International Marketing and how it is applied

1. Announcements…
 TODAY’S CLASS
 Completion of UNIT 16
 Handing out of Semester Test 2
 Remarks and queries
 NO CLASS NEXT WEEK( 27 April-1 May)
 Work on your TATA Presentations
 TATA ASSIGNMENT INFORMATION
 Time-slot bookings close today at 16:00
 Venue details will be confirmed on Blackboard
 Teams who arrive LATE= 0
 Visit Blackboard regularly to keep updated.

2. International MarketingUNIT 16

3. GOING
INTERNATIONAL

4. Domestic vs. International
marketing
 International marketing is marketing across national borders, to:
 evaluate the dynamic environment for opportunities and threats
 develop market offerings lead to the satisfaction of customers’ needs and
wants
 achieve the objectives of the enterprise, the consumer and society.

10. Challenges of International Marketing (pg.
592)

12. THE INTERNATIONAL ENVIRONMENT (pg.
594-606)

13. Complexity of International
Markets

14. YOUR SCENARIO

16. Benefits of International Marketing (pg. 593)
 Increase sales
 Increased profits
 Reduced risk
 Lower unit cost
 Economics of scale
 Reducing seasonal fluctuations
 Extending the product life cycle
 Improved efficiency and product quality
 Untapped markets
 Access to foreign finance
 Status as an international marketer

18. • To gather information about a market’s
size, trends and general attractiveness
as a possible target market.
• To evaluate the appropriateness or
suitability of the marketing offering of
the firm for the selected target market
Researching International
Markets

20. Pages 618-640
The International Marketing
Mix

21. Similarity or diversity of the
markets, language barriers,
cultural differences, local
advertising agency standards,
the media mix
•Competitor, cost or demand
orientated?
•Differential pricing strategy
•Market orientated
international pricing
•Other pricing strategies
Sell the same product using
the same promotional
message worldwide
Modify product but retain
uniform promotional
messages
Modify both product and
promotional message
Invest in and develop a
totally new product for the
export market
Do you:
•Sell and deliver directly to
the end user; or
•Sell through intermediaries

33. Factors Favouring
PRODUCT STANDARDISATION
 Production gives rise to economies of scale
 Standardised products permits amortisation of
development costs
 Requires additional records and stockaudits
 Products are likely to be affected by cultural and
environmental differences
 Essential to consumer acceptance where
products are of relevance
 Must achieve uniformity with the standardised
product
 Homogeneous products don’t require

34. Factors Favouring
PRODUCT DIFFERENTIATION
 Maximising profits is the driver behind modification of products
 Differing consumertastes influence design and manufacture of
products
 Inadequate consumer buying-power requires a low price and
reduction in quality
 Variations in national conditions
 Low technical ability- product simplified
 Tariff levels may dictate local manufacture or assembly
 Government taxation policies may necessitate change to product
 Varying road and traffic conditions
 Change in climate conditions
 If product is perceived as new– may have to be adapted to
overcome resistance
 Local labour costs may influence level of automation production

37. Semester Test 2
Football Factory and Cheeki Cherry
Feedback

39. SEMESTERTEST 2

40. MEMO:
SEMESTERTEST 2
REMARKQUERY:-Indicate the section and question numberon the top of youranswersheet
TEST TOTAL: 50

41. QUESTION 1 (9 MARKS)

42. Test 2 MEMO
A product is more than what is seen by the eye, it includes everything the consumer receives
in an exchange.
1.1. Using the classification of consumer products as a guideline, classify the type of
product that Kia offers the consumer market. Motivate your answer.
DURABLE PRODUCT ½ Consumers buy a car once/ lasts long (more than 3 years) ()
Duursame produk ½ Word gebruik vir langer as 3 jaar ()
OR
SHOPPING PRODUCT () Inkopie produk
As consumers will go to more effort to purchase and will compare prices and brands
before making a final choice. ()
OR
SPECIALTY / SPECIAL PRODUCT () Spesialiteitsproduk
Products that the consumer wants for personal satisfaction and with unique
characteristics (7 year warranty) ()
[1+1=2]

43. 1.1. Indicate each layer of the product concept and explain how Kia has strategically
addressed each layer, in order to create valuable offerings for the market.
Many examples have been indicated on this memorandum. A student only needs to
provide ONE example PER PRODUCT LAYER.
CORE PRODUCT (½) KERN PRODUK
Transportation / Reliable means of transportation / trust and security ()
TANGIBLE PRODUCT (½) TASBARE PRODUK
Kia branding / the actual car / new car designs / great quality / affordable and
quality cars / standard with electric windows, trip computer etc. ()
AUGMENTED PRODUCT (½) TOEGEVOEGDE PRODUK
Seven year warranty / service plan / exceptional customer service / ()
POTENTIAL PRODUCT (½) POTENSIËLE PRODUK (students need to think out of the
box)
Solar powered cars range / scooters ()
PRODUCTION / PRODUCT IMAGE (½) PRODUKSIE BEELD
Trusted and secure brand / affordable brand / an image of great quality and design
/ affordable yet stylish. (½)
[(1 ½ x4) +1= 7]
1.2.

44. QUESTION 2 (7 MARKS)

45. 2.1. Explain any three (3) benefits that Kia may experience, due to their
brand.

46. 2.2. Different brands project different values to consumers. Identify the brand value that Kia
has emphasized in its new branding strategy. Motivate your answer by referring to the
case study.
Any ONE of the following:
DIFFERENTIATION VALUE () Differensiasie waarde - as they strive to be the first to
offer quality, great design / stylish, additional features, and a brilliant service plan /
7-year warranty at a better price / competitive prices than any competitor. ()
OR
FUNCTIONALITY VALUE () Funksionaliteitswaarde - Kia has emphasised its 7-year
warranty, which is their unique selling point. ()
OR
RISK REDUCTION VALUE () Risko verlaging/afname waarde - Kia has emphasised its
7-year warranty, which is their unique selling point. ()
[1+1=2]

47. 2.3. Identify two (2) brand elements that Kia has used to help the company distinguish its
offerings in the market place.
Any TWO of the following:
Brand name: Kia () / Logo () / Slogan: The Power to Surprise ()
[1+1=2]

48. QUESTION 3: (6 MARKS)

49. 3.1. Identify one (1) internal factor that has impacted Kia’s
pricing strategy. Justify your answer.
•Marketing / Organizational/ Brand Goals or Objectives () Bemarkingsdoelwitte
o
Kia’s new growth plan has several marketing objectives in mind / to
increase demand – thereby helping to meet the objective of growth / Kia
had to revise their entire marketing mix / repositioning of Kia / striving to
be the first… ()
OR
•Organisational Costs / Organisasie koste
[1+1=2]

50. 3.2. Identify one (1) external factor that has impacted Kia’s pricing strategy.
Motivate your answer. Any ONE of the following combinations:
COMPETITION () Mededingende nabootsing - Kia is aiming to set the standard for
competitors, as they strive to be the first to offer quality, great design, additional
features, and a brilliant service plan at a better price than any competitor / evident in
mature markets such as the car market. The car market, in particular, has a large
number of long established brands- barrier of entry/ competing mainly on price ()
OR
CONSUMER BEHAVIOR () Verbruikergedrag - Since consumers purchasing cars are often
comparing prices, this serves as a competitive advantage for Kia ()
[1+1=2]

51. 3.3. Specify the pricing strategy implemented by Kia.
Motivate your answer.
COMPETITIVE PRICING OR LEADERSHIP PRICING ()
Kompeterende pryse
Kia is aiming to set the standard for competitors, as they strive to
be the first to offer quality, great design, additional features,
and a brilliant service plan at a better price than any competitor
/initially the Kia Company entered the market as an affordable
car brand, competing mainly on price, by using a competitive
pricing strategy.()
[1+1=2]

52. QUESTION 4: (10 MARKS)

53. 4.1. Identify all the participants/members in Kia’s distribution
channel. Refer to the case study to motivate your answer.
MANUFACTURER / PRODUCER (½) - Kia Motors / 12
manufacturing and assembly plants and subsidiaries in 165
countries around the world (½)
RETAILER (½) - Kia Dealerships / 755 dealerships (½)
CONSUMER (½) - Individuals who has purchased a Kia vehicle (½)
[½ x 6= 3]

54. 4.2. Identify three (3) activities or functions that the channel members (identified in
question 4.1.) have performed, on behalf of Kia Motors.
ANY 3 OF THE FOLLOWING: [3 x 1 = 3]
- Intermediaries close gaps and provide utility
- Intermediaries resolve discrepancies
- Intermediaries reduce transactions
- Intermediaries synchronise needs, do bulk breaking and re-assort product
offerings
- Gather information about potential and current customers, competitors etc.
- Develop persuasive communication to stimulate purchasing
- Reach agreement on price and facilitator transfer of ownership
- Place orders
- Assume risk
- Provide storage and movement of physical goods
- Provide for buyer’s payments through banks
- Oversee transfer of ownership
 Tussengangers sluit gapings en verskaf nut
 Tussengangers los teenstrydighede op
 Tussengangers verminder transaksies
 Tussengangers sinkroniseer behoeftes, doen grootmaat breking en hersorteer
produkaanbiedings

56. 4.3. Classify the distribution structure decision made by Kia. Motivate your answer.
SELECTIVE DISTRIBUTION () Selektiewe distribusie
Appropriate when the objective is DIFFERENTIATION, since Kia aims to differentiate
themselves from competitors / Kia has more than 755 dealerships. Since its 1994
introduction, Kia has conducted a methodical market-by-market rollout of dealerships
who provide exceptional customer service. ()
[1+1=2]
4.4. Indicate whether Kia uses a push or pull strategy to stimulate demand. Motivate your
answer.
PULL STRATEGY () Trek strategie
All promotional initiatives are directed to the consumer /
Kia uses conventional techniques such as television, print, digital and social media
advertising campaigns alongside extensive use of sports marketing such as
sponsorship. They also produce online banner advertisements, place advertisements
on billboards and use their website to meet the needs of their consumers. ALL
BENEFITS ARE FOR THE CONSUMER- warranty, design etc. ()
[1+1=2]

57. QUESTION 5: (20 MARKS)

58. 5.1. Identify the objective of Kia’s latest television advertisement. Motivate
your answer by referring to the case study.
INFORM / PERSUADE / CREATE AWARENESS / ESTABLISH AN IMAGE ()
Inlig/Oorreed
television campaign which is focusing on building emotional connections with
consumers with a goal to show consumers “how it feels” to drive a Kia. It depicts
‘real drivers’ describing what they want from their car, emphasising the 7 year
warranty which can be found with no other company but Kia. ()
[1 x 2 = 2]

59. 5.2.1. There are various levels/types of sponsorship. Indicate the level/type of
sponsorship that Kia has used. Motivate your answer.
MULTI-SPONSORSHIP () Multi-borgskap
(Only option- no marks for international/ team/ cultural- as it shows the
student could identify the “bigger picture)
Kia does not only sponsor an event, but causes, national teams, places, cultural
events etc. ()
If the student only mentions ONE particular sponsorship – E.g“FIFA World Cup and UEFA
Championships” / “South African Music Awards”- then only (½)
[1+1=2]

60. 5.2.2. Identify three (3) sponsorship objectives that Kia has pursued with their various
sponsorship initiatives. Motivate your answer by referring to the case study.
One mark for identifying the sponsorship objective and one mark for the case
reference. Any THREE of the following combinations:
SPONSORSHIP OBJECTIVE CASE REFERENCE
Reinforce, enhance or alter brand image /
Strengthen a corporate image / Positive
Associations () Versterk, verbeter of te verander
handelsmerkbeeld
By associating with exciting and
interesting causes, events, teams and
individuals; Kia shows that it is also
exciting and interesting. ()
Create an opportunity for product sampling and
trial()Geleentheid vir die produk beproewing
By being the official vehicle partner of
the SA music awards. ()
Forge new links with opinion leaders / Create
Positive Associations ()Smee bande met opinie
leiers
Rafael Nadal is Kia's global
ambassador. ()
Reach Larger Audience / Create Awareness / Gain
competitive advantage
By sponsoring the events, teams etc.
Kia is “out there” and is exposed to
more people, hence creating
awareness.
[3 x 2=6]

62. 1. Content () Kia has provided online users with exclusive
and up-to-date content. Take a look at the Kia Facebook page,
for example, which keeps followers informed about the latest
car debuts, such as the new-generation Kia Optima. ()
2. Community () Kia actively uses it’s blog to interact with
their loyal community of blog followers, who use the blog as a
forum for car lovers to share their opinions. Kia is dedicated to
responding to and sharing users’ comments on the blog’s
homepage. ()
3. Communication () contact dealerships / Kia is dedicated to responding to and
sharing users’ comments on the blog’s homepage. ()
4. Commerce () A recent addition to Kia’s digital marketing initiatives is their QR
code campaign. Users who scan the Kia QR code are transferred to a mobile
friendly version of their website, where users can customise the colour of their
ordered vehicle, contact dealerships and even register for a test drive. ()

63. CHEEKICHERRI and Football
Factory

64. Feedback
 WELL DONE:
 In-depth analysis on the
content, structure and
appearance.
 Brilliant, practical and feasible
recommendations for
improvement and stickiness.
Detailed and specific!
 Clear “How-To” guidelines for
additional social media
campaigns
MARKS LOST:
Poor analysis of the website. Too
vague.
Recommendations were not practical
and not linked to the core business.
Social media campaigns- Too vague.
Must specify how, what will it contain,
who will it target etc.