Download Lecture_Guide - Capital College UK

QCF
Unit Title: International Marketing
Learning Outcome:
1. Understand the complexities and challenges in international and global marketing,
and be able to evaluate their potential and risks.
Please note that the content of this Lecture Guide is listed in its recommended
teaching order, rather than in numerical order.
Assessment Criteria/Indicative Content:
1.1 1.1 Evaluate the challenges and problems of international marketing in a dynamic
and developing business environment.
•
Appreciate the scope, challenges and additional complexities of international
marketing compared to domestic marketing:
World economies / trading blocs / world organisations / wealth and
purchasing power / growing economies.
Impact and dynamics of technology shaping business and consumer
behaviour.
•
Understand the dynamic forces of the international business environment and
their effect on international markets:
Role(s) of PESTLE (political, economic, social, technological, legal,
environmental) factors on internationalisation. Consider the interrelatedness of PESTLE factors: understand how political decisions feed
into economic policy and the legal environment, different legal systems
and how legal factors might constrain international marketing operations.
Copyright / patents.
Evaluation of impact of PESTLE factors. Assess the various opportunities
and risks in the conduct of international business.
Identification of controllables and uncontrollables (mandatory /
discretionary issues) in an international environment;
Barriers to international marketing (tariffs and non tariffs).
Issue of protectionism (political interference – positive and negative
impact).
Existence of invisible barriers.
Move towards barter and counter trade.
Understand the main factors influencing the future development of
international marketing and the global economy. Recognise the key
drivers: globalisation, IT and other innovations, regionalisation,
urbanisation, multinationalisation.
Examiner’s tips:
Lecture 1 is largely a familiarisation exercise – have you thought about how you are
going to organise all the evidence you are going to collect?
Ensure you start reading quality journals / newspapers and/or bookmarking electronic
resources. Think about how you will collate all the information so it is easier for exam
revision. Start keeping a ‘glossary of terms’ – have you tried creating your own
dictionary?
QCF
Unit Title: International Marketing
Learning Outcome:
1. Understand the complexities and challenges in international and global marketing,
and be able to evaluate their potential and risks.
Assessment Criteria/Indicative Content:
1.2 Evaluate the opportunities and risks of international marketing in relation to
company objectives and resources.
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Testing in relation to company resources and downside of long-term risk.
Methods used to assess risk, e.g. type of government, political persuasion,
member of regional group.
Consider the value of an international marketing information / decision
support system:
Understand why information is needed (to determine market demand /
potential; market attractiveness – competitiveness; return on investment –
marketing considerations). Stress testing (feasibility of entry / viability /
acceptability of brand / product / service portfolio).
Understand what kind of information is needed – quantitative / qualitative;
continuous / ad hoc; forecasting / trend data.
Explain the structure of an international marketing information system (IMIS):
Components: company data / market(ing) intelligence / market(ing)
research / management science.
Understand the principles and problems of designing and implementing
an IMIS (sequence of information gathering / research process).
Develop competence in the use of international and global marketing
research (desk / secondary and primary data collection);
Understand the factors involved in undertaking market(ing) research
across a number of countries (problems and how they may be
overcome / limitations of information collected / alternative methods
and data).
Understand what is involved in commissioning and evaluating
research from third party providers such as agencies (host country /
overseas).
1.3 Assess the reasons why organisations wish to enter international markets and
their consequent expectations.
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•
Discuss the important factors in the decision to enter international markets:
Drivers and Inhibitors (from company and market – industry / consumer)
perspectives.
Rationale for market entry (internal / external; growth / expansion).
Assess a company’s expectations of success in international business:
Clarify ‘success’ (financial / brand / performance / sustainability –
longevity).
Apply the expectations to different types of companies (small, medium,
large; product / service; commercial / not-for-profit).
Examiner’s tips:
Begin compiling examples of what different types of companies are doing in
international marketing (and why).
Have you tried looking at some company websites (include some research agency
websites) to get a sense of what they are doing in international marketing? Indeed
you may want to start bookmarking some of these too!
QCF
Unit Title: International Marketing
Learning Outcome:
2. Know how to prepare and implement international marketing strategies and plans.
Assessment Criteria/Indicative Content:
2.1 Explain how to produce a marketing plan to cover the alternative strategies
available for international marketing strategies and plans.
•
Determine the need for a strategic international marketing plan:
Know how to formulate an international marketing strategy from
developing a corporate generic strategy (differentiation or focus).
Relate the chosen strategy to developing a sustainable competitive
advantage:
Recognise the existence of discrete segments across national
boundaries (regardless of GDP...) and know how to develop them into
successful / profitable business opportunities.
Follow through from segmentation, targeting to positioning (capturing
the mind of the customer).
•
Evaluate the factors which influence the selection of marketing strategy:
Develop appropriate products and services for international markets –
new product / service development and adaptation (suitability for intended
market).
Understand the nature of the product life cycle and be able to use this in
market analysis.
Understand the concepts of diffusion of an innovation (change) and
product / service adoption and apply this to ‘new’ product and service
ideas internationally (degree of newness – congruent, continuous,
dynamically continuous, discontinuous).
Analyse product components (core, packaging services) and show how
modifications are necessary to succeed in different markets.
•
Examine the various generic approaches to strategic planning in international
markets:
Formulate a planning process.
Use a planning structure from analysis and screening, adapting the
marketing mix, developing the plan to implementation and control (use
frameworks / templates).
Examiner’s tips:
You might consider revisiting some of what you learnt in studying marketing and then
start looking at how some of the concepts / theories / terms / terminology apply to
international marketing.
Make sure you know what an international marketing plan looks like and what
information you need for each section.
QCF
Unit Title: International Marketing
Learning Outcome:
2. Know how to prepare and implement international marketing strategies and plans.
Assessment Criteria/Indicative Content:
2.2 Evaluate the requirements of different market entry strategies.
•
Analyse the alternative entry strategies for international markets:
Differentiate between the wide variety of options from simple exporting
(indirect exporting) to greater / deeper levels of involvement (direct
exporting) through to the creation of collaborative relationships and
franchising and licensing through to Joint Ventures and strategic
alliances:
Be able to outline the relative advantages and disadvantages of each
of the entry modes.
Understand the nature of international collaborative relationships and
strategic alliances (distinguish between the different types / show by
example successes and failures and what contributes to this).
•
Discuss the methods by which market entry strategies and plans can be put
into practice.
Examiner’s tips:
Have you thought about designing a table that highlights what each market entry
strategy is, the advantages and disadvantages attached to it? Include an example of
how a company uses this method and also why it does not use other methods.
Have a look at www.quick.mba.com, www.marketingteacher.com,
www.internationalmarketentry.com, www.strategy-business.com,
www.mckinseyquarterly.com or any of your bookmarked sites to learn what the
modes are and how companies use them.
You may wish to consider practicing the development of a strategy (perhaps as an ingroup activity) such as introducing iPods to developing nations.
QCF
Unit Title: International Marketing
Learning Outcome:
2. Know how to prepare and implement international marketing strategies and plans.
Assessment Criteria/Indicative Content:
2.3 Assess the importance in international markets of such operational factors as
segmentation, targeting, positioning and standardisation.
•
•
Compare the commercial benefits of standardisation versus adaptation in the
international marketing mix:
Debate whether a truly global strategy is feasible (case for and against
globalisation).
Leveraging competitive advantage (economies of scale, transfer of
experience and know-how).
International Branding;
Creation of a uniform international image / development of an
international brand.
International brand portfolios / hierarchies (corporate / product /
service dimensions).
Concept of ‘globalisation’ – tension between localism and globalism
(link to segmentation, targeting and positioning).
Drivers for standardisation (and inhibitors) – advantages / disadvantages.
Ensure you distinguish clearly between a strategically oriented international
approach as opposed to a more operational (inbound / outbound) focus.
Examiner’s tips:
There are some core concepts used in international marketing – one of which is
standardisation / adaptation - referred to directly / indirectly in many of the lectures
and linked to other issues (e.g. market convergence / market diversity; marketing mix
modification).
Consider creating a list as it is very important to ensure you understand these
concepts and can apply them in a variety of contexts.
QCF
Unit Title: International Marketing
Learning Outcome:
3. Understand the organisation and management of international marketing
operations.
Assessment Criteria/Indicative Content:
3.1 Examine the organisational structures appropriate to international marketing.
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Assess the types of organisational structures prevalent in international
marketing:
Understand different organisational structures appropriate to international
marketing and their advantages and disadvantages;
Functional / product / geographical / matrix.
Export department / international division / subsidiary.
Reflect on the crucial importance of the appropriate organisational
structure - consider the growth in collaborative relationships (and argue
the case).
Compare the systems of centralisation and decentralisation in international
business:
Express the relative advantages / disadvantages of each.
Explain how international marketing management differs from global
marketing.
Discuss the dimensions of domestic market extension, multi-domestic and
global marketing concepts.
3.2 Discuss the issues relating to the management and control of international
activities.
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Explain the requirements for the effective management and control of
international marketing activities;
Be able to monitor and control international activities. Foundations for
future planning (evaluation based on RACES criteria).
Be able to formulate necessary contingency plans (link to risk).
Assess the problems which may result from variations in company objectives,
business size and differing international markets. Demonstrate the benefits
and the pitfalls of globalising the company in terms of quality (Total Quality
Management – TQM), cost containment and international sourcing.
Evaluate the potential ethical issues in international markets.
3.3 Analyse the management styles required by different international economies
and cultures.
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Examine the management styles appropriate to different international
economies and cultures.
Understand ethnocentric, polycentric, region-centric and geocentric
approaches to marketing strategies (strengths / weaknesses):
Know when to apply and the relationship to cultural differences.
Understand the Western approach to business is not universally accepted acknowledge the existence of other management styles.
Discuss the issues of management selection and training in international
marketing.
Examiner’s tips:
Have you accessed some global company websites yet (www.unilever.com;
www.sony.net) and looked at their organisational structures, their brand / product /
service portfolios?
You might also like to read reference journal articles on the subject of management
styles / cross-cultural management (focusing on your country / countries of interest)
QCF
Unit Title: International Marketing
Learning Outcome:
4. Understand the marketing opportunities presented by emerging markets, and the
potential problems of cultural and related factors.
Assessment Criteria/Indicative Content:
4.1 Assess the importance of international marketing in developing and emerging
economies.
•
Examine the importance of emerging and less-developed economies in
international marketing:
Recognise and establish that countries are at different stages of economic
development (flaws in ‘conventional / economic’ distinctions).
Recognise the characteristics that distinguish emerging markets (use
examples from BRIC countries).
•
Analyse the function of multinational trading groups and international
agencies and organisations:
Know the existence of major regional grouping (recognise role, growth
and contribution in driving international business and marketing).
Appreciate the role and function of international agencies and
organisations, e.g. IMF, World Bank, WTO / GATT (recognise role,
function and contribution to global business / world governance).
•
Outline the different market strategies required in emerging markets. Develop
capabilities in opportunity recognition for developing and emerging markets
(segmental analysis).
Examiner’s tips:
There are always articles published on emerging markets and they feature regularly
in news items – gather your data / information and incorporate it into your files.
You may – if you have not already done so - want to start working through past
examination papers as this will ensure that you are able to answer the questions
asked in the time allocated.
QCF
Unit Title: International Marketing
Learning Outcome:
4. Understand the marketing opportunities presented by emerging markets, and the
potential problems of cultural and related factors.
Assessment Criteria/Indicative Content:
4.2 Explain the significance of cultural and related factors in international marketing.
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Study the definitions of culture.
Explain the importance of cultural and other local factors in the performance
of international marketing:
Be able to undertake cultural and cross-cultural analysis (use of cultural
notebooks);
Self reference criterion (SRC) – impediment to international success,
i.e. the unconscious.
Elements of culture (language, values and attitudes, social institutions,
manners and customs, education, religious beliefs, legal frameworks,
aesthetics ...).
Low to high level cultures.
Work of Hofstede on cultural dimensions (power distance, uncertainty
avoidance, individualism and masculinity).
Understand cultural dynamics (and business custom and practice) and
the impact on international marketing strategy.
Evaluate the changes in the cultural environment which affect the demand for
products and services:
Cultural sensitivity (and how to handle it).
Cultural similarities (often an illusion) and sub-cultures.
Countries are not immune to cultural change and culture itself is
constantly changing.
Innovation and globalisation are forcing the pace of cultural change.
Examine business customs and practices in international marketing policies:
Appreciate that management objectives, aspirations and practices vary by
country (business hours, holidays, security, mobility, personal life, power
and of course gender and ageism).
Negotiation practices vary across cultural boundaries.
Business ethics also vary extensively (practice of bribery, corporate
hospitality and political payments).
Understand the growing importance of ethics in international marketing
and how it might vary country by country.
Evaluate the impact of ethical issues on marketing.
Analyse factors that influence corporate social responsibility as a
marketing tool (inside and outside the organisation).
Examiner’s tips:
You may find working in small groups (in the classroom or virtually through
Facebook, blogs etc.) and exchanging information, expressing views and considering
questions a good way of learning – especially on cultural issues.
Be careful to stay focussed on International Marketing issues – look at what the
implications are for a company!
QCF
Unit Title: International Marketing
Learning Outcome:
5. Understand the requirements for international physical distribution management
and channel strategy.
Assessment Criteria/Indicative Content:
5.1 Examine the operation of an international business logistics system.
• Discuss the concept of international business logistics.
• Analyse the constituent parts of an international logistics (or physical
distribution management - PDM) system. Understand the workings of an
international business logistics / PDM system.
5.2 Assess international channels of distribution and the issue of channel selection
and use.
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Evaluate the selection and implementation of international channels of
distribution:
Understand the variety in distribution channels and how they affect cost
and efficiency in marketing;
Be aware of the advantages and disadvantages of alternative channel
choices (intermediaries / middlemen).
See that in addition to the traditional choices, new channels are
pioneered by IT (eliminating the middleman).
Know how to relate the channel choice to the market (infrastructure) and
the selected market entry strategy (market coverage / target market).
Examine the environmental conditions which affect alternative distribution
channels in international markets.
5.3 Discuss the technical aspects of international business and the role of service
providers.
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Analyse the issues of freight documentation, including legal, financial and
insurance considerations. Understand the main technical aspects of export
trade mechanics and logistics including necessary legal and other
documentation (e.g. letters of credit, bills of lading, bills of exchange, health
certificates), transport alternatives and their cost / benefit, export guarantees
and sources of export finance including government sources and alternative
insurance arrangements and contracts appropriate to logistics.
Appraise the methods for the physical movement of goods worldwide.
Assess the role of freight forwarders and other export service providers (e.g.
import / export agents) in international marketing:
Know which to select and justify choices.
Know how to locate, select and motivate channel members.
Recognise the role members can / cannot play, coverage, continuity,
control.
Recognise the importance of the contract. Understand alternative export
contracts e.g. FOB, FAS and CIF.
Have a grasp of what documentation may be required to export goods
and the different options.
Examiner’s tips:
Be careful not to get confused with market entry issues, and think about what a
company needs to do to make its products / services available / accessible in the
market and to support their international marketing activities.
QCF
Unit Title: International Marketing
Learning Outcome:
6. Understand the financial aspects of international marketing.
Assessment Criteria/Indicative Content:
6.1 Analyse the issues of financing international operations and pricing policies in
international markets.
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Examine the methods of financing international business:
Know the components of international marketing that create the need for
increased capital.
Understand what additional costs are involved in entering a new market.
Evaluate the factors which influence the determination of an international
pricing policy:
Understand alternative pricing policies for international markets and the
driving forces affecting price;
Know how price can be used as a competitive tool in international
markets.
Identify pricing pitfalls directly related to international marketing.
Appreciate the potential of unconventional pricing approaches including
barter agreement (counter trade agreements) and swaps. Know how to
control pricing in the above and other activities such as parallel importing
and grey markets.
Appreciate the need to be able to ensure timely international payment;
Understand the mechanics of payment.
Know the financial implications of lags/delays in payment.
6.2 Assess the financial risks of international business.
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Discuss the potential financial risks involved in international business
operations. Consider getting paid (and the difficulties in getting paid),
repatriation of profit, currency fluctuations, additional capital requirements,
political interference.
Assess the methods of managing financial risks:
Understanding foreign exchange options – buying FOREX options.
Aspects of future hedging. Offsetting of risk by the forward selling of a
currency in danger of devaluation for another stable monetary unit or
buying a currency at a ‘future’ price.
Identify the various conditions in different markets which may increase
financial risk.
6.3 Examine the sources of financial assistance and associated insurance
arrangements for international operations.
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Assess the sources of financial assistance available to exporting companies,
including government and international development agency initiatives. Know
public sources available to assist in venturing overseas: export credit,
development loans, debt-equity swaps etc.
Examine the options inherent in foreign exchange dealings.
Appraise international insurance arrangements.
Examiner’s tips:
You may find it helpful to read the finance / business sections of quality newspapers
(or listen or watch business / finance programmes) to appreciate the issues of
currency fluctuations and changing economic circumstance in a variety of countries.
QCF
Unit Title: International Marketing
Learning Outcome:
7. Understand how to develop international sales and marketing communications
strategies.
Assessment Criteria/Indicative Content:
7.1 Evaluate the management and operation of selling in international markets.
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Assess the role of personal selling and the management of sales operations
in international marketing:
Consider the principles and problems of managing an international sales
team.
Understand the importance of relationships in international selling.
Understand the attributes of international sales personnel and how to
manage a multicultural sales force.
Examine the issues of recruitment, selection and training of international staff:
How to handle the problems unique to selecting and training foreign sales
staff.
Appreciate the problems of expatriate sales staff including family and reentry issues.
Appraise the nature of cross-cultural negotiations with customers, agents and
suppliers:
Understand the importance of skill in a foreign language while negotiating
internationally.
Explain the importance of intercultural preparation.
Recognise the wider role and responsibility of the company sales.
personnel when operating internationally and that skills other than
negotiating are necessary.
7.2 Explain the nature and complexities of conducting communications in
international markets.
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Assess the problems of operating a marketing communications policy in
international markets:
Understand the role of both above and below the line forms of
communications in international markets (the mix);
Balance expenditure between above / below the line.
Know the degree to which a campaign may employ standardisation
versus adaptation.
Evaluate the role played by sales promotions and its relevance in the
selected market (often greater than advertising).
Know that push strategies may be more effective than pull strategies.
Know how to evaluate local market characteristics that affect the
advertising and promotional mix.
Make necessary adjustments to the mix as a result of different markets,
customers, competitors and legal environments with special regard to
culture.
Recognise that advertising is a form of coded message and encoding and
decoding are a cultural perception.
Discuss the importance of different types of promotional media
communications in international markets:
Be able to carry out media planning and evaluate the availability and
effectiveness of international media;
Recognise the key considerations in planning media campaigns:
availability, cost, coverage and suitability.
Pay attention to the issues impacting on advertising effectiveness, e.g.
comparative advertising, language limitations, cultural diversity and
customs, production costs and production limitations.
Understand the range of choice may be limited (or greater), the data
for planning purposes may be limited as might be the evaluation of
media effectiveness.
Examiner’s tips:
You might like to study advertising in overseas markets using the world wide web
(distinguish differences).
You could also surf www.youtube.com to help you understand some of the
differences (but always try to think about what is behind the differences, why do
international marketers choose to put their advertising across in a different way?).
QCF
Unit Title: International Marketing
Learning Outcome:
7. Understand how to develop international sales and marketing communications
strategies.
Assessment Criteria/Indicative Content:
7.3 Assess the role of the Internet and related technologies in international sales and
communications.
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Evaluate the role of the Internet and new technologies in modern international
sales and communications programmes:
Consider both communication and transaction perspectives (including
security issues).
See the Internet as an important distribution method.
View the Internet as one aspect of e-commerce, across all types of
business (consumer, industrial and services).
Explain the ways e-commerce cuts costs (reducing procurement costs,
improving supply chain management, tighter inventory controls).
View internet advertising as interactive, customised, virtual and instantly
accessible.
Recognise the growing significance and role of IT in communication.
Analyse the different environments created for sales and communications
policies in international markets by the development of the Internet and
related technologies.
Examiner’s tips:
You may be able to talk to some people who have worked for different companies
overseas in a sales role and understand the issues they faced and how they were
overcome.