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International marketing midterm - Essay Example

The marketer’s task is the same whether applied in Buffalo, New York or Hare, Zanzibar. Discuss. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. The statement “The marketer’s task is the same whether applied in Buffalo, New York or Hare, Zanzibar, “is because the marketing concepts, processes, and principles are universally applicable.

Therefore, the business’s goal is o make a profit by promoting, pricing, and distributing products for which there is a market. Question 2 Define the term ‘self-reference criterion’. Then state how it applies to the Ruddiness (Disney Paris) case. The ISRC is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. Unfortunately, Ruddiness did not take cultural dissimilarities and reference criteria into account resulting in their initial poor performance.

These factors are in essence foreseeable by extensive research or the ability of Disney advisors to remove themselves and their values from he decision making in the infrastructure of Ruddiness. Question 3 Why should marketers study a country’s history and geography? Marketers should study a country’s history and geography in order to interpret a culture’s behavior and attitudes. Question 4 Describe EITHER the ‘origins of culture’ OR the ‘elements of culture’ for a country of your choice. This country may be the United States if you so choose. The famous elements of Italian culture are its art, music, fashion, and iconic food.

Italy was the birthplace of opera and for generations the language of opera was Italian, irrespective of the nationality of the composer. Popular tastes in drama in Italy have long favored comedy; the improvisational style known as the Comedic delegate began in Italy in the mid-16th century and is still performed today. Question 5 Define and give one example each for the terms: cultural exclusive, cultural imperative and cultural elective. Cultural exclusives are customs or behavior patterns reserved exclusively for the locals and from which foreigners are excluded.

For example, only Catholics can take communion in a Catholic church. Also offensive is a reigned criticizing a country’s politics, customs, and peculiarities even though locals, among themselves, criticize these issues. Cultural imperatives are customs that you must conform to if you want to be successful. An example of a cultural imperative is relationship building. In many Asian countries such as China and Japan and Latin American countries, business understands the importance of building a relationship. Business people do not do business with companies, they do business with people.

If you want to do business in these countries, it is a cultural imperative to spend time alluding that relationship before you even bring up business. Cultural electives relate to behavior or customs that you may wish to conform to or participate in but that are not required. A cultural elective in one county may be an imperative in another. An example of cultural electives can be being in a country that offers liquor at the start of business meetings, even if it is 8 in the morning. It is to build friendship and trust, so politely decline or accept and take a ceremonial sip.

Question 6 Define the terms domestication, confiscation and expropriation. Then state why a entry would rather domesticate than expropriate. Domestication occurs when foreign companies relinquish control and ownership to the nationals. Confiscation is the process of a government’s taking ownership of a property without compensation. Expropriation is the seizure of foreign assets by a government with payment of compensation to the owners. Expropriation creates problems with other governments and can cause potential investors to shy away from investments in their country.

Further, if a country domesticates, they are able to achieve almost all, if not all, the advantages of expropriation without the negative aspects associated with such a drastic move. Question 7 Differentiate between conciliation and arbitration. Then state why conciliation if a better way to resolve a commercial dispute than arbitration. There are several differences between arbitration and conciliation. While both represent a meeting that is assembled to discuss a settlement, they are handled in completely different fashions.

In arbitration, each of the parties meets together in one room, while during conciliation, they are kept separate. Arbitration is handled by a representative of the rout and any agreement is binding under regional law. Conciliation is much more informal and has no legal significance. Although arbitration is generally regarded as the best means of settling international disputes, a preliminary effort at conciliation is the nest method for resolving disputes with a Chinese business partner; in fact, some Chinese companies may avoid doing business with companies that go first to arbitration when differences arise.

Conciliation is considered by the Chinese to be far friendlier than arbitration or litigation in settling disputes. The Chinese believes that when a dispute occurs, friendly negotiation should be used first to solve the problem, if that fails, then conciliation should be tried. The Chinese are less threatened with conciliation but unfortunately, neither side is bound to conciliation settlement, as would be the case under arbitration. Question 8 What is the task of the international marketing researcher?

How is it complicated by the foreign environment? The task of the international market researcher is to answer questions with current, valid information that a marketer can use to design ND implement marketing programs. This task is complicated by the foreign environment in the case of secondary data by a lack of collected data or data which have been poorly collected and the reliability of the secondary data available. In many countries, national pride comes before statistical accuracy, and frequently secondary data are opinions rather than fact.

Another difficultly with secondary data involves the comparability and currency of available data. Oftentimes, data are not comparable from period to period, nor are they current or collected on a predictable basis. Question 9 Discuss each of the stages of evolution in the marketing process. Illustrate with a country for each stage. The marketing institutions which develop as a country passes from one stage to another are as follows: As a generalization, a nation develops and industry grows with marketing institutions evolving to fulfill the distribution needs created at each new level.

The more developed an economy, the greater the variety of marketing functions demanded, and the more sophisticated and specialized the institutions become to perform marketing functions. Also developed are the myriad acclimating agencies required to support a growing economy. Advertising agencies, facilities for marketing research, repair services, specialized consumer financing agencies, and storage and warehouse facilities are created to service the particular needs of expanded markets and economies.

It is of importance to remember that these institutions do not automatically come about nor do the necessary marketing institutions simply appear. Question 10 Discuss the economic and trade importance of big emerging markets. The Department of Commerce estimates that over 75% of the expected growth in the roll trade over the next two decades will come from the more than 130 developing and newly industrialized countries (Nicks). There is a small core of these that will account for over half of that growth.

They predict that the countries identified as Big Emerging Markets (Beams) alone will be a bigger import market by the end of this decade than the European Union and by the year 2010, will be importing more than the EX. and Japan combined. The Beams differ from other developing countries because they import more than smaller markets and more than economies of similar size. As they embark on economic development, demand for capital goods to build their manufacturing base and develop infrastructure increases.

Increased economic activity means more Jobs and more income to spend on products not yet produced locally. Thus, as their economies expand, there is an accelerated growth in demand for goods and services, much of which must be imported. BEAM merchandise imports are expected to be nearly one trillion dollars higher than they were in 1990; if services are added, the amount Jumps beyond one trillion dollars.