Development and Implementation of International Marketing Strategy - Assignment Example

Name: Tutor: Course: Date: PART A: REVIEW QUESTIONS 1. a) Reconnaissance missions: These are trips to international target destinations by the marketing research team to obtain first hand information and personal experience of the host country. The reconnaissance team is interested in the culture, technology, economy, social cohesiveness of the people, performance and structures of competitors and purchasing power of the consumers (Burke, 117). b) Networking: Developing linkages and interconnections between different partners inside and outside the supply chain to learning of best practices, access to latest technology, industry trends and growth (Doole & Lowe, 33). c) Austrade: This is the Australian commission on trade, education and investment that assists Australian businesses engaging in international marketing to contribute to the national economy (ACT, 4). d) In-house research: It involves organization’s employees gathering, compiling and documenting marketing information and data such as observation, customer interviews and questionnaires without the need to hire external marketing research firms (Zikmund and Babin, 24). 2. a) Ethical and legal requirements when implementing marketing activities i. Responsible marketing to consider the rights of children and minorities ii. Expression of citizenship, responsibility, fairness and honest when advertising products and services iii. Providing shared and consistent approaches to ethical decisions that integrates organizational codes of conduct, training and values iv. Compliance to marketing laws and regulation on product liability, product disposal and use b) Safety requirements i. Guaranteeing safety and health to employees involved in marketing activities ii. Applying the required disclaimers and caution to risky products that may cause harm to users. iii. Safe custody and storage of marketing materials from access by unauthorized parties like children iv). Using controls and measures to protect organizational marketing data and information from access by hackers and other unauthorized persons. c). Cultural considerations i. Protecting the rights of cultural minorities and beliefs of the community or society being targeted by marketing activities ii. Involvement in morally acceptable advertising that meets the threshold of modest dressing, language and belief systems iii. Advertising and marketing products that are consistent to cultural practices of the host society iv. Involving locals in domestic marketing activities based on their values, level of education, lifestyles and tastes 3. International markets experience frequent changes which must be studied and regularly documented. Ongoing research will help establish changes in demographics such as incomes, level of education, marital status, laws and regulations, and population size (Welch, et al. 103). In addition, it is important to know entry of new competitors into the market and the size of their market share. Ongoing research will help obtain upto date information regarding the various household and economic variables that keep changing in the international arena. 4. Statistical analysis tools i. Regression models: Regression analysis provides a relationship between a number of variables that may affect customer loyalty, consumer purchase behavior and satisfaction (Webb, 54). For example, estimation of best fit for customer loyalty under regression considers the Y variable (customer loyalty) against the changes in commitment (X1), satisfaction (X2) trust (X3) and others. ii. Discriminant analysis: This technique classifies products, people and other tangibles into two or more categories (Webb, 54). For example, distinguishing effectiveness of advertising channels for the various product types. iii. Cluster analysis: This technique separates objects into mutually exclusive groups that are constitutionally homogenous (Zikmund and Babin, 56). For example, the researcher may be interested in grouping consumers into certain segments based on their similarities and attributes. 5. Magazines are one of the external sources of information on international marketing (Webb, 33). Industry magazines such as B2B Marketing Magazine are available online on the website www.b2bmarketing.net/magazine and provide information on how to market products and gain entry into new markets. The highlights of this magazine are features, case studies, research, analysis, news reviews and a mixture of best practices. 6. Five marketing strategies suitable for international marketing (Erramillii & Rao, 138) i. Joint ventures ii. Mergers and acquisitions iii. Strategic alliances iv. Divestiture v. Franchising 7. Strategic alliances: Global strategic alliances work on both import and export business and maximizes competitive advantages. In strategic alliance, two corporations based in their home countries pursue a related business or a new geographic market where government prohibits imports (McDonald & Burton, 25). Costs are shared equally and makes use of the existing geographical markets. For example, Nokia and Microsoft have entered a strategic alliance to develop innovative mobile products based on the complementary expertise and strengths. It is advisable to enter into an alliance with a company with long-standing business relationship. This strategy is good because the firms exploit new skills and technology, enlarge distribution channels, exploit new opportunities and gain knowledge on international culture and customs. However, communication could be less efficient and fear of market insulation as well as loss of control on quality, costs, employees and others could frustrate the alliance (McDonald & Burton, 26). Despite that, it may be important to explore all the financial and legal implications before pursuing any partnership with international companies. 8. Causal influences and international marketing i. Global financial crisis: The collapse in the international market lowers the value of stocks and strengths of currencies of countries. Consumers will be worse off because of increased rates hence inability to procure or sell goods and services to international customers (Whitelock, 342). This affects the balance of payments. ii. Australian dollar: This acts as a measure of value and currency. The dollar is vulnerable to inflation and international currency fluctuations. Reduction in the strength of the AUD$ against the US$ means that imports would be very expensive while exports become undervalued. Demand for Australian goods in the international market will increase but supply of imported goods will reduce. iii. Natural disasters: Natural disasters such as the arctic volcanic eruptions and tsunamis affect transportation corridors such as land, air and water. Moving goods from one country to another will be difficult or becomes expensive. Ultimately, the cost of the services or goods to the final consumer in the international market will be high (Sinkovics & Ghauri, 38). 9. INCOTERMS are rules defining the roles and responsibilities of buyers and sellers under sales contracts for the delivery of goods and services (Ramberg, 15). They are widely used in commercial transactions and published by the International Chamber of Commerce (ICC). These terms have been incorporated in international sales contracts. Some of the terms include; Free Carrie, EX works, Carriage and Insurance Paid To, Free Alongside Ship, Cost and Freight and Free On Board among others. PART B: CASE STUDY 1. Attitude towards free enterprise and democracy showed more similarity with that of the UK. This is because Poland being an advanced country fell out of communism much earlier than the other Slavic speaking countries. Therefore, they demonstrated less ethnic violence, skilled labor force and good investment prospects. 2. a) Presence of huge consumer market for confectionery in Poland which offered ready market for Cadbury Sweppes products b) Growing population and increasing number of private sector business investing in Poland c) Presence of skilled labor, great investment prospects and political stability among Polish people 3. Cadbury Sweppes can form strategic alliances with local online companies in Poland that provide online transaction of goods and services. By engaging in electronic commerce, Cadbury Sweppes will be able to seize and pioneer a market with less competition. Market research would be very important through surveys and online search in order to understand new and emerging markets with increased use of electronic commerce. 4. a) Electronic commerce would reduce the amount of labor force involved in physical customer service and this would mean greater friction with local community in provision of employment. b) Since the firm already experienced lack of expertise in finance and marketing, expatriates would have to engage local consumer market with an obvious language barrier. This would make it difficult to order and pay for products online. 5. Political stability is one reason for businesses to thrive and make profits. Many communist countries had not embraced the concept of free enterprise and free trade. However, Poland emerged out of this ideology to embrace democracy and free enterprise which was a welcome to potential Western European firms. Existence of ethnic strife frustrates business operations and causes damage to production and marketing facilities. 6. Poland is a rising nation with better choices to introduce English as an international language for expatriates and locals to learn and use in business transactions. Also, the company can introduce process and business information systems to improve its production, human resource and management operations. Use of advanced technology in production, marketing and distribution such as e-commerce would raise the competitive advantage of Cadbury Sweppes in Poland. Finally, recruitment, training and continuous development of local talent would increase their freedom and sense of belonging to the company. PART C: PROJECT 1. a) New Zealand is the new target market for Imagine Education. The country is adjacent to Australia but divided by a narrow water mass in the Oceania. It has a population of 4.5 million people with young and college going youth of about 2 million which is almost half of the country’s population (Kennedy, 15). Adult literacy rates are at 99% with many having college education while income per capita is at $30,000 (Garden and Stoll, 13). Both male and female population has equal access to education and work opportunities. Besides, the country’s education system is much developed with state-of-the art infrastructure, teaching facilities and grading system. New Zealanders are outgoing and embrace attitudes similar to those in Australia. Much of cultural and belief systems are shared with Australia such as political affiliation, religion, language and culture. The cultural distance is very small which implies that Imagine Education would have fewer challenges adjusting and matching its capabilities in the new market. Many people are problem solvers and industrious. The youth likes playing cricket, rugby, softball, horse racing, and netball (Kennedy, 20). Their lifestyles largely reflect that of the UK that involve snow sporting, mountain skiing and going on holidays. The size of the target market is about 1.5 million youth who have just completed high school and would want to get a diploma or degree. New Zealand has a GDP of $230 billion with leading sectors being extractive industries such as timber, gold, whaling and flax (Mein, 18). Human development index is about 0.91 which shows that provision and access of social amenities is unrestricted. Social and economic inequalities are also low showed by a Gini coefficient of 36.2 (medium) (Garden and Stoll, 14). The country is highly dependent on international trade and has fewer restrictions on its trading partners. The free trade agreement was signed with China in 2008 to allow for inter trade. The service sector, education included, is the largest sector in the economy. Common legal requirements are acquisition of operating permits, payment of taxes and compliance to state regulations on the standards of education and quality (McDonald & Burton, 60) b) Regression is one of the statistical tools to identify trends such as preferences to certain courses (Webb, 51). The regressive element could be Y (preference of business courses) being influenced by a number of factors such as X1 (family influence), X2 (high school exit grades), X3 (work preferences), X4 (personal motivation) among others. Discriminant analysis can also be used to discriminate the taste and preference for business and marketing courses. Here, the analysis would want to draw a relationship between applicants who prefer business causes may have different ambitions and expectations to those who prefer marketing courses. 2. PowerPoint Presentation a) While undertaking marketing activities for Imagine Education in New Zealand, I consulted a number of people and authorities in the Education, Trade and Investment Sector. First, I consulted closely with Austrade to get a better picture of the New Zealand market and how they respond to international investors. Secondly, I logged onto the International Chamber of Commerce (ICC) to learn on the various conditions and agreements in signing international contracts. Finally, I requested audience with the New Zealand department of trade and education to understand the legal requirements and quality/educational standards respectively. Market activations, Billboards and online advertising were the major marketing activities. Market activations were chosen because they are interactive and develops stronger interpersonal bonds with host communities. It is also socially and culturally appropriate sicne it answers some of the fears and queries of the local population. Billboards give a lasting impression on the minds of the viewers and are economically viable. They were erected on strategic parts of Auckland and Wellington streets. Lastly, online advertising was also selected because most youth in New Zealand have access to internet through mobile phones, tablets and laptops. This channel is also less costly and has greater reach. To obtain information on appropriate marketing activities, I consulted widely on marketing journals, magazines and experience. I also got help from a phone call to marketing consultants who advised on the three methods of marketing Imagine Education. The director of Imagine Education had to approve the rationale and costs to be incurred in the marketing of the college. b) In order to implement international marketing activities, it was important to engage a number of stakeholders such as Austrade, ICC, New Zealand department of education, New Zealand department of trade, local authorities in New Zealand, investment advisors in Australia and communities in New Zealand. I did priority listing for the basic resources to be procured such as marketing materials, transport, accommodation and telephone which was prepared by the marketing manager and approved by the director of Imagine Education. I assigned roles depending on skills, competencies and experience in international marketing. I ensured that marketing activities complied with both Australian and New Zealand’s advertising laws and values. I measured and determined the effectiveness of the marketing activities by measuring the impact and response from the community through queries, phone calls and requests to undertake the courses. I selected a number of marketing activities then allocated budget and drew the likely impact it would have. I later picked on the budget that fulfilled most of the requirements such as cost to benefits. c) Personal interviews and tracking checklists were the most appropriate tools since they obtain first hand opinions of the target market. The youth and their parents interviewed responded well through interviews. Tracking checklists was to obtain the performance of the selected marketing activities and their effectiveness in the new market. To monitor customer reaction, Google metrics will be used to determine the number of users entering the Imagine Education site. Facebook likes and those following the college on twitter and Instagram will also capture the reaction of customers. MS Excel sheets would be appropriate in the analysis of the targets by capturing new targets and comparing against baseline targets. Based on the previous targets and how they were achieved, new targets will heavily depend on them. For example, when the previous targets were surpassed, the new targets will be drawn on the level of surpassed target. Works cited Australian Trade Commission (ACT). Austrade Case Study, c. April 2010, www.finance.gov.au Burke, Peter. A social history of knowledge II: From the Encyclopaedia to Wikipedia. Polity. 2012. Doole, I. & Lowe, R. International Marketing Strategy: Analysis, Development and Implementation. Cengage Learning EMEA. 2008. Erramillii. M. K. & Rao, C.P. (1990). Choice Of market Entry modes by service firms: Role of market Knowledge, Management International Review, Vol. 30 (2): 135-150. Garden, Donald and Stoll, Mark. Australia, New Zealand, and the Pacific: an environmental history. Nature and Human Societies. ABC-CLIO/Greenwood.2005. Kennedy, Jeffrey. Leadership and Culture in New Zealand. In Chhokar, Jagdeep; Brodbeck, Felix; House, Robert. Culture and Leadership Across the World: The GLOBE Book of In- Depth Studies of 25 Societies. US: Psychology Press. 2007. McDonald, F. & Burton, F. International Business. Cengage Learning EMEA. 2002. Mein Smith, Philippa A Concise History of New Zealand. Australia: Cambridge University Press. 2005.  Ramberg, Jan. ICC Guide to Incoterms 2010: Understanding and Practical Use. ICC Publishing SA. 2011. Sinkovics, R.R. & Ghauri, P.N. New Challenges to International Marketing. Emerald Group Publishing. Advances in International Marketing Journal. Vol. 20 (2009)2:34-45. Webb, John. Understanding and Designing Market Research. Cengage Learning EMEA. 2002. Welch, L.S., Benito, G.R. & Petersen, B. Foreign Operation Methods: Theory, Analysis, Strategy. Edward Elgar Publishing. 2008. Whitelock, J. Theories of internationalization and their impact on market entry, International Marketing Review, Vol. 19(2002)4:342 – 347. Zikmund, William and Babin Barry. Exploring Marketing Research. Cengage Learning. 2006. www.b2bmarketing.net/magazine Read More