International Marketing Case Study

International Marketing Case Study
International Marketing
Explain the stages that are typically taken by a firm moving from a domestic business to an international?
Domestic Marketing: involves the company manipulating a series of controllable variables such as price, advertising, distribution and the product in a
largely uncontrollable external environment that is made up of different economic structures, competitors, cultural values and legal infrastructure
within specific political or geographic country boundaries:
International Marketing: Involves operating across a number of foreign country markets in which not only do the uncontrollable variables differ
significantly between one market and another, but the controllable factors in the form of cost and price...show more content...
Markets – Widespread and sometimes fragmented. Data – Difficult to obtain and often expensive. Politics – Regimes vary in stability– political risk
becomes an important variable. Governments – Can be a strong influence in regulating importers and foreign business ventures. Economies – Varying
levels of development and varying and sometimes unstable currencies. Finance – Many differing finance systems and regulatory bodies. Stakeholders –
Commercial, home country and host country. Business – Diverse rules culturally influenced. Control – Difficult to control and coordinate across
markets.
Moving from being a purely domestic business to an international one is typically a gradual evolution through a number of stages.
1. Management is not interested in exporting and would be unwilling to fill an unsolicited order. The company exists to serve the domestic market only
and does not intend to enter foreign markets.
2. Management fills unsolicited orders from abroad. The 'passive exporter' tends to lack any international focus and perceives export markets as having
a high hassle factor. Many passive exporters are relatively new to the export business, often reacting to unsolicited orders and tend to see their market
as essentially home based. Such firms do not carry out research or invest in export promotion campaigns and have little direct contact with foreign
companies. Firms at this stage perceive

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Essay on International Marketing
Introduction
Marketing across cultures around the world is increasingly becoming a thriving business with the fast–speed globalisation nowadays. The Four 'Ps' of
marketing, namely product, price, place and promotion, include most of the elements of marketing decision–making. However, socio–cultural factors,
in considering the combination of marketing strategies, will always run through them. Socio–cultural factors have a huge influence in people's concept
of product and buying behavior. Lack of cultural awareness not only can lead to a decrease of product sales, but can even collapse the company's
whole international image. In this sense, understanding cultural differences plays an incredibly significant role in process of developing...show more
content...
Among them, 'Uncertainty Avoidance' was defined as ' the lack of tolerance for ambiguity and the need for formal rules' by Hoecklin (1995). Haviland
(2004) summarised the characteristics of culture. Values and attitudes are considered as an important part of culture. Value was defined as 'the
beliefs that are held individually or collectively, perceived consciously or unconsciously, communicated explicitly (verbally articulately) or implicitly
(symbolically), used as the criteria for cognitive, affective, or behavioral judgments to guide our choices out of available options, as they influence
society, while society influences them.'( Kluckhohn et al, 1951) Tepstra and Sarathy (2000) stated that values and attitudes of customers played a
significant role in the work place. As to Starbucks, Harris (2007) claimed that teahouse was a great challenger to Starbucks since it was undergoing a
set of reforms. Kembell (2002) stated that the locations of Starbucks were mainly focused on those unban areas as well as crowed places in town. In
terms of the design of Starbucks in China, Harris пј€2007
пј‰ found that the design and decoration of Starbucks were consistent with the
characteristics of local cultures.
Methodology
The data I gathered in this paper is mainly from Secondary data sources. I found most

International Marketing Essay
Proctor & Gamble originated in 1837, when William Proctor and James Gamble formed a partnership in Cincinnati, Ohio. The partnership flourished
making the company a gaining name as principled manufacturer of high quality consumer goods sold at competitive prices. By 1992 Proctor & Gamble
was a multinational company with annual sales of almost $30 billion profits exceeding $1.8 billion, and a reputation for quality products, high integrity,
strong marketing, and conservative management. When P&G grew they became more and more interested in foreign markets. In 1992 they had sold
their products in more than 140 countries around the world.
In 1991 P&G after being satisfied with their success...show more content...
Retailers felt that the paper was a low profit, low loyalty category. They used it primarily to draw consumers into their stores. Royale had been the
only 3ply tissue on the market, and was viewed as the traditional strong, premium quality facial tissue. Florelle was a 2ply tissue that had received
little promotional attention. It lost most of its market share in 1991 and was down 5.8% at the beginning of 92. Other competing brands of tissue were
Kimberly Clark with their Kleenex brand, which had a very good year in 1991. Scott tissue who at first fell a few shares due to loss of trade support,
but relaunched their brand in September 1991, positioning it as a product with high content of recycle material, and supporting it with heavy
advertising. Irving and all others had average an average year.
Brand Image for Royale based upon it's premium positioning, historically unique 3ply product design and its softness claim, and had built the
leading brand image in the product category. Brand users gave Royale an overall score of 85 on a scale of 100, marginally superior to Kleenex.
Even though Royal enjoyed a very favorable overall brand image, they were lacking on thing that would make their product do even better.
Knowledge about the brand was not as high as they would have liked. Many people who used it didn't even know that it was a 3ply tissue rather than a

1. Many U.S. firms do exceedingly well in the global arena. Which of the following organizations is considered to be the U.S. leader with global
revenues approximated at $285 billion annually? (Points: 1) IBM ExxonMobil Ford Motor Wal–Mart Stores Hewlett–Packard
2. Considering the model of the international marketing task displayed in the text, which of the following reasons demonstrates the most important
difference between the international marketer 's task and that of the domestic marketer? (Points: 1) The international marketer must deal with at least
two levels of uncontrollable uncertainty instead of one. The international marketer must rely on at least two...show more content...
Lam should consider all of the above factors.
11. The four social institutions that most strongly influence values and culture are schools, churches (religious institutions), families, and: (Points: 1)
shopping malls day care centers government agencies the media corporations
12. Which of the following countries would have the most affinity (score highest) for collectivism (cohesive groups are honored and encouraged)?
(Points: 1) Great Britain Australia Canada France Japan
13. ______________ is being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated. (Points: 1)
Cultural ombudsmanship Being a cultural icon Being a cultural maven Cultural sensitivity Cultural borrowing
14. A liking for others, open to tolerance, flexibility, and ability to adjust to varying tempos would all be criteria for achieving ___________ in
international marketing. (Points: 1) profit perception adaptation standardization correlation individualization
15. Time is viewed differently around the world. For example, in Spain "those who rush arrive first at the grave" is a description of feelings toward
time. In which country would we expect to hear

In a world where consumer demands change as quickly as advances in technology and communication, it is no wonder that companies are entering
into a global market. In order for companies to stay on top and be the best in their industry, it is no longer enough to exclusively sell to a domestic
market. The real challenge for companies remains in their ability to successfully market their products abroad. While some basic principles of
marketing remain, such as consideration of price, promotion, place, and product, a whole other set of rules is introduced when speaking of
international marketing. (International Marketing, 2002) The stakes of companies entering into a global market are much higher than those that
choose to stay...show more content...
Prices for both essential and nonessential products have the potential to impact consumer buying patterns. If necessary goods carry a higher price tag, it
leaves less discretionary income for non–essential, more luxurious items. Understanding the idea of income inequality may also prove to be important
when determining the price of products. It is important to understand that middle and upper–income people may also live in areas where the per capita
income is low. (Onkvisit, Shaw, 2004) The analysis of substitution of products is also critical for marketers to do. Some consumers, based on local
conditions may be more likely to consider other products and services in replace of others. One example a source gave was mass transportation. In
cities where there is a high population density, inhabitants may opt for such type of transportation instead of individually owned automobiles. This
would be vitally important for car companies to be aware of. (Onkvisit, Shaw, 2004) Lastly, but perhaps most important to take into consideration are
cultural tastes and differences. One of the worst things a company can do is market to a country in which they have failed to do their research. There
are countless examples of companies making costly marketing blunders when moving abroad. The importance of being aware of cultural norms and
taboos can never be underestimated. Just as in the United States different

Multiple Choice Questions 1.The United States has many successful trade relationships. Four of these relationships account for a tremendous
volume of trade. All of the following countries are among the top four producers of trade for the U.S. EXCEPT: A)Canada B)Mexico C)Japan
D)France E)China 2.For every dollar the United States invested in the economic development and rebuilding of other countries after World War II,
hundreds of dollars returned in the form of purchases of U.S. goods and services. The primary plan after World War II used to rebuild and reinvigorate
war ravaged countries was the: A)Eisenhower Plan B)Marshall Plan...show more content...
B)protection of an infant industry. C)protection of a home market. D)the need to keep money at home. E)to encourage capital accumulation. 14.Randall
Smithe–Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small business after
small business go bankrupt because cheaper foreign goods have been more popular. The UK has just started a cell–phone manufacturing industry and
Smithe–Jones' company is one of the first to try their hand at cell–phone manufacturing. Which of the following would probably be the argument that
Smithe–Jones would use to persuade his government representatives that protectionism is still needed in the U.K.? A)Protection of an infant industry
B)The need to keep money at home C)Conservation of natural resources D)National defense E)The industrialization of a low–wage nation 15.Section
301 of the Omnibus Trade and Competitiveness Act authorizes the U.S. government to _____________ and ___________against specific foreign trade
barriers judged to be unfair. A)suppress and attack B)educate and substantiate C)investigate and retaliate D)market and dominate

The Cosmetics Industry
Estee Lauder vs. Shiseido Cosmetics
Introduction
The cosmetics business is a billion dollar industry. Every year, women are responsible for consuming millions of cosmetic products. The cosmetics
industry is so large because of several factors. The media is a huge contributor to the intense pressure to look a certain way. The idea that "sex sells" is
evident in gossip magazines, movies, advertisements, music, and more subtly– in the business world. People first notice what race someone is, how
beautiful or ugly they are and what clothes they are wearing. Beauty is skin deep; however, first impressions are usually what others use to base their
personal judgments. In...show more content...
I met students in China who had never gone to the bars before, especially with American students, and there were many students who still chose not to
make an exception because they are responsible. Don't get me wrong, I believe that the Chinese do care about looking pretty, but they will not put
precedence of looking attractive if it means it will prevent them from getting things done.
I also visited a shopping mall in Shanghai. A particular department store offered a variety of cosmetic brands, most of which I recognized and am
familiar with. I was surprised to see that Maybeline, a cosmetic brand sold in discount stores such as Target, had a large kiosk complete with sales
representatives. Although there were a variety of American and European cosmetic brands being offered at this department store, about half were
advertised with European models. I expected to see predominantly Chinese or Asian models. In Nebraska, we seldom ever see any Asian models
featured in cosmetic advertisements because there isn't a large demographic of Asians here, but the difference is that China does not have a highly
contrasting, diverse, racial population. So, it would have seemed logical to expect Chinese faces in all cosmetic/retail advertisements, but it wasn't so.
The Products

Cosmetics are almost a universal product for women around the world. According to market research, four out of five women wear

Chapter 7&8 – International Market selection and Entry
Approaches to market selection в†ђ incremental entry vs simultaneous entries в—¦ incremental в†’ usually for small companies with fewer resources
that wants to lower their risk preclude economies of scale. в—¦ simultaneous в†’ extensive resource thus, resulting in higher operating risk, may decide
to leverage across asia pacific area, facilitate economies of scale. в†ђ Concentrated approach vs diversified approach в—¦ concentrated в†’ resources
limited/concentrated in limited number of markets which will reduce cost and operating risks. Economies of scale. Only concentrating on a number of
market в—¦ Diversified в†’ spread risks exposure, broadens market...show more content...
– barriers can be entry (tariff/non tariff)/exit (profit,dividends+capital, taxation) в†ђ which remaining overseas market should be avoided because
competitors (domestic and foreign) are already well established? – help to determine whether market should be included/not because of their potential
competitive reaction. Also include entering a market n prevent others entering the market, entering the market where competition already
exist–confronting them and entering market where competition doesnt exist. The latter strategy designed to build market share and gain experience by
attacking competitive markets in other countries at a latter stage.
4. Market responsiveness в†’ what are firms competitive advantage in OS market в†ђ which remaining OS market are not large enough to justify the
marketing effort that will be necessary to gain a satisfactory market share? – can we gain market share despite the competition? в†ђ Which remaining
OS market are unlikely to respond to those marketing activities that are considered necessary to establish the g/s in the marketplace effectively? – will
the market prevent/allow firm the achieve its objtvs? в†ђ Which remaining OS market prohibit forms of presence that the firm consider as optimal and
can afford when entering a new overseas markt? в†ђ Which remaining OS market are unattractive bcos of costs and problems of reaching them from
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