INTERNATIONAL MARKETING MANAGEMENT ASSIGNMENT

STUDENT ID: 1231152

LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL ANGLIA RUSKIN UNIVERSITY PETERBOROUGH, UNITED KINGDOM, SEPTEMBER 6 2013

Essay 1

According to De Wit and Meyer (2010), the question facing international marketing managers is whether they should react to global convergence by stressing global standardisation, centralisation and coordination or should they acknowledge and use international diversity by highlighting local adaptation, decentralisation andautonomy. Evaluate the two options in the context of a large multinational company and an SME.

Essay 2

Cultural forces can influence and have a significant impact on international marketing strategies and tactics

Critically assess the extent to which culture impacts and evaluate how marketing research might help a multinational organisation which aims to enter a new international market.

To understand how each force can impact the market is very important understand several

concepts like culture, market research, through theories and concepts.

According to the American anthropologist Alfred Kroeber culture can be explained as

knowledge, beliefs and behavior patterns of a social group. (Kroeber 1952)

Boas states that culture includes manifestations of social habits in a community, reactions of

individuals to the extent that they are affected by the customs of the group in which they live

and the result of human activities to the extent that are determined by these customs Boas

(1952)

Kluckhohn explains that culture is found in life patterns historically created, and also as a

complex notion that guides the behavior of humankind. Kluckhohn (1943) (e.g culture can

be found in both the caveman communicating their ideas by means of fire or the man of the

21st century that sends messages around the earth in a split second.

Ethical and cultural values vary from culture to culture, one cultural force that influenciate is

stereotypes that are created for all people and are also a way to give meaning among

nationalities. For example the French are always stuck up and snooty. The Japanese are

always intelligent ninjas or samurais, the Brazilians are carnivals addicts; football and coffee

lovers. They are part of marketing research and it is impossible to get rid of them.

Another influence to consider on market research is Culture as one of the major

determinants of human behaviours that impacts actions and lifestyle conditions of any

society. In recent times, the growing interdependence between countries and societies, the

intensification of the activities of multinational corporations, or the extension of

communications, may suggest that cultures are approaching, are homogenizing, and this is

used as a guidelines of the global market. Multiculturalism is a reality and along with this

reality we find, its influence in the transformation of the cultural landscape that requires

different societies adapt to new responses and in the business field to address new views

and new solutions connecting properly with new trends and cultural changes. Examples of

how international marketing and culture can adapt to markets, such as Mac Donalds chain

and its varied menu in many countries, Nike clothing chain put its slogan in the youth of the

world and with Finnish Nokia phone communications used and preferred mobile in the

decade of the 90 and 2000

POPULAR CULTURE AND MARKETING

Now, definition of concept of marketing according to Kotler: Marketing is "the social and

managerial process by which individuals and groups meet their needs by creating and

exchanging goods and services

According to Kotler , the starting point of marketing lies in human needs and desires. Human

need is the state in which is felt the lack of some basic necessities, wants and needs are

closely linked to the concept of culture. (Kotler 2011)

Marketing is also a process that includes the identification of needs and wants of the target

market, the development of consumer-oriented objectives, building strategies that create

superior value, the implementation of customer relationship and retention of consumer value

to achieve benefits.( e.g Hapiness is the strategy of Coca Cola, drinking Coca Cola make

people happy)

Marketing seeks to create identity in the individual being a bridge between the society and

the individual." From these needs and desires could consider them as defined by Maslow in

his pyramid of needs: social esteem and self- development with the individuals that make up

the whole of society. In other words, marketing serve consumers as being part of a society

filled with the symbolism of products to promote their own identity. (e.g consumers relate an

apple with a sophisticated computer or the word “M” is related linked by the public with a

restaurant) Within the globalized world, there has been a tendency to frame the international

marketing within a culture in a society.

MARKET RESEARCH AND ITS INFLUENCE

Market research is a process that asks questions, collects data and analyzes information on

that segment of the population to sell products selecting price, specification, promotion,

according to the needs, tastes and abilities of customers, and is done based on the

approach that the company needs and as a process that requires to formulate questions and

to use the correct methods according to the needs of the research approach.

The challenges for researchers and authors is to understand the level of cultural difference

in each country that affects the behavior and beliefs of the people, and determines how

people think, feel, what they eat , how they dress, etc...the values that govern lives and are

an important factor in their decision making when buying , people with similar values have

similar buying patterns.(e.g In Brazil, for example, people are more concerned about their

shape than in health , while Chinese women have little interest when look chubby )

Here it should be noted that cultural research is also valid within a single country, as within

societies there are elite groups governing the behaviour of people or also the variation

depending on geography, climate, religion, etc..

In the historic role that has been assigned to the culture as a regulator and manager – of

prescriptive actions - appears in it a set of rules that give vitality to their consolidation and

social reproduction.

The international marketing research can generate additional research questions, or unique

socio-cultural differences can make such factors as use, color, product design and

packaging, those important details that can change radically from one country to another.

For example, if a company wants to sell clothes in China and launches a wedding dress

western features (such as white) will not succeed, as the Chinese white signifies mourning

and marry brides dressed in red.

In the case of secondary data ( the preexisting they were collected for other reasons and

other organizations or found in the databases of companies) is possible which are not

available in some countries , research on demographic and consumer behavior must be met

and maintained , and researchers must analyze the information they can find that many

times can belong to government policies rather than market research should even face the

problem that the information is on file in physical environment which adds time to the

process of collection .

INTERNACIONALIZATION

It is the planning and conducting transactions across national borders to satisfy the

objectives of individuals and organizations. It is also said that it is the application of

marketing between national markets and others who are outside the country of origin

includes both consumers and private or public organizations.

International Marketing as a discipline is to learn, interpret, evaluate and make decisions on

foreign markets and international marketing planning strategies there are various

dimensions. One of them is the stage of economic development which is the nation. It also

explores factors such as habits of the population, market segmentation social and political

system of the country. (E.G several large U.K corporations earn more than half of the profits

tax profits marketing and production abroad. A company changes from domestic to the

international market for several reasons.

The basic principles of promotion apply equally to that of the domestic marketing.

Regardless of whether a company sells in, Peterborough UK, Latin America, Taiwan or

Germany the marketing program should revolve around a good product that is priced right , it

is promoted well and distributed to a carefully selected market .

When the company raises start an internationalization process does motivated by two

reasons , first because the company sees opportunities in other markets or by the threats in

the labor market, threats can come from a decline in demand local authority or by an

increase in the labour market .

RESEARCH IN INTERNATIONAL MARKETS A PRACTICAL APPROACH FOR COMPANIES

Smoking is considered a more attractive market in India where there is a high number of

smokers and also there is no significant penalty or laws that ban smoking in most public

places, leading to more consumption of snuff and therefore a niche

more attractive.

In places like the United States there is a dig decrease in consumption

because generally in all restaurants and closed places smoking is prohibited

and is well respected by the public.

Each time there is a venture into a new business export or import, there are above variables

it can literally determine achievement as administrator and likewise the success of a

product.

Making a comparation between culturally distinct countries worldwide Depending on the

rotation of the business, several variables will be considered in this example analysis with a

product: Tobacco. This is a good example of how a good marketing research can boost a

firm.

Phillip Morris International is the worldwide tobacco leading company. According to its data

and research Asia has been the best performing segment for Philip Morris over the past few

years, led by volume growth and rising market share

Favorable demographics to drive growth in Indonesia

“Sin Tax” law to dent volumes significantly in Philippines over the coming years

Revenues from Asia expected to grow around 6-8% annually in the long run

Favorable Trends To Keep Indonesia Smoking

The Indonesian market is marked by several trends favorable to the tobacco industry like

high smoking prevalence rate (highest male smoking rate in the world of 67%), relatively

lower cigarette prices and increasing affordability led by rising income levels.  [1] A volume

shift towards premium brands, rampant tobacco advertising and relatively lenient

government policies to reduce or check tobacco consumption have also fuelled the market

growth. [2]

Another factor dampening anti-tobacco moves of the local government is the important role

that the tobacco industry plays in the national economy. The country hosts world’s fifth

largest cigarette manufacturing industry that contributes almost 3% of total cigarettes

consumed globally. The taxation of tobacco companies contributes around 10% to national

revenue and also provides around 10 million jobs directly or indirectly.

However, earlier this year a couple of measures was taken by the local government to

tighten the noose on tobacco companies. Excise tax on cigarettes was hiked by 8.5% and a

law requiring cigarette packets to bear graphic warnings was also introduced. [But relatively

low price elasticity of demand of cigarettes (around -0.3) would imply around 2.5% volume

decline over time due to the 8.5% excise tax increase.

It is believed that the impact of these measures would be more than offset by the country’s

favorable trends discussed above. Hence, we expect the industry volume to grow at a

healthy 5-6% rate in the long run.

Cigarette shipments made by Philip Morris in Philippines made up 29% and 28% of the total

volume shipped by the company in Asia region, during 2011 and 2012 respectively.

However, going forward we see that metric falling significantly due to the historic “sin tax”

law implemented in the country on January 1, 2013. [4]

Overall, Asia remain the key growth driving region for Philip Morris, as volume and pricing

gains in Indonesia are expected to more than offset sharp volume decline in the Philippines.

Moreover, revenue growth from Korea and Pakistan and stable revenues from Japan is

expected to translate into 6-8% long term revenue growth from the region for Philip Morris

International.

the global tobacco giant that sells cigarettes in over 200 countries, manufactures and

markets Marlboro, the number one cigarette brand, which holds more than 9% market share

by volume worldwide (excluding China and USA cigarette volumes). After the spin off from

its earlier parent company Altria in 2008, the company has delivered shareholder returns of

approximately 120%, far more than the tobacco peer group returns of 65% during the same

period, excluding dividends.

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