International Marketing
MKT303 International
Marketing
Trade relations
Workshop 7
Copyright Noti
c
e
COPYRIGHT
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969
WARNING
This material has been reproduced and communicated to you by or on behalf of
Kaplan Higher Education pursuant to Part VB of the Copyright Act 1968 (the Act).
The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of
copyright protection under the Act.
Do not remove this notice
Week Topic
1 Introduction to International Marketing
2 Political and economic factors impacting international marketing
3 Social and technological factors impacting international marketing
4 Legal and environmental factors impacting international marketing
5 Assignment presentations
6 Study week (Attendance is compulsory).
7 Trade relations
8
Culture and communications
9 Market entry – an international marketing approach
10 Getting a product to the customer – international context
11 Product management and surviving in an international market
12 Future of international marketing and ethics
Trade relations are integral to realising
market opportunities.
Knowing trade relations lets you identify
potential markets to build international
marketing opportunities.
Revision
What did we discuss last week? Identify the
three main points that you’ve learned during
last week’s class.
Share your thoughts with the rest of the
class.
“Global trade has advantages. For starters, it
allows those of us who live through winter to eat
fresh produce year-round.”
David Suzuki
1. Understand the history of trade.
2. Gain context of Australia and how it conducts
trade with international trade partners.
3. Comprehend how international trade works.
4. Understand the role of key trade bodies.
5. Discuss key concepts such as imports, exports
and tariffs.
• Trade has existed since the
foundations of humanity –
exchanging a surplus of
products for another
• Modern trade arrangements
began after World War II
(1945)
– General Agreement on
Tariffs and Trade (1947-
1994)
– World Trade Organisation
(1995 onwards)
• International trade was a
way to reduce potential for
conflict
Watch: bit.ly/mkt303wto
Source: https://www.wto.org/english/thewto_e/thewto_e.htm
https://bit.ly/mkt303wto
https://www.wto.org/english/thewto_e/thewto_e.htm
Workshop Activity
In groups of three to four discuss:
What are some of the advantages of
encouraging international trade?
What are some of the disadvantages of
international trade?
World Trade
Organisation (WTO)
• Global body that deals
with the rule of trade
between countries.
• Goal: “ensure that trade
flows smoothly,
predicably and as freely
as possible.”
• 160 are members of the
organisation representing
98% of total trade.
• Based in the Centre
William Rappard in
Switzerland.
Source: https://www.wto.org/english/thewto_e/thewto_e.htm
https://www.wto.org/english/thewto_e/thewto_e.htm
International
Monetary Fund (IMF)
• Maintains the stability of the
world’s monetary system.
• Founded in 1945
• Goal is to foster global
monetary cooperation.
• 189 members, some of these
countries provide funding for
loans that are given out by the
organisation.
• Undertakes:
– Economic surveillance
– Lending
– Capacity development
• Based in Washington DC, USA
• 189 members
• Mission: “reduce extreme
poverty to 3% by 2030.
Promote share prosperity
by increasing incomes of
the poorest 40% of
people in every country”
• Provides funding and
knowledge
• Currently undertaking
over 12,000 development
projects around the world
• Headquartered in
Washington DC, USA
Workshop Activity
In groups of three to four pick one of these
international bodies and discuss how it has
helped in support international trade
What has the international organisation
done?
What more could it do?
• Tariffs
– Taxes on imported
products or services
– Raises prices for
international goods making
them more expensive than
domestic
• Quotas
– Restrictions on the amount
of imported products or
services
– Limits the potential for
foreign products or
services to enter a market
• Subsidies
– Government support to
particular industries
– Not necessarily trade
protection but can help
these industries compete
• Regulations
– Laws or compliance
required to operate in a
market
– Not necessarily trade
protection but does place
requirements on
competition
• Free trade is the removal
trade barriers
• Protectionism is the
increase of trade barriers
• But the reality is less
simple
– Varies between
countries
– Varies between
industries
• Countries trend towards
these two directions
World War I
•1914-1918
•Limited civilian
economies
‘Spanish
Flu’
•1918-1920
•Social isolation
•Restrictions on
travel
Great
Depression
•1930-1939
•Trade
protectionism
•Mass
unemployment
World War
II
•1939-1945
•Limited civilian
economies
Cold War
• 1945-1989
• Colonial independence
• Capitalism vs
Communism
• Creation of trading
blocs
Post-
Cold War
• 1989-2000
• Collapse of USSR
• Economic growth in
China
• Bilateral trade
agreements
• Expansion of EU
Internet
Era
• 2000-
2015
• Growth of Internet
access
• Use of e-commerce
• Reductions in trade
barriers
• Reduction of US
influence
Current
• 2015-onwards
• Brexit and US
protectionism
• Decline of US
influence
• COVID-19
• Travel restrictions
Workshop Activity
Since World War II the general trend has been
towards removing trade barriers
Yet the UK is leaving the European Union and
Donald Trump was elected to the US to impose
trade barriers. COVID-19 has also disrupted
global supply chains and trade
In groups of three to four discuss what you
think will be the general trends in global trade
over the next five to ten years.
Australia is dependent on global trade to bolster the
economy
Source: https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
Source: https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
Source: https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
Workshop Activity
Cars in Australia used to be
manufactured in Australia,
however this is no longer the
case:
Watch: bit.ly/mkt303holden
In groups of three to four
discuss:
How did global trade impact
this decision?
Was this the right approach in
your view?
Source: General Motors
http://bit.ly/mkt303holden
• Trade needs
agreement between
countries:
– Multilateral (many
countries)
– Regional (group of
countries)
– Bilateral (between two
countries)
• While the goal is ‘free
trade’ some barriers do
remain
Watch:
bit.ly/mkt303brookings
In groups discuss:
What are the advantages
and disadvantages of
trade agreements?
What is your view on this?
https://bit.ly/mkt303brookings
• Group of countries that
protect themselves from
imports from non-member
countries.
• Trading Blocs are a form
of economic integration,
and increasingly shape the
pattern of world trade.
• There are 4 major types of
integration.
1. Free Trade Areas
2. Customs Unions
3. Common Markets
4. Monetary Unions
Gillespie, K. and Hennessey, H.D., 2010. Global
marketing. Cengage Learning.
Source: http://marketbusinessnews.com/financial-glossary/single-market/
c
http://marketbusinessnews.com/financial-glossary/single-market/
3.Common
Markets
Same as free
trade areas but…
Agreed common
external tariff or
trade barrier to
non member
nations is
exercised.
Capital or labour
cannot be moved
freely between
member nations.
e.g. SACU
2.Customs
Unions
Simplest form of
integration.
* Nations agree
to drop all or
some barriers
among member
nations but can
still trade outside
of the group.
* Capital or
labour cannot be
moved freely
between member
nations.
e.g. NAFTA
e.g. ASEAN
1.Free Trade
Areas
4.Monetary/
Economic
Unions
Same as
common unions
but…
Free flow of
resources is
encouraged
amongst member
nations & capital
and labour are
able to move
freely.
e.g.EU
Same as
common
market but…
Member
nations no
longer regulate
their own
currencies.
They all
operate under
the one
currency
controlled by a
supranational
central bank.
e.g.EU
Gillespie, K. and Hennessey, H.D.,
2010. Global marketing. Cengage Learning.
• Promotes economic
growth for countries in
Europe.
• Peace within Europe
• Goal: “stability, a
single currency,
mobility and growth.”
• 27 members.
• Headquarters in
Brussels, Belgium.
Source: https://europa.eu/european-union/about-eu/eu-in-brief_en
https://europa.eu/european-union/about-eu/eu-in-brief_en
• Regional Comprehensive
Economic Partnership (RCEP)
– Negotiations from: 2011
– Signed: 2020
– 15 Members
– India withdrew
• Comprehensive and
Progressive Agreement for
Trans-Pacific Partnership
(CoTPP)
– Negotiations from: 2015
– Signed: 2018
– The US withdrew
• Regional trade blocs
complement bilateral
agreements
Australian Free
Trade Agreements
Source: https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
https://www.dfat.gov.au/sites/default/files/trade-investment-glance-2020
• The Australian Trade
and Investment
Commission (Austrade)
• Helps Australian
businesses expand
internationally through:
– Supporting foreign direct
investment
– Advice on export
markets
– Potential finance for
export development
Austrade | A case study
Published on 17 Sep
2015
Watch:
bit.ly/mkt303austrade
https://bit.ly/mkt303austrade
Workshop Activity
• BHP is one of the
largest companies in
Australia
• Focus is on global
resources and
worldwide mining
operations
• Think Big campaign:
bit.ly/mkt303bhp
In groups discuss what
do you think of BHP’s
approach to marketing,
taking a global
approach?
http://bit.ly/mkt303bhp
Culture and communications
- MKT303 International Marketing
- Copyright Notice
- World Trade �Organisation (WTO)
- International �Monetary Fund (IMF)
- Australian Free �Trade Agreements
What will we be learning?
Why am I learning this?
Workshop Activity
This Topic’s Big Idea
Learning Outcomes
The History of Trade
Workshop Activity
World Bank
Workshop Activity
Forms of Trade Protection
Free Trade vs Protectionism
Workshop Activity
Australia and Trade
Exports out of Australia
Imports to Australia
Workshop Activity
Facilitating Global Trade
Regional Trading Blocs
Economic Integration Types
European Union (EU)
Recent Trade Blocs
Austrade
Workshop Activity
Next Week
MKT303 International
Marketing
and communications
Workshop 8
COPYRIGHT
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969
WARNING
This material has been reproduced and communicated to you by or on behalf of
Kaplan Higher Education pursuant to Part VB of the Copyright Act 1968 (the Act).
The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of
copyright protection under the Act.
Do not remove this notice
Week Topic
1 Introduction to International Marketing
2 Political and economic factors impacting international marketing
3 Social and technological factors impacting international marketing
4 Legal and environmental factors impacting international marketing
5 Assignment presentations
6 Study week (Attendance is compulsory).
7 Trade relations
8 Culture and communications
9
Market entry
– an international marketing approach
10 Getting a product to the customer – international context
11 Product management and surviving in an international market
12 Future of international marketing and ethics
1. Understand the concept of culture.
2. Explore the components of culture and
how this shapes values and beliefs.
3. Apply a cultural understanding of
communication.
4. Analyse cultural dimensions to appreciate
differences between cultures.
5. Explore how to create culturally relevant
communications.
Marketers need to be aware of cultures to
share marketing communications and
messages
A lack of cultural understanding can lead to
failed outcomes
Revision
What did we discuss last week? Identify the
three main points that you’ve learned during
last week’s class.
Share your thoughts with the rest of the
class.
“Every human is like all other humans, some other
humans, and no other human”
Clyde Kluckhon
Culture
• A set of:
–
,
– Ideas,
– Artifacts,
– and other meaningful
symbols
• Helps individuals
communicate, interpret,
and evaluate as
member of society.
• Culture is the
personality of a society
Organisation
Political
Economic
Social
Technological
Legal
Environmental
Workshop Activity
Brainstorming Session
In groups of three to four discuss your own
culture, how did it shape your values and
ideas?
What artefacts or symbols hold meaning to
you?
• The toolkit available
to marketers
• Ensure consistency
across each element
of the marketing mix
• Need to ensure it is
relevant to
international markets
Source: https://www.leadagency.com.au/marketing-mix-best-practice-effective-examples-of-the-seven-ps/
Culture represents our:
•
Ideas
–
–
Values
– Institutions
• Behaviours
–
– Habits
– Dress
– Foods
– Leisure
• Objects
– Literature
– Art
– Music
– Artefacts
Ideas
BehavioursObjects
Beliefs
• Ideas/concepts that are
held by a culture
• Examples include
religion, traditions
• A culture can have
many beliefs
• Influences:
– Our moral views: what is
and wrong
– Life aspirations
• Shapes other elements
of culture
Source: http://www.medialocate.com/2015/09/3-reasons-why-your-website-may-sink-your-international-profits/
Values
• Beliefs set culturally
appropriate behaviours
• Often difficult to change
• Not tied to specific
objects and situations
• Widely accepted by
members of society
• Shapes our views on
gender, age, social
status
Spiritual
Values
Use Values
Lifestyle
Values
Place
Values
Ethical
Values
Adapted from: https://www.macfound.org/media/files/CSD_Culture_White_Paper
https://www.macfound.org/media/files/CSD_Culture_White_Paper
Customs
• Models of behaviour
that are acceptable by
society in specific
situations
• Conduct between
family, friends and
strangers
• Mannerisms and
behaviours
• Examples: Tipping in
the US, bowing your
head entering a
courtroom in Australia Source: https://www.eidi-results.org/what-is-eid/
https://www.eidi-results.org/what-is-eid/
• Group within a culture
who differ on some
influential dimensions
from the broader culture
• In Melbourne, Australia
hipsters became a
subculture that spanned
the inner city suburbs.
• Subcultures can also be
formed around music,
sport, fashion and other
interests Source: https://www.smithstreetbooks.com/books/how-to-spot-a-hipster/
https://www.smithstreetbooks.com/books/how-to-spot-a-hipster/
Workshop Activity
Brainstorming Session
Do subcultures occur outside of one
country? Are there differences between how
one country interprets a subculture
compared to another?
Share your thoughts with the rest of the
class.
• Marketers use the
integrated marketing
communications mix
to provide consistent
messages to
consumers
• These messages
need to be aware of
cultures within an
international market
Workshop Activity
Brainstorming Session
In groups of three to four discuss:
Why is it important for brands to be aware of
cultures when exploring international markets?
Do you have examples of where this went right
or wrong for brands?
• In Japan KFC is
commonly eaten at
Christmas
• Started in the 1970s as
an American Christmas
food and replacement
for turkey
• Only 1% of the
population in Japan
identifies as Christian
• Ad for KFC Japan:
bit.ly/kt303kfcjapan
Source: https://edition.cnn.com/travel/article/kfc-christmas-tradition-japan/index.html
http://bit.ly/kt303kfcjapan
https://edition.cnn.com/travel/article/kfc-christmas-tradition-japan/index.html
Hofstede’s
Cultural Dimensions
• Theory that analysed
cultures based on
1.
2. Masculinity vs
Femininity
3. Collectivism vs
Individualism
4. Uncertainty avoidance
5. Long-term orientation
6.
Broad criteria that
explores the values of a
culture
Hofstede’s Cultural
Dimensions Video:
Explained With Examples
of Each Dimension:
Watch:
bit.ly/mkt303hofstede
http://bit.ly/mkt303hofstede
Power Distance
Cultural considerations in International
Marketing
American Korean
How would an Australian
react to this?
• In Japan and Korea,
females may dominate
the household but in
public, males are typically
the key decision maker
• In America & the UK
women often take part in
key family decisions and
are strong leaders within
the family and society
Mexicans are very collectivist
and often live in extended
family situations
Australians are individualistic
so tend to live mainly in
nuclear families
Uncertainty avoidance
• Japanese workers like to
ensure they are never late for
work
• The Tokyo Rush Hour where
trains pack workers in, even
though trains arrive every few
seconds – workers unwilling
to take the risk to be late for
work
• Americans will take a risk on
an idea – stimulating
entrepreneurship
Japanese Rush Hour
• Long Term
Orientation
– Focus on the future
– Thrift and effort is
largely encouraged
– Values perseverance
in achieving results
– Ability to adapt
traditions and change
• Short Term Normative
– Traditions and norms
are more important
– Suspicious of societal
change
– Focus on achieving
quick results
Indulgence vs Restraint
• Indulgence
– Focus on enjoying life
and having fun
– Priorities are leisure
and spending money
as they wish
– Higher levels of
optimism
• Restraint
– Limit desires and
gratification
– Unnecessary
indulgence is
discouraged
– Higher levels of
cynicism and
pessimism
Workshop Activity
Visit the website below:
www.hofstede-insights.com/product/compare-
countries/
Then in groups of 3 or 4 apply Hofstede’s
theories to compare any culture with the
Australian culture.
Do you agree with the results?
https://www.hofstede-insights.com/product/compare-countries/
Skin whitening in India:
bit.ly/mkt303skin
Source: Loreal
http://bit.ly/mkt303skin
Workshop Activity
Brainstorming Session
Is it ethical for global brands to market skin
whitening and tanning products?
Share your thoughts with the rest of the
class.
• Gucci’s made a $800+
balaclava that depicted
blackface.
• Received global
criticism given
sensitivity of the African
American population for
these types of
depictions
• Made a public apology
blamed Italian culture
for lack of
understanding
Source: Gucci
Workshop Activity
Brainstorming Session
How should a marketer respond if marketing
material they have released is deemed by
the public to be racist?
Share your thoughts with the rest of the
class.
• When Mercedes Benz
first entered the
Chinese market it
called itself Bensi which
in Chinese translated to
rush to die
• When KFC first entered
China in the 1980s their
slogan ‘finger licking
good’ was translated to
‘bite your fingers off’
Source: KFC
• Pampers created
confusion in Japan when
the advertisement they
put out contained a stalk.
• In Western culture stalks
are associated with
delivering babies
however this folklore is
not the case in Japan.
• This mistake was only
discovered when market
research was undertaken.
Source: https://thunderbird.asu.edu/knowledge-network/its-peach-not-stork-how-pg-turned-around-its-pampers-fail-japan
https://thunderbird.asu.edu/knowledge-network/its-peach-not-stork-how-pg-turned-around-its-pampers-fail-japan
Workshop Activity
Brainstorming Session
In groups of three to four find an example of
an international campaign that went wrong.
What was the cause?
How could it have been avoided?
What was the result?
Market entry
- MKT303 International Marketing
- Hofstede’s �Cultural Dimensions
Copyright Notice
What will we be learning?
Learning Outcomes
Why am I learning this?
Workshop Activity
This Topic’s Big Idea
Culture
Workshop Activity
The Marketing Mix
The Components of Culture
Beliefs
Values
Customs
Subculture
Workshop Activity
Communication and Culture
Workshop Activity
Christmas in Japan
Power Distance
Masculinity vs Femininity
Collectivism vs Individualism
Uncertainty Avoidance
Long-term Orientation
Indulgence vs Restraint
Workshop Activity
Tanning or Whitening?
Workshop Activity
Racism in Global Marketing
Workshop Activity
Lost in Translation
Lack of Context
Workshop Activity
Next Week
MKT303 International
Marketing
Market entry
Workshop 9
COPYRIGHT
COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969
WARNING
This material has been reproduced and communicated to you by or on behalf of
Kaplan Higher Education pursuant to Part VB of the Copyright Act 1968 (the Act).
The material in this communication may be subject to copyright under the Act. Any
further reproduction or communication of this material by you may be the subject of
copyright protection under the Act.
Do not remove this notice
Week Topic
1 Introduction to International Marketing
2 Political and economic factors impacting international marketing
3 Social and technological factors impacting international marketing
4 Legal and environmental factors impacting international marketing
5 Assignment presentations
6 Study week (Attendance is compulsory).
7 Trade relations
8 Culture and communications
9 Market entry – an international marketing approach
10 Getting a product to the customer – international context
11 Product management and surviving in an international market
12 Future of international marketing and ethics
4
1. Examine problems faced by firms in international business
when selecting a new international market
2. Assessing a country’s attractiveness in terms of its potential,
its membership of trading blocs, its competitive intensity and
its entry barriers
3. Create a portfolio of the most attractive foreign markets to
enter given the circumstances of the firm and the potential
offered by the market
4. Recognise the different available modes for entering an
international market and the advantages and disadvantages
of each
5. Explain the differences between export-based entry modes,
manufacturing-based entry modes and relationship-based
entry modes
Market entry explores how you enter a new
market.
This is integral knowledge for any marketer
considering international opportunities.
Revision
What did we discuss last week? Identify the
three main points that you’ve learned during
last week’s class.
Share your thoughts with the rest of the
class.
“If your dreams don’t scare you,
they’re not big enough.”
Ellen Johnson Sirleaf
8
International
Market Selection
Two critical questions:
1. Which market?
• Which country and
why?
• What are the
advantage and
disadvantages?
2. How to enter?
• How do I serve this
market?
• What are the costs and
opportunities?
Microenvironment
(the firm)
Macroenvironment
Stage 1: Domestic Regulation
and Management Preferences
• Which international
markets to exclude
regardless of their
apparent potential?
• Need to consider
regulation and policy and
what the organisation can
do in a country.
• Outcome: exclude
markets with
unfavourable Australian
regulations.
Examples
Trade restrictions between the
domestic country and international
(eg US and Iran)
Particular views of management
towards countries
Stage 2: Initial Entry
Assessment
• Which remaining
overseas markets have
the least attractive
political and social
environments?
• Which remaining
overseas markets are
least attractive because
of their nature and
potential size?
Examples
Is there political instability?
Do political processes make it too
difficult to do business?
Is the market size too small?
Stage 3: Competitive
Environment
• Consider the amount of
competitors in a country
• Eliminate overseas markets
with substantial trade
barriers.
• Countries protecting
domestic industry or
favouring other countries to
trade with.
• Overseas markets to avoid
when competitors are
saturating the market.
Examples
Are there too many competitors?
Do local subsidies exist?
Are there trade barriers through tariffs
or quotas?
Stage 4: Market
Responsiveness
• Which remaining
international markets
prohibit the presence of
your type of company?
• Which international
markets are unattractive
because of costs and
problems of reaching
them from the home
market?
Examples
Do laws or cultural values prohibit
operations? (eg alcohol in Saudi
Arabia)
Is it too difficult to get the
product/services to consumers due to
transport or other factors?
Stage 5: Internal
Trade-off Analysis
• Unattractive markets
due to commitment of
resources and
accessibility.
• Do any of the markets
still under
consideration fail to
meet the company’s
objectives or match its
competitive
advantages?
Examples
What costs are required to enter the
market?
Does the company have priorities
elsewhere?
Workshop Activity
In groups of three to four:
Recall the PESTLE
analysis – how would this
tool help you with these
five stages?
Share your discussion
with the rest of the class.
Answers the questions:
• Does the organisation
want to invest a
substantial amount of
resources?
• Should multiple
countries be entered at
once?
• What risks are the
organisation willing to
take?
• Timing?
Source: This Photo by Unknown Author is licensed under CC BY-NC
http://www all.com/globe-png
https://creativecommons.org/licenses/by-nc/3.0/
• Learn from previous
market and enter
based on these
learnings.
• Fewer resources and
risks; provides for
learning experiences;
may preclude
economies of scale.
Source: Disney
Disneyland believes in an incremental
expansion approach learning from each
city they open before stating another.
1954 – Anaheim
1965 – Orlando
1971 – Florida
1983 – Tokyo Disneyland
1995 – Disneyland Paris
2005 – Hong Kong Disneyland
2016 – Shanghai Disneyland
• Open in multiple
countries at the same
time.
• Resource intensive,
higher operating risk,
acquire overseas
experience rapidly,
facilitate economies
of scale.
Source: https://investor.uber.com/news-events/news/press-release-details/2020/Uber-Announces-Results-for-Fourth-Quarter-and-Full-Year-2019/
Uber
Between 2013 to 2014 Uber
accelerated its international expansion.
The company now operates in about
400 cities, up from fewer than 100 at
the start of 2014.
Uber’s international business made a
loss of $237 million in 2014.
2013 – loss was $32 million.
2019 – loss was $615 million
https://investor.uber.com/news-events/news/press-release-details/2020/Uber-Announces-Results-for-Fourth-Quarter-and-Full-Year-2019/
• Resources
concentrated in
limited number of
markets, reduced
costs, operating risks,
economies of scale.
• Coca Cola is an
example of a brand
that uses a
concentrated
approach.
Source: Coca Cola
• Spreads risk
exposure, broadens
market knowledge,
strategic flexibility,
resources spread
thinly
• Virgin is a brand that
uses a diversified
approach
Source: http://marktruelson.com/a-branded-house-masterpiece/
Workshop Activity
Let’s watch this video:
bit.ly/mkt303virginbrands
Should Virgin continue the diversification
strategy?
http://bit.ly/mkt303virginbrands
22
Modes of Entering Foreign
Markets: Overview
1. Export-based entry
2. Manufacturing-based
entry
3. Contract
manufacturing,
offshoring and
countertrade
4. The ‘born global’
entry mode
23
• In indirect
exporting, a
manufacturer turns
international sales
over to a third party,
• while in direct
exporting, a
manufacturer
handles the export
process itself.
• Indirect export
– Minimum resources
commitment
– Third party distributor
• Direct exporting
– Greater resources/control
– Foreign agent
– End-user
• Establish sales
office in foreign
market
• Licensing
• Franchising
24
• A franchise is a type of license
• A party (franchisee) acquires the
license to have access to a
proprietary knowledge,
processes
and trademarks (franchiser)
• Allow the party to sell a product
or provide a service under the
business’s name.
• Increasing in importance
domestically and internationally
• Shifts costs to the franchisee
(average $500,000 in Australia)
Workshop Activity
• McDonald’s Franchise
• THE FOUNDER Official Trailer (2016)
• McDonald’s Franchise Movie HD:
bit.ly/mkt303founder
• Can you think of any other recently
successful franchise? Share it with the
person sitting next to you.
http://bit.ly/mkt303founder
• Often referred to as foreign direct
investment (FDI)
• Can take a number of forms:
– Joint venture
– Consortia
– Acquisition
– Greenfield operation
• Balance risks and return
• A joint venture (JV) is a
business arrangement in which
two or more parties agree to
pool their resources for a
specific project.
• This task can be a new project
or any other business activity.
• In a joint venture (JV), each of
the participants is responsible
for profits, losses and costs
associated with it.
• The venture is its own entity,
separate and apart from the
participants’ other business
interests.
Examples:
Queens Wharf in Brisbane – Joint
venture between Star
Entertainment Group, Chow Tai
Food and Far East Consortium.
Source: https://queenswharfbrisbane.com.au/news/destination-brisbane-consortium/
Workshop Activity
• In groups research examples through of
the following modes of entry and then
share with the class.
• Australian export company
• Australian-China joint venture company
• Australian based franchise company
Consortia
• A consortium is a group
made up of two or more
individuals, companies or
governments that work
together toward achieving
a chosen objective.
Acquisition
• An acquisition is a corporate
action in which a
company buys most, if not
all, of another firm’s
ownership stakes to
assume control of it. An
acquisition occurs when a
buying company obtains
more than 50% ownership
in a target company.
Greenfield Operation
• A greenfield investment is a
form of foreign direct
investment where a parent
company builds its operations
in a foreign country from the
ground up.
• In addition to the construction
of new production facilities,
these projects can also include
the building of new distribution
hubs, offices and living
quarters.
31
3. Contract Manufacturing,
Offshoring and Countertrade
• Contract manufacturing
– Marketing firm contracts
the manufacturing of the
product to overseas
manufacturers but retains
control of the marketing of
the product
• Offshoring
– Involves the relocation to
another country of
business processes that
were previously
undertaken by the firm
itself
• Countertrade
– A foreign market entry
method that involves
linking of an import and an
export transaction in a
conditional manner
• Each option has
associated risks and
returns
• For example: Contact
manufacturing – what if
the overseas
manufacturer copies the
product?
• Born global is designed with
a vision of becoming global
• Globalises rapidly without
any preceding long term
domestic or
internationalization period.
• Usually born global
companies are small
companies, technology
oriented companies that
operate in international
markets from the earliest
days of their establishment.
Source: Uber
Getting the product to the customer – an
international approach.
- MKT303 International Marketing
- International �Market Selection
- Stage 1: Domestic Regulation �and Management Preferences
- Stage 2: Initial Entry �Assessment
- Stage 3: Competitive �Environment
- Stage 4: Market �Responsiveness
- Stage 5: Internal �Trade-off Analysis
- Modes of Entering Foreign Markets: Overview
- 3. Contract Manufacturing, �Offshoring and Countertrade
Copyright Notice
What will we be learning?
Learning Objectives
Why am I learning this?
Workshop Activity
This Topic’s Big Idea
Determine Suitable Markets
Workshop Activity
Depth of Entry
Incremental Entry
Simultaneous Entry
Concentrated Approach
Diversified Approach
Workshop Activity
1. Export-based Entry
International Franchises
Workshop Activity
2. Foreign Direct Investment
Joint Venture
Workshop Activity
Consortia & Acquisition
Greenfield Operation
4. Born Global
Next Week
AssessmentInformation
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material
in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection
under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a
registered higher education provider CRICOS Provider Code 02426B.
Assessment 2 Information
Subject Code: MKT303
Subject Name: International Marketing
Assessment Title: Country Cultural Analysis
Assessment Type:
Length:
Individual, Video Recording
7 to 8-minute video (no more)
Weighting: 30%
Total Marks:
Submission:
100
Online
Due Date: Week 10
Your task
Individually, you are required to record a 7 to 8-minute video in which you are to critically evaluate and
compare two countries that would be suitable for international expansion based on the provided
scenario in the assessment description section. Please note that the work you produce in this
assessment will serve as the basis for your final assessment submission in this subject.
Assessment Description
The purpose of this assessment is to assess students’ ability to identify and critically evaluate the
significance of factors in international external environments by linking in relevant marketing concepts,
theories and notions to international market situations.
Assessment Instructions
The Bundaberg Brewed Drinks Company which is located in Bundaberg, Queensland, just recently had
a successful entry into the US, South Korea, Germany and China soft drinks markets. Based on this
success, the Flemings family are now planning to introduce their iconic ginger beer product in Saudi
Arabia and Russia.
Presume that the company has recently hired you as an international marketing consultant. In taking on
this role, you were tasked to analyse both countries by using the framework of Hofstede Cultural
Dimensions. In conducting this analysis, you must identify which of the countries mentioned above is
the most suitable option for further international expansion by considering the similarities and
differences, as well as any other competitors servicing these countries. Based on your analysis, you
are then required to formulate recommendations on how the Bundaberg Brewed Drinks Company
should adjust its marketing mix, including any modifications to the ginger beer product to suit the
market.
To deliver your findings, you are required to record a 7 to 8-minute video in which you will present the
Flemings family with the results of your analysis. In preparing to record your video, you are to design a
set of PowerPoint slides that will serve as visual aids to help you deliver your findings constructively
and efficiently.
Assessment Information
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material
in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection
under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a
registered higher education provider CRICOS Provider Code 02426B.
You must use at least 8 sources of information to support your analysis and recommendations.
These may include websites, government publications, industry reports, census data, journal articles,
and newspaper articles. These sources should be presented as in-text citations and a reference list at
the end of your video – using the Kaplan Harvard Referencing Style. Likewise, you are required to
include appendices section at the end of your video that contains photos or screenshots of the
Hofstede Cultural Dimensions and screenshots of the competitors that you have found.
Assessment Submission
Students are encouraged to submit their work well in advance of the deadline to avoid any possible
technical difficulties. For those students who have limited experience in video assessment submissions,
it is recommended to read video FAQs document that is available to you under the assessments tab in
MyKBS.
Late assignment submission penalties
Penalties will be imposed on late assignment submissions in accordance with Kaplan Business School
“late assignment submission penalties” policy.
Number of
days
Penalty
1* – 9 days 5% per day for each calendar day late deducted from the total marks
available
10 – 14 days 50% deducted from the total marks available.
After 14 days Assignments that are submitted more than 14 calendar days after the
due date will not be accepted, and the student will receive a mark of zero
for the assignment(s).
Note Notwithstanding the above penalty rules, assignments will also be given
a mark of zero if they are submitted after assignments have been
returned to students
*Assignments submitted at any stage within the first 24 hours after the deadline will be considered to
be one day late and therefore subject to the associated penalty
For more information, please read the full policy via https://www.kbs.edu.au/about-us/school-policies
https://www.kbs.edu.au/about-us/school-policies
Assessment Information
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material
in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection
under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a
registered higher education provider CRICOS Provider Code 02426B.
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand the meaning and consequences of
cheating, plagiarism and other academic offences under the Academic Integrity and Conduct Policy.
What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?
Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.
Time Limits for Video Assessments
Submissions that exceed the word or time limit by more than 10% will cease to be marked from the
point at which that limit is exceeded.
Study Assistance
Students may seek study assistance from their local Academic Learning Advisor or refer to the
resources on the MyKBS Academic Success Centre page. Click here for this information.
http://www.kbs.edu.au/current-students/student-policies/
https://elearning.kbs.edu.au/course/view.php?id=1481
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further
reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86
098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
MKT303 Assessment 2 Marking Rubric – Country Cultural Analysis 30%
Marking
Criteria (__/100)
F (Fail)
0-49%
P (Pass)
50-64%
C (Credit)
65-74%
D (Distinction)
75-84%
HD (High Distinction)
85-100%
Cultural Dimensions
__/30 marks
You have provided incoherent
or no analysis of the countries
with limited or no comparison
and/or evaluation of the
Hofstede Cultural Dimensions
– supporting appendices are
not
provided.
You have analysed both of the
countries by comparing and/or
evaluating some of the Hofstede
Cultural Dimensions – supporting
appendices provided.
You have analysed both of the
countries by comparing and
evaluating most of the Hofstede
Cultural Dimensions – supporting
appendices provided.
You have analysed both of the
countries by comparing and
evaluating each of the Hofstede
Cultural Dimensions –
supporting appendices
provided.
You have critically analysed both of
the countries by expertly comparing
and evaluating each of the Hofstede
Cultural Dimensions – supporting
appendices
provided.
Competitors
__/20 marks
You have identified incorrect,
or no competitors with
incoherent or no discussion of
how they adapted to the
cultural values – supporting
appendices are not provided.
You have identified competitors in
both of the countries with limited or
no separation between direct and
indirect competition – a limited
discussion of how they adapted to
the cultural values – supporting
appendices provided.
You have identified the direct and
indirect competitors in both of the
countries supported by an
adequate discussion of how they
adapted to the cultural values –
supporting appendices provided.
You have identified the direct
and indirect competitors in both
of the countries supported by a
detailed analysis of how they
adapted to the cultural values –
supporting appendices
provided.
You have identified the direct and
indirect competitors in both of the
countries supported by a
comprehensive analysis of how they
adapted to the cultural values –
supporting appendices provided.
Recommendations
__/20 marks
You have provided incoherent
or no recommendations that
demonstrate an inadequate
understanding of the required
marketing mix adjustments
and/or
product modifications.
You have provided basic
recommendations that demonstrate
an adequate understanding of the
required marketing mix adjustments
and/or product modifications.
You have provided detailed
recommendations that
demonstrate a suitable
understanding of the required
marketing mix adjustments and/or
product modifications.
You have provided detailed
recommendations that
demonstrate an advanced
understanding of the required
marketing mix adjustments and
product modifications.
You have provided comprehensive
recommendations that demonstrate
an expert understanding of the
required marketing mix adjustments
and product modifications.
Use of supporting
evidence
__/10 marks
Your research lacks focus
and/or you have chosen
unsuitable or bogus sources,
which do not link to the
required assessment task.
You have demonstrated a basic
level of research, which is
supported by a reasonable
selection of sources.
You have demonstrated
substantial research, which is
supported by a reasonable
selection of
sources.
You have demonstrated
substantial research, which is
supported by an appropriate
selection and range of sources.
You have demonstrated extensive
research, which is supported by an
appropriate selection and range of
sources.
Presentation Audio
and Visuals
__/10 marks
Your presentation was
inaudible and/or it lacked
visual slides.
Your presentation was audible with
slides but lacked a professional
image, contained spelling/grammar
mistakes and/or presenter read
directly from slides.
Your presentation was audible
with slides with only minor
spelling or grammar mistakes.
Your visual and audio elements
were engaging throughout the
video.
Your presentation was audible
with slides that had no spelling
or grammar mistakes. Your
visual and audio elements were
well designed and engaging
throughout the video.
Your presentation was audible with
slides that had no spelling or
grammar mistakes. Your visual and
audio elements were excellently
designed, reinforced key points and
engaging throughout the video.
In-text citations and
Reference List
__/10 marks
Neither in-text referencing
and/or reference list adheres
to Kaplan Harvard
Referencing Style.
In-text referencing or the resultant
reference list adheres to Kaplan
Harvard Referencing Style, with
some errors.
Both, in-text referencing and the
resultant reference list adhere to
Kaplan Harvard Referencing
Style, with some errors.
Both, in-text referencing and
the resultant reference list
adhere to Kaplan Harvard
Referencing Style, with only
occasional minor errors.
Both, in-text referencing and the
resultant reference list adhere strictly
to Kaplan Harvard Referencing
Style, with no errors.
Feedback and Grades will be released via MyKBS.