Download IMS June 2015 Exam Marking Scheme – Final

International Marketing Strategy
3 June 2015
Marking Scheme
This marking scheme has been prepared as a guide only to markers. This is not a set of
model answers, or the exclusive answers to the questions, and there will frequently be
alternative responses which will provide a valid answer. Markers are advised that, unless a
question specifies that an answer be provided in a particular form, then an answer that is
correct (factually or in practical terms) must be given the available marks.
If there is doubt as to the correctness of an answer, the relevant NCC Education materials
should be the first authority.
Throughout the marking, please credit any valid alternative point.
Where markers award half marks in any part of a question, they should ensure that
the total mark recorded for the question is rounded up to a whole mark.
Marker's comments:
Moderator's comments:
Mark:
Moderated mark:
Penalties applied for academic malpractice:
Final mark:
Answer any THREE (3) questions
Marks
Question 1
Critically assess the difficulties and benefits of accessing a multicultural
marketplace.
Candidate may use the following terms in their answer but must show the
correct understanding of them:
 Multicultural marketing (2 marks)
 Ethical marketing (2 marks)
 Cross cultural marketing (2 marks)
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Generally all three terms relate to a similar topic area.
Candidates need to show in their answer that such multicultural markets do
require a more intense level of preliminary market research. (3 marks)
Such research might often require new ideas and concepts in order to gather
the necessary data. (3 marks)
The entry into markets deemed multicultural often requires a new approach to
marketing concepts as well. (3 marks)
The marketer managing multicultural markets needs to consider a much more
detailed spectrum of geographical detail: Area, Region, Country, Global
position. (6 marks)
Candidates will need to be able to perceive multicultural marketing as the need
to identify such segment differences as: language, celebrations, religions,
traditions and other diverse differences particular to the addressed segment. (6
marks)
In their critical assessment, candidates might consider the negatives: the
additional efforts, resources and costs of multicultural marketing (3 marks) and
assess against the positives: a driver for innovation in the business, a builder
for understanding global markets, business growth in a multicultural
marketplace is often quicker and greater (3 marks).
Total 33 Marks
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Marks
Question 2
You are employed in a business that has progressed from being a domestic business
to an international business. The business is expected to become a global business
in the next six months.
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Write a short report to the board of directors of the business that critically assesses
the benefits and any problems or difficulties that you believe can be expected from
the move from international to global business.
Candidates should be able to identify the benefits of the global marketplace as
being:
 Extended product and service life due to a wider marketplace. (3 marks)
 In a product marketplace, reduction in production peaks and troughs
and, in the service marketplace, a more stabilised business. (3 marks)
 Much more opportunities to innovate and increase business and profits
as a result of global interests in a business innovating products and
services. (3 marks)
 In being a part of the global marketplace, businesses learn how to
compete and often even gain on their competitors. (3 marks)
There is greater need to conduct research and to plan and implement countryby-country international marketing strategies and plans. (3 marks)
There is a need to not only sell the products/services but also build the brand
globally with the necessary financial budget to allow for this. (3 marks)
Going global as a business requires planning and control, as expanding
globally too quickly can be just as damaging to a business as it can be
domestically. (3 marks)
Many businesses could enter the global marketplace but do not as they see the
risk as being too high and dangerous. This then holds them back from the
potential of business growth and greater profitability. (6 marks)
The need to manage and control globally can also have two effects on a
business:
 once in the global marketplace they do not have the skill sets to manage
their business in the global environment (3 marks)
 the business and its manager fear managing a larger global business
and as a result do not go global and again lose any potential growth and
profitability (3 marks)
Total 33 Marks
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Marks
Question 3
a)
The international marketing process often involves five stages or phases. These
are often designated as follows:
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Phase 1 – No overseas marketing – only domestic business
Phase 2 – Infrequent foreign marketing
Phase 3 – Regular foreign marketing
Phase 4 – International marketing
Phase 5 – Global marketing
Critically evaluate each of the stages individually and the transition from one
stage on to the next in the international marketing process.
International marketing usually progresses through a series of phases or
stages as a business moves from being a domestically-based business to
becoming more international and ultimately a global business.
Phase 1 – no direct foreign marketing – no strategy exists to seek
international business. A business’s products/service may reach foreign
markets often via direct contact with the business. The stimulus to move
into an international market often comes from a random direct order from
an overseas buyer. (4 marks)
Phase 2 – infrequent foreign marketing – a business may use international
markets as a source to dispose of over-production or over-stocking.
However, it is very spasmodic and temporary in nature. There is no focus
on maintaining an ongoing presence in any country market. If domestic
business is active and sales are good, the company often simply withdraws
from the international market again. (4 marks)
Phase 3 – regular foreign marketing – the business now ensures
production and facilities to address overseas country markets on a
continuing basis. At this stage a channel strategy may be developed with
international intermediaries or the business’s own sales team. The basic
focus of the business remains their domestic marketplace. Strategic plans
and investment occur at this stage in order to permit international business
growth. The demands of international and domestic business are often
inclined to equate at this stage. (4 marks)
Phase 4 – international marketing – at this stage there is a full commitment
to international business. Production and the necessary resources, both
human and mechanical, are planned and installed, to permit full-scale
international business. It is also common for a business at this phase to
become much more reliant upon international sales and revenues. We often
call a business at this stage international or multinational. (4 marks)
Marking scheme for Question 3(a) continues on next
page
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Marks
Phase 5 – global marketing – at this final phase a business progresses
beyond simply a range of oversea country markets to ensuring that its
products/services are available anywhere in the world, including their
original domestic market. The business often develops international
marketing strategies that focus upon regions of the world. The business
also develops a global reputation, together with a set of market
characteristics along which products and services are researched and
developed. A business also tries to ensure that it operates globally and
also 'glo-cally' culturally with the necessary efficiencies. (5 marks)
b) Critically assess how you would recommend the use of international market
research to identify, assess and evaluate the development from one phase to
another in the five phases/stages discussed in part (a).
Candidates will need to consider the research necessary for a business to
progress from one stage to the next.
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Historically this research will become more extensive and in-depth the
further a business progresses through the five phases/stages.
Candidates should consider the depth and necessity of research in order
for managers to have the relevant levels of business intelligence in order to
make suitable strategic and planning decisions. (2 marks)
Candidates might consider the research process along the lines of
researching so as to enable:
 new market overviews (2 marks)
 new market analysis (2 marks)
 new market entry methodology (2 marks)
 new marketing and business strategies and plans (2 marks)
 new operational plans and needs (2 marks)
Total 33 Marks
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Marks
Question 4
The past few years have seen service-sector businesses move into the global
marketplace.
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Using ONE (1) example service-sector business of your choice, critically evaluate the
barriers to success in the international service-sector marketplace. Critically assess
the particular international marketing strategies suitable for service-sector
businesses that you would recommend the use of.
The candidate offers critical evaluation in their answer. (3 marks)
Suggested barriers to service success:
 The requirement of specific services and service-levels in each country –
resulting in non-standardised services (2 marks)
 Local and regional regulations (2 marks)
 Legal factors – which may affect the sale of the service in a country (2
marks)
 Access to the required quantities and skill-levels of employees (2 marks)
 Language and communication skills of service employees (2 marks)
 Access to the required level of ICT (Internet and Communications
Technology) (2 marks)
 The levels of service requirement in each country (2 marks)
 Service characteristics: intangibility, perishability, heterogeneity,
inseparability. (2 marks)
 Acceptance of and purchase of the service by customers. (2 marks)
Possible strategies:
 Development of worldwide brands, delivery of consistent service and
quality levels (3 marks)
 Specific market entry of the service into each country market on an
adaptation of service basis so that services meet country regulations
and law but service delivery consistent. (3 marks)
 Joint venture market access strategy with another service provider. (3
marks)
 Other suitable strategies offered and detailed by the candidate. (3 marks)
Total 33 Marks
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Marks
Question 5
The global marketplace has led to considerable and identifiable changes to the global
consumer and their resulting behaviour in making purchases.
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Critically assess some of the causes for these changes and identify some of the
resultant changes in global consumer purchasing behaviour.
Candidates are expected to offer critical assessment. (3 marks)
Candidates might explore the following causes:








Access to worldwide media and programming offers consumers access
to the global market – satellite television/American television series. (4
marks)
The Internet – allows purchase of goods/services from anywhere in the
world. (4 marks)
The major improvement in education and students moving across the
world to study leads to new market access and word of mouth plus
actual product/service purchased being wanted by new customers. (4
marks)
Social networking leads to communication, pictures and buyer
preferences being freely discussed and exchanged. (4 marks)
The growth of global recognisable products/services and global brands –
where the product/services has been often slightly changed from its
original to address local market and buyer needs and wants. (4 marks)
Cultures have in themselves changed and modernised allowing for
access to modern brands/products/services and creating new
enthusiastic buyers in new markets. (4 marks)
Access to travel for new global buyers leads to buyer accessing not just
the travel but also the other elements associated with travel, such as
hotel accommodation, for example. (4 marks)
Greater standardisation of products ensures that these products can be
shipped to new markets to satisfy waiting customers. (4 marks)
Maximum of 33 marks.
Total 33 Marks
End of paper
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Marking note
Add 1 mark to original mark out of 99 to produce final mark out of 100 to be recorded.
However, if the candidate has failed to score any marks in the paper (has scored 0 marks),
do not apply this additional mark.
Learning Outcomes matrix
Question
Learning Outcomes
assessed
1
2
3
4
5
1
2
2, 3
5
4
Marker can differentiate
between varying levels of
achievement
Yes
Yes
Yes
Yes
Yes
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Grade descriptors
Learning
Outcome
Critically assess
cultural diversity
and the effect
upon
international
marketing
Pass
Merit
Distinction
Demonstrate an
adequate awareness
of issues associated
with the subject and
make some
appropriate
judgements;
Demonstrate some
sound critical skills
Critically
appraise
marketing in
local and global
markets
Demonstrate a
reasonable
understanding and
assessment of the
subject; Demonstrate
some sound critical
skills
Provide examination
of the subject with
some suitable
examples and
references
Demonstrate a sound
awareness of issues
associated with the
subject and make
consistently
appropriate
judgements;
Demonstrate
consistently sound
critical skills
Demonstrate a strong
understanding and
assessment of the
subject; Demonstrate
consistently sound
critical skills
Demonstrate a
detailed awareness of
the complexity of
issues associated with
the subject and make
highly appropriate
judgements;
Demonstrate highly
developed critical
skills
Demonstrate a
consistently strong
understanding and
assessment of the
subject; Demonstrate
highly developed
critical skills
Provide consistently
critical and detailed
examination of the
subject with innovative
use of highly
appropriate references
Demonstrate a
detailed awareness of
the complexity of
issues associated with
the subject and make
highly appropriate
judgements;
Demonstrate highly
developed critical
skills
Demonstrate a
detailed awareness of
the complexity of
issues associated with
the subject and make
highly appropriate
judgements;
Demonstrate highly
developed critical
skills
Examine how
market research
is conducted
internationally
Critically assess
buyer behaviour
and market
targeting in the
international
context
Demonstrate an
adequate awareness
of issues associated
with the subject and
make some
appropriate
judgements;
Demonstrate some
sound critical skills
Critically assess
the methods
used to enter an
international
market
Demonstrate an
adequate awareness
of issues associated
with the subject and
make some
appropriate
judgements;
Demonstrate some
sound critical skills
Provide detailed
examination of the
subject with adequate
use of appropriate
references and
examples
Demonstrate a sound
awareness of issues
associated with the
subject and make
consistently
appropriate
judgements;
Demonstrate
consistently sound
critical skills
Demonstrate a sound
awareness of issues
associated with the
subject and make
consistently
appropriate
judgements;
Demonstrate
consistently sound
critical skills
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International Marketing Strategy
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