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MCOM 3rd SEMESTER
TUTOR MARKED
ASSIGNMENT
COURSE CODE : IBO-02
COURSE TITLE :
International Marketing Management
ASSIGNMENT CODE :
IBO-02/TMA/2026
1. a) Explain the concept and scope of international marketing. Discuss
the changing role of international marketing in the context of globalisation,
digitalisation, and increasing integration of world markets. Illustrate your
answer with an example of an Indian firm expanding its operations into overseas
markets.
b) Examine the influence of political, legal, economic,
socio-cultural, and technological factors on the formulation and implementation
of international marketing strategies. Support your answer with suitable
international business examples.
(a)
Concept and Scope of International Marketing
1.
Concept of International Marketing
International marketing
refers to the process of planning and conducting marketing activities across
national boundaries to satisfy the needs of customers in foreign markets. It
involves identifying global market opportunities and adapting product, price,
promotion, and distribution strategies to suit international customers.
In simple terms:
International marketing is
the application of marketing principles in more than one country.
Unlike domestic marketing,
international marketing deals with diverse environments, foreign regulations,
cultural differences, currency variations, and global competition.
2. Scope
of International Marketing
The scope of international
marketing is broad and includes:
1.
Export
Marketing –
Selling goods and services to foreign countries.
2.
Licensing
and Franchising
– Allowing foreign firms to use brand names and technology.
3.
Joint
Ventures and Strategic Alliances
– Partnering with foreign firms.
4.
Foreign
Direct Investment (FDI)
– Establishing production or marketing units abroad.
5.
Global
Branding and Promotion
– Creating international brand identity.
6.
International
Market Research
– Studying foreign consumer behavior and trends.
Thus, international
marketing goes beyond simple exporting and includes full-scale global
operations.
3.
Changing Role of International Marketing
In the modern era,
international marketing has evolved significantly due to:
(1)
Globalisation
Globalisation has reduced
trade barriers and increased cross-border trade. Companies now operate in
multiple markets to expand customer base and reduce dependence on domestic
demand.
(2)
Digitalisation
E-commerce platforms,
digital payments, and social media have enabled firms to reach global customers
easily. Digital marketing reduces entry barriers for small firms.
(3)
Integration of World Markets
Trade agreements and
economic integration (e.g., regional trade blocs) have increased market access
and competition.
As a result, international
marketing is no longer optional but essential for growth and survival.
4.
Example of an Indian Firm Expanding Overseas
An example is Tata Motors, which expanded into global
markets through acquisitions and exports.
·
It
acquired Jaguar Land Rover.
·
Adapted
products to suit international consumer preferences.
·
Established
production and marketing networks in Europe and other regions.
This shows how an Indian
company used international marketing strategies to build a global presence.
Conclusion
(Part a)
International marketing
involves global planning, adaptation, and expansion strategies. In the era of
globalisation and digitalisation, it has become a critical tool for business
growth. Indian firms are increasingly adopting global marketing approaches to
compete in integrated world markets.
(b)
Influence of Environmental Factors on International Marketing Strategy
International marketing
strategies are influenced by external environmental factors. These factors
determine how firms design and implement their global strategies.
1. Political
Factors
Political stability,
government policies, and trade restrictions influence business decisions.
Example:
Changes in import duties or sanctions can affect export strategies.
Companies entering
politically unstable markets face higher risk.
2. Legal
Factors
Legal systems differ across
countries. Laws related to consumer protection, intellectual property, and
advertising must be followed.
Example:
Pharmaceutical companies must comply with strict regulatory standards in
foreign markets.
Failure to comply may lead
to penalties or business closure.
3.
Economic Factors
Economic conditions such as
income levels, inflation, exchange rates, and purchasing power influence
pricing and product strategies.
Example:
Luxury brands target high-income economies, while low-cost products are
marketed in developing countries.
Exchange rate fluctuations
affect profit margins.
4.
Socio-Cultural Factors
Cultural values, language,
traditions, and consumer behavior significantly affect marketing strategies.
Example:
Fast-food companies modify menus according to local tastes.
Advertising messages must respect local customs and traditions.
5.
Technological Factors
Technological advancement
influences communication, distribution, and production.
Example:
Digital marketing, online retail platforms, and automation have transformed
international marketing.
Companies using advanced
technology gain competitive advantage.
Example
from International Business
McDonald's adapts its menu according to
cultural preferences in different countries, showing the importance of
socio-cultural factors in global marketing.
Conclusion
International marketing
strategies are shaped by political, legal, economic, socio-cultural, and
technological environments. Firms must carefully analyze these factors before
entering foreign markets. Successful global businesses adapt their strategies
to local conditions while maintaining global standards.
2. a) Describe the major international market entry strategies
available to firms. Critically evaluate the factors that influence the
selection of an appropriate entry mode, with reference to risk, control, cost,
and long-term strategic considerations. Illustrate your answer by citing an
example of a multinational enterprise entering a foreign market.
b) Discuss the EPRG framework as an approach to international
marketing orientation. Explain how ethnocentric, polycentric, regiocentric, and
geocentric orientations affect organisational mindset, marketing strategy
formulation, and managerial decision-making.
(a) Major
International Market Entry Strategies and Factors Influencing Entry Mode
Selection
1.
Introduction
When firms expand
internationally, they must decide how to enter foreign markets. The choice of
entry strategy affects risk exposure, control over operations, cost
commitments, and long-term profitability. Selecting an appropriate entry mode
is therefore a strategic decision.
2. Major
International Market Entry Strategies
(1)
Exporting
Exporting is the simplest
form of entry. Products are manufactured in the home country and sold abroad.
·
Indirect
Exporting –
Through intermediaries.
·
Direct
Exporting –
Directly to foreign buyers.
Advantages: Low investment, low risk.
Disadvantages:
Limited control over foreign marketing.
(2)
Licensing
The firm allows a foreign
company to use its technology, brand, or patents in exchange for royalties.
Advantages: Low cost and low risk.
Disadvantages:
Limited control; risk of creating future competitors.
(3)
Franchising
Similar to licensing but
includes a complete business format.
Advantages: Rapid expansion.
Disadvantages:
Quality control challenges.
(4) Joint
Venture
A partnership between a
foreign firm and a local firm.
Advantages: Shared risk, local expertise.
Disadvantages:
Conflict in management decisions.
(5)
Strategic Alliances
Non-equity partnerships for
mutual benefit.
(6)
Foreign Direct Investment (FDI)
Establishing wholly owned
subsidiaries or acquiring foreign companies.
Advantages: High control and long-term profit
potential.
Disadvantages:
High cost and high risk.
3.
Factors Influencing Selection of Entry Mode
(1) Risk
Political instability,
exchange rate volatility, and economic uncertainty increase risk.
Low-risk modes like exporting are preferred in unstable markets.
(2)
Control
Higher control (e.g., FDI)
allows firms to manage branding, quality, and operations effectively.
Low-control modes (licensing) limit strategic influence.
(3) Cost
and Resource Commitment
FDI requires high capital
investment.
Exporting requires minimal investment.
(4)
Long-Term Strategic Considerations
Firms seeking long-term
presence and competitive advantage prefer joint ventures or wholly owned
subsidiaries.
Example
Walmart entered India through a joint
venture initially due to regulatory restrictions and later adopted different
strategies as policies evolved. This illustrates how firms adapt entry mode
based on risk, cost, and long-term strategy.
Conclusion
Firms must balance risk,
control, cost, and strategic objectives when selecting an entry mode. No single
strategy is universally suitable; it depends on market conditions and corporate
goals.
(b) EPRG Framework and International Marketing Orientation
1.
Introduction
The EPRG framework was
developed by Howard V. Perlmutter
to explain different orientations of firms toward international markets. It
identifies four approaches: Ethnocentric, Polycentric, Regiocentric, and
Geocentric.
2.
Ethnocentric Orientation
·
Home
country is considered superior.
·
Foreign
operations are extensions of domestic market.
·
Standardized
products and strategies.
Impact:
Limited adaptation to local markets; centralized decision-making.
3.
Polycentric Orientation
·
Each
foreign market is treated independently.
·
Local
managers handle operations.
·
Strategies
are adapted to local culture.
Impact:
High local responsiveness but limited global integration.
4.
Regiocentric Orientation
·
Focus
on a specific geographic region.
·
Regional
strategies and coordination.
Impact:
Balanced approach between standardization and adaptation.
5.
Geocentric Orientation
·
Global
perspective.
·
Best
talent and strategies used worldwide.
·
Standardization
with local sensitivity.
Impact:
Integrated global operations; decentralized yet coordinated management.
6.
Influence on Marketing Strategy and Decision-Making
·
Ethnocentric → Standardized marketing mix.
·
Polycentric → Customized products and
promotions.
·
Regiocentric → Regional branding strategies.
·
Geocentric → Global branding with local
adaptation.
Example
Unilever follows a geocentric approach,
balancing global brand identity with local customization.
Conclusion
The EPRG framework explains
how firms view international markets and design strategies accordingly.
Organizational mindset directly influences marketing decisions, managerial
structure, and global competitiveness. A geocentric orientation is often considered
most suitable in today’s integrated global economy.
3. Write short notes on the following:
a) International marketing research: importance and methodological
challenges
b) Cultural determinants of international consumer behaviour
c) International services marketing and its strategic implications
d) International market segmentation and positioning strategies
(4×5)
(a)
International Marketing Research: Importance and Methodological Challenges
International
marketing research
refers to the systematic collection, analysis, and interpretation of data
related to foreign markets to support international business decisions.
Importance:
1.
Helps
identify overseas market opportunities.
2.
Assists
in understanding foreign consumer preferences.
3.
Reduces
risk in market entry decisions.
4.
Supports
product adaptation and pricing strategies.
5.
Enables
analysis of competitors in global markets.
For example, before
launching a product abroad, firms conduct research to understand demand
patterns and purchasing power.
Methodological
Challenges:
1.
Data
Availability Issues
– Reliable data may not be available in developing countries.
2.
Language
Barriers –
Translation errors may distort responses.
3.
Cultural
Differences –
Consumer attitudes vary across countries.
4.
Legal
Restrictions –
Some countries limit data collection.
5.
Comparability
Problems –
Data may not be standardized across nations.
Thus, international
research is complex but essential for informed global decisions.
(b)
Cultural Determinants of International Consumer Behaviour
Culture significantly
influences buying behaviour in international markets.
Key
Cultural Determinants:
1.
Values
and Beliefs –
Influence product acceptance.
2.
Language – Affects communication and
advertising.
3.
Religion – Determines food habits and
consumption patterns.
4.
Customs
and Traditions
– Impact seasonal demand.
5.
Social
Norms –
Influence brand perception.
For example, multinational
fast-food companies modify menus to suit local tastes. Cultural sensitivity is
crucial for successful international marketing.
(c)
International Services Marketing and Its Strategic Implications
International services
marketing involves marketing intangible services such as banking, tourism,
education, and healthcare across countries.
Characteristics
of Services:
1.
Intangibility
2.
Inseparability
3.
Variability
4.
Perishability
Strategic
Implications:
1.
Standardization
vs. customization decisions.
2.
Need
for quality control across countries.
3.
Training
of local employees.
4.
Use
of digital platforms for global reach.
5.
Emphasis
on brand reputation and trust.
For example, global hotel
chains maintain standardized quality but adapt services to local culture.
(d)
International Market Segmentation and Positioning Strategies
International market
segmentation involves dividing global markets into distinct groups based on
common characteristics.
Segmentation
Bases:
1.
Geographic
2.
Demographic
3.
Psychographic
4.
Behavioral
Positioning
Strategies:
1.
Standardized
global positioning
2.
Localized
positioning
3.
Hybrid
(glocal) approach
Effective segmentation
helps firms target the right customers and design appropriate marketing mix
strategies.
For example, luxury brands
position products differently in high-income and emerging markets.
4. Differentiate between the following: a) Domestic marketing and
international marketing
b) Product standardisation and product adaptation in global markets
c) Direct and indirect international distribution channels
d) Cost-based pricing and value-based pricing in international
markets
(a)
Domestic Marketing and International Marketing
|
Basis |
Domestic
Marketing |
International
Marketing |
|
Scope |
Operates
within one country |
Operates
across national boundaries |
|
Market
Environment |
Uniform
economic, legal, and cultural conditions |
Diverse
political, economic, and cultural environments |
|
Risk
Level |
Comparatively
low |
Higher
due to exchange rate, political, and legal risks |
|
Competition |
Local
competitors |
Global
competitors |
|
Currency |
Single
currency |
Multiple
currencies |
|
Government
Regulations |
Single
regulatory system |
Different
regulations in each country |
Explanation:
Domestic marketing deals with customers within the home country, while
international marketing involves operating in multiple countries with diverse
environments and greater complexity.
(b)
Product Standardisation and Product Adaptation in Global Markets
|
Basis |
Product
Standardisation |
Product
Adaptation |
|
Meaning |
Same
product offered worldwide |
Product
modified to suit local market |
|
Cost |
Lower
production and marketing cost |
Higher
cost due to customization |
|
Brand
Image |
Strong
global brand consistency |
Flexible
brand positioning |
|
Suitability |
Similar
consumer preferences |
Diverse
cultural preferences |
|
Advantage |
Economies
of scale |
Better
local acceptance |
Explanation:
Standardisation focuses on uniformity across markets, while adaptation modifies
products according to local tastes, culture, or regulations.
(c)
Direct and Indirect International Distribution Channels
|
Basis |
Direct
Distribution |
Indirect
Distribution |
|
Control |
High
control over marketing activities |
Limited
control |
|
Intermediaries |
Fewer
intermediaries |
Use
of agents or trading companies |
|
Cost |
Higher
investment |
Lower
initial cost |
|
Risk |
Higher
risk |
Lower
risk |
|
Market
Knowledge |
Requires
internal expertise |
Intermediaries
provide market knowledge |
Explanation:
Direct distribution involves selling directly to foreign buyers, while indirect
distribution uses intermediaries like export agents or trading companies.
(d)
Cost-Based Pricing and Value-Based Pricing in International Markets
|
Basis |
Cost-Based
Pricing |
Value-Based
Pricing |
|
Pricing
Basis |
Based
on production cost plus margin |
Based
on customer perceived value |
|
Focus |
Cost
recovery |
Customer
willingness to pay |
|
Market
Orientation |
Internal
cost focus |
Market
demand focus |
|
Flexibility |
Less
flexible |
Highly
flexible |
|
Profit
Potential |
Limited
by cost structure |
Higher
if value perception is strong |
Explanation:
Cost-based pricing ensures coverage of costs and profit margin, while
value-based pricing depends on the perceived value of the product in the
international market.
5. Comment on the following statement:
a) “In international marketing, success depends not only on
identifying global opportunities but also on managing cross-cultural
differences effectively.”
b) “A firm’s choice of international pricing strategy can either
enhance global competitiveness or become a major barrier to market entry.”
c) “Advances in digital technology have transformed international
promotion from a country-specific activity into a globally integrated process.”
d) “Without effective coordination and control systems,
international marketing operations are likely to lose strategic direction and
efficiency.”
(a) “In
international marketing, success depends not only on identifying global
opportunities but also on managing cross-cultural differences effectively.”
This statement highlights that identifying
profitable international markets is only the first step. True success depends
on how well a firm understands and adapts to cultural differences.
Culture influences:
- Consumer preferences
- Communication styles
- Buying behaviour
- Product usage patterns
For example, food habits vary significantly across
countries, requiring adaptation in product offerings. Advertising messages that
are acceptable in one culture may be inappropriate in another. Failure to
respect local customs can damage brand image and reputation.
Effective cross-cultural management includes:
- Conducting cultural research
- Training managers in cultural sensitivity
- Adapting marketing strategies to local norms
Thus, international marketing success requires both
opportunity recognition and cultural competence.
(b) “A
firm’s choice of international pricing strategy can either enhance global
competitiveness or become a major barrier to market entry.”
Pricing plays a critical role in international
markets due to differences in income levels, competition, exchange rates, and
government regulations.
If pricing is too high:
- Products may become unaffordable.
- Entry barriers may increase.
If pricing is too low:
- Profit margins may decline.
- Brand positioning may weaken.
Strategies such as penetration pricing, skimming
pricing, and value-based pricing must be chosen carefully. Additionally,
exchange rate fluctuations and import duties affect pricing decisions.
Therefore, the right pricing strategy enhances
competitiveness, while poor pricing decisions can restrict market access and
reduce profitability.
(c)
“Advances in digital technology have transformed international promotion from a
country-specific activity into a globally integrated process.”
Earlier, international promotion was largely
country-specific, relying on local advertising channels. However, digital
technology has globalized promotional activities.
Today:
- Social media platforms reach global audiences.
- Online advertising campaigns are launched worldwide.
- Influencer marketing crosses national boundaries.
- E-commerce platforms connect buyers and sellers globally.
Digital tools enable firms to maintain a consistent
global brand image while also customizing content for local markets.
Thus, international promotion has become more
integrated, cost-effective, and interactive due to technological advancements.
(d) “Without
effective coordination and control systems, international marketing operations
are likely to lose strategic direction and efficiency.”
International operations involve multiple countries,
diverse teams, and complex supply chains. Without proper coordination:
- Marketing strategies may become inconsistent.
- Brand identity may weaken.
- Operational inefficiencies may increase.
Control systems help ensure:
- Alignment with global objectives
- Performance monitoring
- Compliance with policies
- Efficient resource allocation
For example, multinational corporations use
centralized reporting systems and standardized procedures to maintain strategic
consistency.
Hence, effective coordination and control are
essential for maintaining efficiency and strategic direction in global
marketing operations.
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