Texas A&M University-Corpus ChristiCollege of Business

Course and Instructor

Summer 2010MKTG 5335 Marketing in the International EnvironmentMW 6:00-9:45 PM, BH 223Prerequisites: MKTG 5311Duration: June 1-July 2, 2010

Dr. A. N. M. WaheeduzzamanOffice: FC 141Telephone: 361-825-6014 (Office)Email: waheed@tamucc.eduWebpage: http://faculty.tamucc.edu/waheedOffice hours: MTWR (12:00-12:30 PM), MW (5:30-5:55 PM) and by appointment.

Text and Readings

Czinkota, Michael R. and Ilkka A. Ronkainen, International Marketing, 9th Edition, Thomson Southwestern, 2010. Also, reading materials and handouts distributed in class.

Waheeduzzaman, A. N. M. (2008), “Market Potential Estimation in International Markets: A Comparison of Methods," Journal of Global Marketing. 21 (4), 307-320.

Waheeduzzaman, A. N. M. and Leon F. Dube (2004), “Trends and Development in Standardization Adaptation Research,” Journal of Global Marketing, 17 (4), 23-52.

Objective and Learning Goals

The course aims at providing an understanding of international marketing in a changing global environment. An international marketing conceptual framework will be discussed to analyze a

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market, develop a marketing-mix (program/plan), and design a strategy to implement the plan. Students are expected to learn about demand estimation/modeling, market analysis, and marketing planning and strategy from a managerial perspective. A description of the topics that will be covered is given in the course schedule. Specific learning objectives/goals to be accomplished are as follows.

Delineate the difference between domestic and international marketing.

Understand and appreciate the diversity in political, cultural, economic, and financial environment facing international marketing.

Analyze and evaluate a country’s market potential using various political, cultural, economic, and financial criteria.

Estimate demand for a product in a specific country. Design a marketing plan to reach global markets.

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Policy and Method

Web page: Please use my Web page at http://faculty.tamucc.edu/waheed for all instructional purposes. Any change or update will be posted on the web page. Class discussion will follow the Course Schedule provided by the instructor. Check announcements regularly.

Method of Instruction: Discussion of chapters in the text, cases,videos and project will be the principal methods of instruction. Students are expected to engage in creative and meaningful discussion. They must prepare class materials in advance and actively participate in the class. The instructor will grade students based on the quality and the quantity of participation. Attendance and participation is 10% of the grade.

Students must sign attendance everyday. Students will be responsible for all class works whether they attend or not. In case of missed classes supporting documents (medical excuse etc.)must be provided to get credit. Do not sign attendance for others. This is forgery and will lead to penalty.

Case Analysis: Case analysis is a critical component of the class. It helps students understand real life situations in international marketing. A guideline for case analysis is given in the syllabus. All students must submit a typed hard copy of the case in class before the discussion. Submission dates are mentioned in the syllabus. Late submission will not be accepted. Written case analysis is 25% of the grade. An evaluation matrix for the grading of case analysis is enclosed.

Chapter Discussion: Chapters in the text help the development of theoretical foundation in the discipline. All students must read the chapters before coming to class. The Chapters will be discussed by the students according to the Course Schedule. Instructor will fill-in as and when necessary. Chapter presentation and discussion is 10% of the grade. In case of grouppresentation, all members of the group will receive the same

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grade. Presentations must be in Power Point. Handouts of the Power Points must be distributed in class by the presenter(s). Chapter discussion and presentation evaluation matrix for gradingis enclosed. Please send an electronic copy of the Power Point presentation in advance (by 2 PM on the day of the presentation) so that the instructor can put it on the web.

Final Examination: The final examination will be written short essay type. Final examination questions will very similar to the Discussion Questions for Final distributed. No make up for the final will be given without valid reason. The instructor in accordance with the university policy will determine validity. Final Examination is 25% of the grade.

Project: The research project provides an opportunity to apply the concepts learned in the class. Please collect data according to the instruction and follow the format to write/present the project. The project must be typed and submitted on time. Both electronic and hard copy submissions are required. The instructorwill grade the hard copy. The electronic copy will be kept as reference. The project is 30% of the grade, 25% for write-up and 5% for presentation.

Integrity and Conduct: Students are expected to maintain highest standards of integrity and professionalism in their academic workand in in-class conduct. Zero tolerance for academic dishonesty, plagiarism, cheating or misconduct (e.g., cross-talking, cell phones, and online distractions in laptops) will be upheld. Please turn off cell phones or other electronic devices during class. Please consult university and college policy (e.g., College of Business Student Code of Ethics) on these issues. Deviation or misconduct will lead to penalty.

Students with Disabilities: As a university, TAMUCC complies withThe Americans with Disabilities Act (ADA), a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities be

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guaranteed a learning environment that provides for reasonable accommodation of their disabilities. Please inform the instructorin advance if you have any disability so that he can accommodate you in the class.

Office Hours: The designated office hours are mentioned in the course syllabus. The instructor maintains an open-door policy; feel free to walk-in whenever he is in the office. You may find his office door closed; please knock and come in. He usually keeps the door closed because of the noise of the photocopying machine in front of his office. For course related issues please use the office hours, do not send emails. You may not receive a reply.

Grading

As indicated in the previous section, students will be evaluated on the basis of their performance on five criteria: case analysis(25%), chapter discussion (10%), final (25%), project (30%), and attendance and participation (10%). Actual grading will depend onthe distribution of score of the class. A possible evaluation anddistribution for grading would be as follows: A = 90%-100%, B = 80%-89%, C = 70%-79%, D = 60% -69% and F = below 60%. Please get your final grades through the university system. Do not call my office or send emails. You may not receive a reply.

GOOD LUCK! HAVE A GOOD SEMESTER!

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Summer 2010MKTG 5335 Marketing in the International Environment

Dr. A. N. M. WaheeduzzamanCourse Schedule

Date Topic ChapterJune 2 W Global Marketing Imperative

Trade Institutions and Trade PolicyThe Economic Environment Discussion leader: WaheeduzzamanVideo 1: Globalization- Winners and Losers

124

June 7 M The Cultural EnvironmentThe Political and Legal EnvironmentDiscussion leader:Video 2: Doing Business in Brazil

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June 9 W Strategic PlanningMarketing Organization, Implementation and ControlEstimating Demand/Market Potential (Waheeduzzaman 2008)Discussion leader: Case 1: IKEA

67

June 14 M ResearchMarket Entry and ExpansionDiscussion leader:Case 2: Car Financing in ChinaVideo 3: Colonel Comes to Japan

89

June 16 W Product AdaptationGlobal Product Management and BrandingGlobal ServicesDiscussion leader:Case 3: Parker Pen CompanyVideo 4: Branded- Nike

101415 

June 21 M Export PricingGlobal PricingDiscussion leader: Case 4: Dr Eris: Cosmetics from PolandVideo 5: Black Gold Wake up & Smell the Coffee

1117

June 23 W Marketing CommunicationGlobal Promotional StrategiesDiscussion leader: Case 5: Honeyland Manuka Honey from New ZealandVideo 6: China’s Convenience store war

1218

June 28 M Distribution ManagementGlobal Logistics and Materials ManagementDiscussion leader: Case 6: Blood Free Diamonds

1316 

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Project PresentationJune 30 W International Marketing and the Future

Course Review, Review for FinalDiscussion leader: WaheeduzzamanProject PresentationAll projects due in class

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July 2 F Final  

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Summer 2010MKTG 5335 Marketing in the International Environment

Dr. A. N. M. Waheeduzzaman

Case Analysis

The objective of case analysis is to prepare students for decision making in international marketing. This is an individual assignment. Students are required to submit six written case analyses in view of the questions given below. Theymust not be more than two pages, typed. They must be submitted in class before the beginning of case discussion. Late submissions will not be accepted. Best five cases out of six will be taken for grading.

Due Date

Page

Case Case Analysis Questions

June 9 162 IKEA Evaluate IKEA’s standardization-adaptation strategy: what has allowed IKEA to be successful with arelatively standardized product and product line in a business with strong cultural influence? Did adaptations to this strategy in the North American market constitute a defeat to its approach?

June 14

166 Car Financing in China

Develop entry strategy for a car-financing company: what is the mostprudent mode of entry and market development strategy for a car-financing arm of an automaker (e.g.,GMAC) in China?

June 16

314 Parker Pen Company

Evaluate Parker Pen’s globalization strategy: was it flawed or merely plagued by implementation challenges?

June 452 Dr. Eris: Suggest marketing strategy for Dr.

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21 Cosmetics fromPoland

Irena Eris Cosmetics Laboratories: what should the company do to secureits future as market leader in facial cosmetics segment in the Polish market?

June 23

439 Honeyland Manuka Honey from New Zealand

Suggest export and logistics strategy for an international new venture: what are the contextual requirements when exporting from NewZealand? How would you manage the logistics of the company?

June 28

638 Blood Free Diamonds

Ascertain ethical responsibility: Asa diamond retailer, what options do you have to ensure that the diamondsthat you sell are not conflict diamonds? What would you do?

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Summer 2010MKTG 5335 Marketing in the International Environment

Dr. A. N. M. Waheeduzzaman

International Marketing Class Project Due in class on June 30, 2010

SituationYou are the international marketing manager of a U.S. household appliance manufacturer that markets consumer durables all over the world. Its products include coffee maker, toaster, microwave oven, electric oven, bread maker, kitchen accessories, refrigerator, dishwasher, clothes washer and clothes dryer. The company has decided to export its products outside United States. You have been given the responsibility to conduct a preliminary market survey for any one of the above products in any one of the following sets of countries (foreign students must not pick theirnative countries). Your research should help the company determine a specific country it should enter.

Set 1: Argentina, Brazil, and ChileSet 2: China, India, and IndonesiaSet 3: Malaysia, Philippines, and ThailandSet 4: Egypt, Morocco, and Saudi ArabiaSet 5: South Africa, South Korea, and Turkey

Data Collection and PresentationMost of the data for the project can be obtained from various secondary sources including Global Market Information Database (GMID), National Trade Data Bank (NTDB), Globaledge (Michigan State University), The World Bank, United Nations, Central Intelligence Agency (CIA), Heritage Foundation, Freedom House, Transparency International and World Economic Forum. For a detailed list visit my website links.

Some of the variables need to be calculated. Use your judgment in calculation. Be as realistic as possible. Use the same unit/base and the U.S./International Dollar fixed

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exchange rate. Usually, the GMID default is the latest year;you may choose this for your analysis. The sources given at the end of this document may also be helpful.

The findings of the survey should be presented in the following manner.

Prepare seven tables, as enclosed, describing various aspects of the country.

Evaluate the country using data from the tables. Report your evaluation according to the presentation format given below.

Write an analytical paper, not just a description. Use facts, figures to justify your argument.

Presentation Format and GuidelinesThe report should be presented in a professional manner. It must be typed. Use the American Psychological Association (APA) guidelines for writing style, citations and format. Bell Library has a short handout on APA guidelines. All sources from which data have been collected must be properly cited in the paper as references. Use the enclosed presentation format to report your findings. Follow the page limitations for each section of the paper.

Project Submission and QuestionsThe project must be submitted on time. No excuses will be entertained. The project should be completed in group. No more than 5 members can be included in one group. All members of the group will receive the same grade. The instructor will not entertain any group related conflicts. Form groups at your own discretion. Please consult your instructor if you have problem inunderstanding the assignment. Students are advised to use class time and office hours for project and class related questions. Emails should not be substituted for these purposes.Project Presentation Format

Cover pageTable of ContentsExecutive Summary (must be 1 page)

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I Introduction (must be 1 page)Describe the purpose, scope, methodology and limitations of

the paper.

II Market Potential and Purchasing Power (2-3 pages)Use Table 1 for your analysis. Explain the market potential in terms of population, households and wealthy segments. Comment on the trend and growth potential in the country.

III Estimated Demand for the Durable (2-3 pages)Use Table 2 for your analysis. Get the possession of durables data from GMID and estimate the yearly demand. Also, estimate demand using chain ratio and method of analogy. Make an average of the three estimations and comment on the trend and growth.

IV Economic and Social Environment (2-3 pages)Use Table 3 for your analysis. Explain the economic and social growth of the market. Relate this to Market Potential and Purchasing Power. Also, relate the discussion to human development and quality of life in the country.

V International Business Environment (2-3 pages)Use Table 4 for your analysis. Explain the international business environment of the county in terms of investment, exports, imports, and reserve position. Also, relate the discussion to country risk, globalization index, doing business rating, and economic freedom ratings.

VI Government and Political Environment (2-3 pages)Use Table 6 for your analysis. Describe the government and its policy towards international business. Explain the tariff and nontariff barriers and monetary control used by the government. Indicate the political freedom and corruption situation in the country.

VII Standardization/Globalization and Marketing Mix (3-5 pages)

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Use Table 7 for your analysis. Discuss the 4Ps in the context of the country market. Discussion of the 4Ps shouldfocus on the standardization and/or adaptation issues and entry strategy of the company. Each element of the marketing mix must be discussed separately.

VIII Conclusion (must be 1 page)Based on your analysis above provide a conclusion in one page. Explain if you are interested in entering the country. If yes, how would you do so? Explain.

ReferencesTables 1-7Charts and graphs

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Table 1Market Potential and Purchasing Power

Country 1Year

2004 2005 20062007

2008

2009

Population: National Estimates at Jan. 1st . '000Households . '000Urban Households . '000Occupants per Household at January 1st

Households (% of Total) with an Annual Disposable Income over US$5,000Households (% of Total) with an Annual Disposable Income over US$7,500Per capita GDPAnnual Disposable Income . US$ mnAnnual Disposable Income per householdAverage Annual Income of Households with a Disposable Income over US$5,000Average Annual Income of Households with a Disposable Income over US$7,500Average Annual Income of Households with a Disposable Income over US$10,000Consumer Expenditure on Household Goods and Services . US$ mn

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Table 2Estimated Demand for the Durable

Country 1Year 2004 2005 2006 2007 2008 2009

Possession of the durable. % of householdsTotal demand of the durablebased on possession dataEstimated demand using Chain Ratio MethodEstimated demand using Method of AnalogyAverage estimated demand

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Table 3Economic and Social Environment

Country 1Year 200

4 2005 20062007

2008

2009

GDP Measured at Purchasing Power Parity . mn international $Per capita GDPReal GDP Growth - % growthInflation - % growthProductivity . US$ per person employedGini Index . %Financial Cards in CirculationTotal Cards TransactionsSavings Ratio - % of disposable incomeLife Expectancy at Birth: Total Population . yearsAdult Literacy Rate . % of population aged 15+

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Table 4International Business Environment

Country 1Year

2004 20052006 2007

2008 2009

Exports . US$ mnImports . US$ mnForeign Direct Investment Inflows - US$ mnForeign Exchange Reserve - US$ mnExports as a % GDPImports as a % of GDPFDI Intensity . % of total GDPForeign Exchange Reserve as a % of ImportsAverage tariff rate

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Table 5Country Ratings

Country 1Year

2004 2005 2006 2007 2008 2009Global Competitiveness Index. ScoreCountry Risk Rating . ScroeHuman Development Index . ScoreGlobalization Index . Score/RankingIndex of Economic Freedom . ScorePolitical and Civil Liberties RatingEase of Doing Business Ranking . ScoreCorruption Perception Index . Score

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Table 6Government and Political Environment

Country 1Year

2004 2005 2006 2007 2008 2009Form of government

Stability of government policy

Government policy towards foreign businessParticipation in regional economic/trade blocsNon-tariff Barriers: documentations, standards,import restrictions etc. Monetary/exchange restrictions: profit repatriation, money transfer

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Table 7Standardization/ Globalization and Marketing Mix

Country 1Marketing mix

Explanation S-ARating(1-7)

Product

Price

Promotion

Place

Note: Briefly explain each P in Explanation. Make a Standardization-Adaptation (S-A) rating for each P on a seven-point scale.

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Sources for the Project

The Global Market Information Database (GMID), National Trade Data Bank (NTDB), Stat-USA, Globaledge (Michigan State University), World Bank, United Nations, Central Intelligence Agency (CIA), Heritage Foundation, Freedom House, Fraser Institute, Transparency International, World Economic Forum, World Trade Organization, Organization for Economic Cooperation and Development (OECD), World Tourism Organization, InternationalLabor Office and various other sources should provide you the relevant data for the project. Most of these sources are mentioned in my website resource links. Please understand that the WebPages change quite frequently and I do not have any control over them. Feel free to share your experiences with the class.

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MKTG 5335 Marketing in the International EnvironmentDr. A. N. M. Waheeduzzaman

Written Project Evaluation

Date: ___________ Project title: ______________________________Group: ___

Criteria Points PointsEarned

1 Introduction 10

2 Population and Demographics 10

3 Demand Estimation 10

4 Economy and Market 10

5 International Business Environment

10

6 Government and Politics 10

7 Marketing Mix 10

8 Conclusion 10

9 Data collection, tables 10

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Citations and references 10

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Overall quality and presentation

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Total 120

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Comments:

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MKTG 5335 Marketing in the International EnvironmentDr. A. N. M. Waheeduzzaman

Project Presentation Evaluation

Date: __________ Project title: _____________________________Group: _____

Criteria Excellent(5)

Good(4)

Satisfactory(3)

Poor(2)

Very

Poor

(1)

Total

1 Introduction

2 Evaluation of countries

3 Justification of choice

4 Implementation of thedecision

5 Facilitate and moderate class discussion

6 Team coordination in presentation

7 Overall quality (10 points maximum)Total score (out of maximum 40 possible points)

Comments:

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MKTG 5335 Marketing in the International EnvironmentDr. A. N. M. Waheeduzzaman

Class Discussion of Chapters

Date: __________ Chapter: ________________________________Group: _____

Criteria Excellent(5)

Good(4)

Satisfactory(3)

Poor(2)

Very

Poor

(1)

Total

1 Presentation of outline

2 Understanding of materials

3 Communication of materials

4 Facilitation of classdiscussion

5 Questions and answers

6 Team coordination in presentation

7 Overall quality (10 points maximum)Total score (out of maximum 40 possible points)

Comments:

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Summer 2010MKTG 5335 Marketing in the International Environment

Dr. A. N. M. Waheeduzzaman

Discussion Questions for Final(The questions may change as the class progresses)

Introduction and Economic Environment (Chapter 1, 2 and 4)1. What is international marketing? How does it differ from

domestic marketing?2. What are the objectives and functions of World Trade

Organization? What role does it play in Globalization?3. What is integration? What are the different levels (types)

of regional economic integration? Explain.

Cultural Environment (Chapter 3)1. “Culture is one of the most challenging elements in

international marketing.” How can an international marketerface the challenge?

2. Self-reference criterion (SRC)- the unconscious reference toone’s own cultural values- is the root of most internationalbusiness problems. Explain.

3. How culture affects different elements of the marketing mix?Explain.

Political Environment (Chapter 5)1. Why governments use export or import controls? What role

does it play in international marketing?2. What are the common nationalization risks multinationals

faces? What can they do to prevent them?

Global Strategic Planning (Ch. 6)1. How “globalization drivers” affect the international

marketing strategy of a company?2. What are Porters’ generic strategies? How are they related

to a company’s competitive strategy, globally?

Marketing Organization, Implementation and Control (Chapter 7)

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1. What are basic organizational structures we observe in the world? Why matrix organization is so much appreciated?

Research and Demand Estimation (Chapter 8)1. What are the advantages and disadvantages of secondary data?

What problems an international marketer may encounter in collecting secondary data?

2. What is environmental scanning? How does it relate to the entry strategies of the multinationals?

3. What are the various methods in demand estimation? How can we evaluate them?

Market Entry and Expansion (Ch. 9)1. What are the criteria for evaluating entry strategies?

Explain. 2. What is Joint Venture? When (under what circumstances)

would a firm opt for Joint Venture as an entry mode over Licensing?

Product (Chapter 10, 14 and 15)1. How the elements or the degree of standardization is

influenced by the environment of the country? How is it related to performance?

2. What is an optimum product mix? What factors influence the optimum product mix decision of a company in international marketing?

3. What is country of origin effect? Is international brandingovershadowing it?

Pricing (Chapter 11, 17)1. What are the various terms of payments in exporting? Explain

their advantages and disadvantages.2. What is transfer pricing? How is it related to the

competitiveness and performance of a company?

Promotion (Chapter 12, 18)1. What is international media planning? What role a country’s

culture play in media planning?

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2. What are the various communication tools used by international marketers? Explain.

Distribution (Chapter 13, 16)1. What is international logistics? How can it increase the

efficiency of a company?2. What is supply chain management? How an international

marketer can benefit from its proper management?3. What are the common export/import documents we are aware of?

Explain their usefulness in exporting.

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