Marketing in an International Environment
ATMC Study Guide
This workbook belongs to:
The rationale for international marketing & globalisation
To develop an understanding of the foundations and concepts of international marketing and globalisation.
It is almost impossible for domestic organisations to consider their domestic markets and domestic competition in isolation from the global world. If they fail to look beyond their national boundaries, they may unknowingly lose marketing opportunities to competitors who do. Worse yet, foreign competitors will encroach on their hard-earned market position at home so fast that it may be too late for them to respond. International markets are so intertwined that separating international from domestic business may be a futile mental exercise. It is therefore imperative that marketers have an understanding of the how globalisation has and continues to shape our world and the impacts and context it creates for international marketing activity and strategy.
This week s lecture will therefore provide some foundation for the course covering the key concepts that underpin international marketing and discuss the phenomenon known as globalisation.
In week 1 we will also introduce the course overall and discuss the assessments required. There are assessment criteria sheets and guides also available in Blackboard for you.
1. Readings: Chapters 1 and 11 of the Text (Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia).
2. Interesting article to gain a perspective on globalization, this early seminal piece by Levitt is useful;
Levitt, T 1983, Globalization of Markets, Harvard Business Review.
Another good seminal article to consider is;
Porter, M, 1990, “The Competitive Advantage of Nations” Harvard Business Review.
3. Consider the question…”Why do companies decide to enter foreign Markets?”
4. Also…” globalisation…the good and the not so good?” Consider the pros and cons that globalisation brings to nations and their peoples…who are potential winners..and losers?
International market environment: Avoiding the pitfalls of the international economic, political and legal environment.
To develop an understanding of the macro environment within which international marketers operate.
Virtually no country is immune from the economic events in the rest of the world. It is almost as if participation in the international economy is an essential ingredient for economic growth and prosperity. However, participation is not without its risks.In this week s lecture we will explore the macro environment and how it impacts international marketers particularly with regard to some of the pitfalls it may present. This will therefore include a review of the political and legal environments as well as the associated economic and financial environments that international businesses operate in.
1. Reading: Textbook Chapters 2 and 3.
See Blackboard for additional readings/clips.
Article: Impact of the high Australian dollar – tangible examples of how the economic/financial environment impacts business.
2. This week s activity for you to undertake in your own time involves the following case study from Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia.
Read the case study on p.69 of the text (Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia) and consider the discussion questions at the end of the case…
Apple vs Samsung-taking the legal battle beyond markets and the boardroom. Text p.69.
Catering for the social and cultural environment of international marketing.
Learning Objective 3a:
To consider how social and cultural factors influence the activities of international marketing.
Elements of culture likely to matter to international marketers include identity, material life, language, social interactions, aesthetics, religion, education and values. These elements influence the consumer behaviour and responses of various cultures to marketing. Hence it is critical for an international marketer to have an understanding of culture if they are to succeed when marketing globally.
1. Reading: Textbook Chapter 4.
Also a useful paper….
Sherriff, G, Brewer, P & Liesch, P, 2010, The influence of regionalisation and cultural distance on the direction of exports, Journal of Asia-Pacific Business, 11 2: 78-98.
2. In your own time consider the following case study and the associated questions at the end to extend your thinking on international expansion from the text, Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia.
LJHookers reach to China (page 154 text).
Technology and change in international marketing.
Learning Objective 3b:
To explore the way that technology impacts the international marketing environment.
The Internet economy is essential to Australia’s productivity and global competitiveness (Department of Broadband, Communications and the Digital Economy, 2011). While an increasing number of Australian businesses are using the Internet for international business activity, key statistics indicate that only a relatively small share of businesses are taking advantage of the Internet for international business operations (Department of Innovation, Industry, Science and Research, 2011). Although the proportion of Australian businesses with Internet access rose to 91.2% in 2011 (Department of Broadband, Communications and the Digital Economy, 2012), less than half of Australian businesses have an online Internet presence, such as a website. Firms utilising the Internet are more productive and add value to the business at a higher rate than those businesses without an Internet presence (ABS, 2010).
1. Reading: Textbook Chapter 5.
Here are some varied additional technology readings you may find useful;
The e-marketing mix: A contribution of the e-tailing wars, Kalyanam, K & McIntyre, S 2002 Academy of Marketing Science
Is e-marketing coming of of age? An examination of the penetration of e-marketing and firm performance, Brodie,R et al. 2007, Journal of interactive marketing
Strategy and the Internet Porter, M, 2001, Harvard Business Review.
Users of the world unite!The challanges and opportunities of social media, Kaplan and Haenlein, 2010 Business Horizons.
2. In your own time consider the following case study and the associated questions at the end to extend your thinking on how the internet impacts international business. From Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia.
“Shoes of prey- a step ahead the competition”….page 197 of the text.
Week 4 and 4b
Researching international markets and international market selection and entry.
Gain an understanding of the key issues and importance of researching international markets and market selection and entry.
Although the steps in a research program are similar for all countries, variations and problems in implementation occur because of differences in cultural and economic development. It is a necessary step to undertake international marketing research to determine to most efficient and viable modes of international market entry and development.
For Australian companies looking to export the government has established AUSTRADE to assist them in selecting and executing successful international trade and expansion strategies. When making decisions about markets Austrade is there to help, go and have a look...it may be useful for your research in assessment 1…
1. Reading: Textbook Chapters 7 and 8.
2. In your own time consider the following short case studies from the text (Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia) and the associated questions at the end of them to extend your thinking on international market selection/entry strategies.
“Tourism New Zealand- using research to activate the ‘Active Considers” …page 261 of the text
“Walmart s expansion into Africa- not business as usual but a leap into unknown territory”…page 302 of the text
Modifying products and pricing decisions for international markets
To examine the need for, and the extent of, product modification in international marketing.
In order to meet the needs of international customers, you may need to adapt your product to suit individual or regional markets. You will also need to establish a brand that can be applied globally or tailored to fit into local markets. Your success internationally depends on how well your product or service is received by customers in each market. Many organisations make the mistake of simply taking their successful product out of their domestic market and dropping in a foreign market.
1. Reading: Textbook Chapters 13 and 14.
Is this the best TED Talk ever? Branding and international marketing.
In your own time consider the following case study on page 478 of the text (Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia) and the associated questions at the end…..
“The sweet aroma of success. Modification of products for new markets”….. page 478 text
2. Also consider the case on page 513 of the text…
”One size doesn t fit all: IKEA ready to localise for the Indian Market”
Promotion (Marketing communication) and distribution in international marketing.
To introduce students to the various elements and strategies associated with promotion in an international marketing context.
Promotion is a key form of communication in international business. Incorporating a strategic promotional mix it is the transmission of a message from seller or exporter to the buyer or the importer. International communications strategies are complex needing to take a variety of language, cultural, legal, technological and socio-economic issues into consideration.
1. Reading: Textbook Chapter 15 and 16.
2. In your own time consider the following case study on page 557 of the text (Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia) and the associated questions at the end from
“Rebuilding a brand: The challenges ahead for Malaysia Airlines after the twin airline disasters”…page 557 of the text.
Contemporary environmental variables in international marketing (ethics)
Consider the importance of ethics and the strategic relevance of corporate social responsibility to the international marketer.
Issues surrounding corporate ethics and notions of corporate social responsibility have taken on a growing importance in recent times. Companies operating in a number of different countries are likely to be subject to different local ethical standards. Emerging markets is where the issue of ethics arises mostly - laws, regulations and property rights. Getting it wrong can be detrimental to an international business. As such CSR has become a strategic consideration for all international firms.
1. Reading: Textbook Chapter 6.
Some interesting articles to consider…
Porter, M & Kramer M, 2011, Creating Shared Value, Harvard Business Review.
Carroll, A, 1999, Corporate Social Responsibility: Evolution of a definitional Construct, Business & Society 33 (3).
2. Work through the following case study from Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia.
“Bitter sweet-not so fair trade chocolate”….page 228 of the text.
International competitive strategy
To understand the fundamental importance of strategy and the critical role that positioning plays in the global marketing scene.
Organisations that are facing greater competitiveness in world markets find it essential to assume a global perspective in designing and implementing their marketing strategies. Strategic planning and the integration of the global activities into one coherent whole are needed for the organisation to maximise its activities and for the organisation to remain a viable player on the global stage.
1. Reading: Textbook Chapter 9.
2. Review the following case study from Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia and consider the questions at the end…
“The role of the internet in competitive strategy- the case of Qantas”…page 346 of the text.
Weeks 9 & 10
• The Task 2 “international marketing presentations” will be held in the week 10 and 11 workshops. Scheduling will be dependent upon class and will be negotiated with the lecturer.
Internationalisation, relationships and networks… plus services marketing.
Understand the nature and importance of inter-firm relationships and networks in the context of international marketing.
Relationships are the connections that form a firm s networks. Companies need to develop networks of alliances to provide access to new technologies, products and markets. To maintain successful alliances organisations must consider the requirements of common objectives, cultures and trust in the network.
1. Reading: Textbook Chapters 10 and 17.
2. In your own time consider the following case study on page 377 of the text (Fletcher R & Crawford, H, 2017, International Marketing: An Asia-Pacific Perspective 7th Ed. Pearson Australia) and consider the associated questions that looks at internalisation from a local SME perspective.
“Establishing international networks- the internationalisation of Cajella Jewellers and its partnership with Aston Martin”…p. 377 text.
• In week 12 we will do a course review and workshop the final assessment… your International Marketing Reports.