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IBO-2

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Attempt all the questions

1) A) Distinguish between the following:

i) Multinational Marketing and Global Marketing

SOLUTION

MULTINATIONAL MARKETING

Multinational marketing, also known as international marketing, is when a business directs products and services
toward potential consumers in other countries. Seeking new markets helps to offset domestic saturation and increase
revenue.

Businesses use one or more core methods of multinational marketing: entering joint ventures with foreign companies,
exporting goods or services from another country, licensing trademark and patent rights to foreign companies and
creating manufacturing plants in companies abroad. There is no single best practice.

There are both advantages and disadvantages to this type of marketing. Advantages include establishing a global
presence, increasing revenue and minimizing the effect of negative domestic financial situations such as recessions.

Disadvantages include foreign trade policy changes, cultural challenges and the host country's laws, infrastructure and
technology level. Much research and planning must be done before a company enters a foreign market.

MULTINATIONAL MARKETING STRATEGIES

Lowering of trade barriers, increased communication and the ease of international shipping have given rise to
multinational corporations. These companies sell, manage and distribute products across geographic boundaries.
Marketing approaches can vary drastically based on the company’s preferences, products and targeted regions.
Marketing internationally requires reviewing differences in legal requirements, modifying languages on products and in
advertising, and determining how to approach variations in culture, buying patterns and customer preferences.

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Standardize

In this approach, products, marketing and distribution channels are as similar as possible. While adjusting for language
and legal variations as needed, the business strategy remains the same. This standardization works best when there is a
strong brand in high demand around the globe. Standardizing multinational marketing minimizes costs, management
requirements and the need for on-location personnel.

Localization

Local customs, laws and practices guide a customization multinational marketing strategy. This course relies heavily on
local employees to help translate the product needs and marketing mix necessary for success in their local market.
Products are customized based on the buying patterns and cultural differences between countries.

Regionalization

Regionalization balances localization and standardization strategies. Standard products and promotion approaches are
developed on a regional basis. Regions may be defined by continent or by smaller blocks as appropriate. Some local
employees are needed, especially to manage logistical tactics.

Centralization

A centralization strategy uses a single headquarters for all marketing and distribution requirements. When needed,
companies dispatch employees across the globe to support their marketing efforts. This type of marketing strategy helps
unify the company and may minimize expenses. The drawback of centralization is the lack of local connections and the
potential to misunderstand cultural trends and shopping habits.

Subsidiary Approach

Multinational firms can establish subsidiaries by region or nation that serve as partially independent entities for
producing, distributing and marketing products to their geographic area. A subsidiary approach allows more local control
and responsiveness to consumer changes and needs. This type of arrangement may be a necessity in countries where
joint ventures are required for foreign entry of goods and services.

GLOBAL MARKETING

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Global marketing is defined as the process of adjusting the marketing strategies of your company to adapt to the
conditions of other countries. Of course, global marketing is more than selling your product or service globally. It is the
full process of planning, creating, positioning, and promoting your products in a global market.

Big businesses usually have offices abroad for countries they market to. Currently, with the proliferation of the internet,
even small businesses can reach consumers anywhere in the world. If a business chooses not to extend internationally, it
can face domestic competition from international companies that are extending their international presence. The
presence of this competition almost makes it a requirement for many businesses to have an international presence.

There are many benefits of global marketing, when it is done right.

 First, it can improve the effectiveness of your product or service. This is because the more you grow, the more you
learn, and the faster you learn, you become more effective at producing new product or service offerings.

 Second, you are able to have a strong competitive advantage. It is easy enough for companies to be competing in the
local market. But there are very few companies who can do so on the worldwide arena. Hence, if you can compete in
the worldwide market and your competitors cannot, you have become a strong force in your industry!

 Third, you increase consumer awareness of your brand and product or service. Through the internet, consumers can
keep track of your progress in the world.

 Finally, global marketing can reduce your costs and increase your savings. In focusing on other markets, you can attain
economies of scale and range by standardizing your processes – not to mention the savings that you get when you
leverage the internet!

GLOBAL MARKETING STRATEGIES

Global marketing strategies are actually important parts of a global strategy. In order to create a good global marketing
strategy, you must be able to answer: “What I am trying to achieve in an international market?” “What are my
company’s strengths and weaknesses for that market?” “How can I counter challenges in the market?” “What potential
will I have in this market?”

Moreover, a good global marketing strategy incorporates all the countries from all regions of the world and coordinates
their marketing efforts accordingly. Of course, this strategy does not always cover all the countries but should be applied
for particular regions. For example, you can break down regions like North America, Latin America, Europe and the
Middle East, Asia and the Pacific, and Africa.

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Beyond its breakdown per country or region, a global marketing strategy almost always consists of several things: (1)
uniform brand names; (2) identical packaging; (3) similar products; (4) standardized advertising messages; (5)
synchronized pricing; (6) coordinated product launches; and (7) harmonious sales campaigns.

As a whole, these two are the most well known global marketing strategies used by companies expanding
internationally:

 Create a consistent and strong brand culture. Creating a strong and consistent brand that always seems familiar to
customers is a priority for companies growing internationally. With the ever-more rising and expanding internet, brand
structure has become more of a brand culture. To be more specific, it has become more prevalent nowadays that the
brand you support reflects your culture. It can be damaging if you compromise your brand culture. For example, Google
found out the hard way when it launched a self-censored search engine in China, even though China subjects its new
media to government blocks. Google’s brand has been known to make the world access information at anytime. How
can Google set up something in China against its own culture? As a result, customer backlash versus Google was
substantial.

 Market as if there were no borders. Due to the proliferation of digital platforms, brands cannot always adopt different
strategies per country. In a way, due to the internet, companies have to adopt a marketing approach that is more or less
unified.
ii) International Marketing Information System and International Marketing Research

SOLUTION

INTERNAT ONAL MARKETING INFORMATION SYSTEM

An international marketing information system is a continuing interacting structure Of people, equipment, and
procedures designed to gather, sort, analyze, evaluate, and distribute pertinent, timely, and accurate information for
use by international marketing decision makers to improve their marketing planning, execution and control, . moderate
Yes The data and information necessary for effective international marketing may, in most cases, not readily available at
least in the form in which it can be immediately utilized by the company. Therefore, a system for regular collectible of
relevant data and information, analysis and presentation of findings is required for effective international marketing.
Given the nature of international markets, international marketing information system should work on a continuous
basis, unlike market research efforts which nlay4be occasional in nature.. For sound international marketing decisions, a
continuous and timely flow of relevant and updated information is a prerequisite. Most of the enterprises operating in
international markets try to collect general and specific information required by them, basically two sources: (1) internal

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sources; and (2) external sources. Internal sources of the company imply the officials of the company posted the specific
purpose of information gathering and the records, registers and balance-sheet of the firm. Information collected
through internal sources is known to be qualitatively different from that collected through external sources, as the
former collect the information on a continuous basis with specific objectives in view. But collection through internal
sources, particularly when officers and staff have to be appointed and trained exclusively for information gathering,
involves substantial cost, which small enterprises may find difficult to bear. This is particularly true in regard to
international marketing operations since a good amount of informati011 will pertain to overseas markets.

External sources include the following: (i) Banks and financial institutions (both national and international), (ii) Chambers
of Commerce and Trade Associations, (iii) Government agencies in the exporter's and importer's countries, (iv)
Embassies and High Commissions, (v) commercial intelligence services (both international and national), (vi) universities
and research organisations, (vii) international organisations such as' World Bank, WTO, ITC and UN organisations, (viii)
Regional UN organisations such as ESCAe ECLA, etc. and (ix) other regional bodies like OCED. The nature and scope of
international marketing information system depends upon the specific requirements of a particular enterprise. Thus,
different organisations may have different levels of information systems, but essentially all of them are designed for
collection of such information and data, which are vital for the growth and survival of the firm in a rapidly globalizing
business world.

INTERNATIONAL MARKET REAEARCH

International marketing research is a systematic collection and analysis ~f data and information relevant to international
marketing operations. The required data and information may, in most cases, be not always readily available. If it is
available, it may not be in the form in which you require. Therefore, considerable efforts need to be put in by the
company in the collection of relevant information before analysis of the same is undertaken. Thus, international
marketing research may be defined as "the systematic and objective process of collecting, recording and analyzing data
for aid in making international marketing decisions"

International marketing research will cover the following aspects:

 Present and future size of the market for the relevant product(s)/service(s)
 Nature, extent and source of competition
 Consumer likes and dislikes and the reasons for the same

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 Marketing variables such as product, price, promotion, logistics, brand, packaging, etc. o Marketing environment factors
such as social, political, economic, technological, infrastructural, etc.
 Relevant policies and procedures of the importing country and service
 Entry techniques

International marketing research involves use of quantitative techniques, objective analysis and subjective
interpretation of data and information. Depending upon the circumstances and requirements, the volume and depth of
international marketing research may vary. Enterprises may themselves conduct international marketing research or
they may avail of I the services of specialised marketing research agencies.

B) Write short notes on the following:

i) Impact of developments in Information Technology on International Marketing

SOLUTION

As a human being, we all think about our development. As we plan for our development we also have to
decide our working area, or the most possible / approachable area. Every one likes to cover bigger area as
much as he can cover. Initially we had a small area of operation in each segment of life. But as the
technology developed, we become part of global market and now we are able to cope with the market
development at large.

Information technology has made a tremendous development in respect of our approach at a mass level.
It opens the door of several avenues as well as has brought in several threats, which should be analyzed
carefully. Due to development in technology, the information can be transferred from one place to another
in very short span of time, earlier which required lot of time. Transfer of large information and storing
capacity for a long period also has some draw backs, inherent in the process itself. For example
manipulation of message is very easy and it requires small level of technical literacy. It is also observed
that master in a subject may not be many times able to express his views effectively as compared to a
person having less knowledge of subject but more computer literacy, who can make better presentations.
Here the knowledge part of the core subject has been compromised with proficiency with technology. .

Now, to teach one subject several teaching methodologies are available. One has to apply one or two out
of them, which suits him most. If one institute has less number of such teaching technologies it cannot
make its place in the market even if it is very sincere and dedicated for providing a quality education to
the students. Here it leads to pomp and show than the development of value-based teaching.

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It is true that the development of information technology made available number of resources but it also
lead duplicacy as well as piracy. In spite of reading articles or gathering information from different sources
for qualitative research useful for the society, one would like to cut and paste information and other
relevant matter for his advantage, which discourage the habit of reading, being creative and utilizing brain
storming exercises.

Whole economy of the world is vary much dependent upon the technological advancement. This increased
competition in each segment of the market. One very important aspect is that now people are buying
consumer durables not once only but majority of them are replacing the existing product within very short
span of time. Such type of changes in consumer taste can be seen in the Television, Air conditioner,
washing machines, automobiles, mobile industries etc. It leads to the product out of market with in very
short period of time, and it also increases consumerism. Which ultimately decrease the saving and
investment habit of an individual.

This drastic change in the technology has negative impact on society also. Now the theft, piracy, robbery
and other type of hi-tech crimes have grown up very fast. These crimes are committed by young
professional generation because they need handsome money through the application of such technical
advanced skills. This shows negative picture of current education system and also of educated class. It
demoralizes the young generation.

Today's generation is very much choosy than earlier and the reason is that they have more alternatives in
their hands. Certainly, it creates more avenues and dynamism but it also hampers the mental stability.
Today's young generation wants to earn money by hook or crook. It is immaterial for them, how they earn
money. The most important thing for them is only how much money they have. It reduces the quality of
life, which generates the stress, social unrest and mental tension and ultimately no peace in the life. They
are trying to stretch the period of twenty-four hours of a day in more and more productive hour at the
cost of their health. Which has disturbed their natural system of digestion and standard level of health? To
improve the health and physical fitness they need a sophisticated & hygienic environment and medical
physician and surgeon.

Lack of required number of people of desired qualification and skill is also a big problem. Due to fast
change in the information technology, several technical qualifications have also become out of date with in
very short period of time.

The technological development especially in information sector requires a large amount of capital
investment, sophisticated environment and increase in dynamic risk. Dynamic risk means possibility of
loss due to change in environmental factors. First it requires investment in its installation, maintenance

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