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Summer 2013
Master of Business Administration- MBA Semester 3
IB0011 - International Marketing -4 Credits
(Book ID: B1199)
Assignment- 60 marks
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400
words. Each question is followed by evaluation scheme.
Q1. Define multinational corporations. How is international marketing different from domestic marketing?
(definition- 4 marks, difference- 6 marks) 10 marks
Answer : Multinational corporations :
An enterprise operating in several countries but managed from one (home) country. Generally, any company or
group that derives a quarter of its revenue from operations outside of its home country is considered a
multinational corporation.
There are four categories of multinational corporations:
(1) a multinational, decentralized corporation with strong home country presence,
Q2. “Though society and culture do not appear to be a part of business situations, yet they are actually key
elements in showing how business activities will be conducted”. Discuss.
( discussion on culture and its effect on business- 10 marks) 10 marks
Answer : Culture and its effect on business :
Businesses do not exist in a vacuum, and even the most successful business must be aware of changes in the
cultures and societies in which it does business. As society and culture change, businesses must adapt to stay
ahead of their competitors and stay relevant in the minds of their consumers. Culture is an important part of
International Business. Culture is defining the collection of values, beliefs, behaviors, customs and attitudes of
the member in the society.

2. Q3. Discuss the entry model adopted by McDonalds to build a presence in foreign markets. What are its
limitations?
( mode of entry by McDonalds - 6 marks, limitations- 4 marks) 10 marks
Answer : Mode of entry by McDonalds :
1. The attractiveness of a country as a potential market for an international business depends on balancing
the benefits, costs, and risks associated with doing business in that country. The long-run economic
benefits of doing business in a country are a function of factors such as the sixe of the market, the
present wealth of consumers in that market, and the likely future wealth of consumers, which depends
upon economic growth rates.
Q4. Market segmentation divides market into distinct subsets. Explain the purpose and bases of international
market segmentation.
( purpose- 2 marks, bases- 8 marks) 10 marks
Answer : Purpose of market segmentation :
The aim is to avoid a ‘scattergun approach’ to marketing by targeting your messages at specific groups of
customers. This means different messages for different groups. Customers like to receive information
that is relevant to them and their needs which is the reason for carrying out market segmentation. But it
is also helps you to determine whether they are high, medium or low value customers
Q5. Explain the meaning and benefits of e-marketing. Discuss the various e-marketing approaches.
( meaning- 2 marks, benefits- 2 marks, approaches- 6 marks) 10 marks
Answer : e- Marketing :
Very simply put, e-Marketing or electronic marketing refers to the application of marketing principles and
techniques via electronic media and more specifically the Internet. The terms e-Marketing, Internet marketing
and online marketing, are frequently interchanged, and can often be considered synonymous. e-Marketing is the
process of marketing a brand using the Internet. e-marketing allows you to reach people who want to know
about your products and services instantly.
Q6. List any 6 export promotion schemes. What are SEZs and how are they beneficial to international trades
and marketers?
( listing- 3 marks, meaning of SEZ- 2 marks, benefits- 5 marks) 10 marks
Answer : Export promotion schemes :
To achieve the objectives laid down under the Foreign Trade Policy 2004-09 and double India’s percentage share
of global merchandise trade by the year 2009, the government is committed to providing a stimulus to exports
through various export promotion schemes from time to time. Details of the existing Export Promotion Schemes
are as follows:
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