BUS615 Study Guide

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Study Guide Structure

In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit. 

Beneath each learning outcome are:

• questions for you to answer independently;
• a brief summary of the learning outcome topic; and
• and resources related to the learning outcome. 

At the end of each unit, there is also a list of suggested vocabulary words.

How to Use this Study Guide

1. Review the entire course by reading the learning outcome summaries and suggested resources.
2. Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.

By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.

Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!

Unit 1: Introduction to International Marketing

1a. Identify current trends in global and international marketing

• What are the various environmental factors that companies must consider before entering a foreign market?
• What are the different ways a company can enter a foreign market?
• What is the role of the WTO (World Trade Organization)?
• What are some of the challenges multinational corporations may face?

Entering the international marketplace enables a company to increase profitability and expand their base of customers. However, there are many factors to consider before choosing a foreign market for expansion. These include the economic environment, the competitive environment, the cultural environment, the political/legal environment, the technological environment, and the ethical environment.
 
When companies enter a foreign market, they face competition from other foreign entries and companies that are native to that nation. As a result, companies may be at a disadvantage in those markets and must consider which entry strategy will provide them with the best opportunities for success. These entry strategies include exporting, licensing and franchising, joint ventures, direct investment, US Commercial Centers (for American companies), trade intermediaries, and alliances.
 
Foreign market entry can be difficult to navigate, especially given the differences between each country's social, political, and cultural environment. The WTO (World Trade Organization) helps regulate trade between nations and provides a platform from which companies can form agreements, resolve disputes, and ensure compliance. Some of the issues the WTO addresses include trade sanctions, trade barriers, and fair trade.
 
For multinational corporations (MNCs), there are a variety of challenges that may affect their ability to penetrate foreign marketplaces effectively. These include public relations, which impacts corporate image and branding; ethics, which should be at the highest levels in all marketplaces; organizational structure, which presents the challenge of balancing capital investment with value; and leadership, which necessitates talented managers with multicultural skills.
 
To review, see Introduction to International Marketing and Internationalization Theories for Global Marketers.

1b. Outline the decision sequence that marketers go through when deciding to move into an international market

• What are the differences between corporate-level, business-level, and functional-level activities when expanding into a foreign marketplace?
• What factors should be evaluated when conducting a situation analysis?
• What is the final step for functional-level activities?
  

Corporate-level activities begin with setting objectives and incorporating data about the markets under consideration. Decisions about entering a global market are made, with consideration given to all stakeholder expectations.
 
Business-level activities include selecting the mode of entry, a situation analysis, and setting marketing objectives.
 
Functional-level activities include selecting target markets, identifying marketing strategies and tactics, organizing and allocating resources, and making corrections.
 
A situation analysis is quite in-depth and involves several steps. A thorough analysis of the external environment is needed, including information about the cultural and political environment, technology, culture, consumer preferences, competition, and the economy. The company must take a serious look at their level of commitment for that marketplace and determine the available level of resources and ability to operate in that location.
 
One of the most important steps in any marketing strategy is the last one, which involves an evaluation of the plan. The final step for the functional activities of an organization is to ensure that the plan is under control throughout the process. This is where changes can occur to ensure that the plan is on target and that corrections are made where needed.
 
To review, see Introduction to International Marketing.

1c. Classify a given country's economy as a developed, emerging, or developing market

• What are the characteristics of a developed market?
• Why are there inconsistencies associated with defining an emerging market?
• What are some of the developing markets in the world, and what are the characteristics that define these nations?
  

Developed markets are also known as advanced economies and are considered post-industrial nations. A developed market is generally one with a democratically elected government. Per capita income is relatively high, there is high-quality healthcare, and life expectancies tend to be long. The population has equal access to education, and income levels tend to be high. Some of the major developed markets of the world include the United States, countries in Western Europe, Japan, South Korea, and Australia. Even though these countries have transitioned from manufacturing to service industries, manufacturing still plays a role in their economic structure.
 
The definition of an emerging market depends on who is doing the defining. For example, a private business may view an emerging market differently from a financial institution, the WTO, the United Nations, or other global organizations. However, there are also common characteristics that can help a company determine whether or not that market is suitable for expansion and has the potential for marketing success. Some of these characteristics include the size of the population, trade and regulatory policies, education, and the overall well-being of the people. Generally, an emerging market is one where the society is moving toward a free-market economy, a growing middle class, and improvements in the standard of living.
 
Developing markets are those with poor infrastructures, high levels of poverty, and low income levels. Industries in those nations tend to be focused on natural resources and agriculture.
 
The Middle East encompasses several nations that are quite wealthy, but the uncompetitive marketplace and unequal access to goods and services can provide opportunities for global business. The UAE is an oil-rich area with great wealth from these resources. However, the population consists of migrant workers from many nations, and there are many issues associated with the rights of women, children, and minorities.
 
Africa continues to present obstacles to growth. There is a weak infrastructure with associated high energy costs. Tariffs continue to deter new investments, and consumer spending power is limited due to most people living below the poverty line. Additionally, corruption is ongoing throughout the continent, as well as political unrest.
 
Nigeria's challenges are evident in its ongoing civil wars, military rule, and violence. The country is also divided between different ethnicities and religions. The country's main industries include a variety of natural resources, textiles, food products, construction materials, and chemicals. However, violence in the oil-producing Niger Delta region, coupled with government corruption, poverty, and poor infrastructure, continues to present challenges to nations that choose to enter this global marketplace.
 
To review, see Economic Development in the World.

1d. Describe the role of international organizations and trade agreements in international marketing 

• What are the four components of Porter's Competitive Advantage Theory?
• What was the overall principle of The General Agreement on Tariffs and Trade (GATT)?
• What is the purpose of the World Trade Organization (WTO)?
• How does the UN Global Compact impact global trade?
  

Porter's Competitive Advantage Theory seeks to explain why some nations are more competitive in certain industries than others. These factors include local market resources and capabilities, local market demand conditions, local suppliers and related industries, and local firm characteristics. Evaluating local market resources and capabilities includes investments in labor, education, technology, and infrastructure. Local market demand conditions facilitate innovation, trends, and sustainable competitive advantages. By centering in one area, related industries can take advantage of the suppliers that are present and strengthen an entire industry and related industries. The characteristics that describe local firms include strategies, industry structure, and rivalry within an industry, encouraging innovation and competitiveness. Along with other theories about how companies operate, Porter also notes that governments play a role in how competitive a foreign company may be in any given nation. This theory helps companies better understand international trends.
 
GATT comprised a set of rules that governed trade, mainly through the reduction of tariffs. The principle of GATT was that trade should be free and equal and that countries should not show preferential treatment toward any of the other member nations.
 
As trade became more widespread and complex, the World Trade Organization (WTO) was created. The organization's main purpose is to enable member countries to dispute, discuss, and debate issues related to global trade. While there are no formal agreements in place, this provides countries with a forum to explore global trade issues. As economies have developed and expanded, the WTO seeks to address service industries, intellectual property, and counterfeit goods.
 
The UN Global Compact is a partnership created by the UN that is outside of the boundaries of traditional diplomacy. There are ten principles of this pact, including Human Rights, Labor, the Environment, and Anti-Corruption. Companies can further enhance the value they provide to their customers through these actions while also demonstrating that they are good global citizens. Doing so enables organizations to meet the needs of their customers, suppliers, investors, and other stakeholders, in addition to governments and non-government entities.
 
To review, see International Business and Trade.
 

1e. Use the PESTEL business thinking model to assess global marketing environments for short and long-term decision-making 

• What are the components of an organization's environment, and why does it matter?
• What are the three steps associated with conducting a PESTEL analysis?
• What does PESTEL stand for, and how do these factors help companies make effective business decisions?
  

A company's environment consists of two components. These are the macroenvironment, which includes social and technological trends, demographics, and economic factors; and the competitive environment, which comprises all the organizations within the same industry and those industries that can be considered substitutes.
 
These factors are important because they help companies identify the resources they will need to produce their goods and services. They also enable the company to identify available opportunities and any threats that may exist in a marketplace. Understanding these factors can also help a company shape the decisions they make for entering a new market and the goals they set for the organization.
 
The first step in conducting a PESTEL analysis is to consider the importance of each factor within the context of the organization's offerings and position in the marketplace.
 
The second step is to identify the relevant information and categorize the data as it applies to each factor. The final step is to collect and analyze the data and come to conclusions about how the information is meaningful to the organization. Before decisions are made, however, companies should consider the impact of each factor and evaluate the different outcomes of any actions taken.
 
The PESTEL analysis is a useful business tool that explores Political, Economic, Social, Technological, Environmental, and Legal factors. Since these factors can influence whether a company will achieve success or failure, it is important to understand trends and be prepared to address any issues that might arise. Advanced knowledge and preparation are key.

• An evaluation of the political factors includes tax policies, trade restrictions and tariffs, and the levels of government stability.
• The economic factors include interest and inflation rates, GDP, unemployment rates, disposable income levels, and economic status.
• The social factors include demographics, cultural trends, and levels of consumer activism.
• The technology factors explore new product development, automation, and the evolution of service industries.
• The environmental factors include weather patterns and significant events like natural disasters that might have occurred.
• Finally, legal factors include laws regarding employment, health and safety, antitrust, and discrimination.

To review, see PESTEL Analysis and the Global Environment and PESTEL Analysis and Global Opportunities.

1f. Assess how changing technology influences international marketing 

• How does social media fit into other aspects of a company's marketing efforts?
• What are some of the marketing objectives that are common across social media platforms?
• What are some of the challenges associated with social media marketing activities?
  

Social media activities are an important part of an integrated marketing communications (IMC) strategy.
 
Social media advertising can help a company gain awareness of their products and services and help generate sales. It can drive traffic to the company's website and other online platforms where a company has a presence. Foot traffic to brick-and-mortar stores can also be encouraged, as can other activities that are not online-oriented.
 
While different social media platforms appeal to specific segments of the population, many of the goals and objectives for having a presence on those sites are common across the medium. For example, building brand awareness is a primary objective across the social media environment. This enables a company to expand their message to wider audiences and achieve higher sales levels. User engagement is a desired goal, as well. More and more, interacting with consumers enables companies to create personal connections with their customers, which leads to greater customer loyalty. Lead generation is essential for success, as well. Creating a pipeline of potential customers enables companies to increase their customer base while also replacing customers that may have been lost. Finally, companies seek to increase conversion rates, which relate to how well the company meets the needs and desires of the consumer.
 
As with all marketing activities, social media is not an exact science. Many of the challenges of traditional marketing activities apply to social media marketing efforts, as well. For example, a great deal of time and effort is needed to create an effective campaign that will connect with the audience. Content must be consistent and of high quality. As with all marketing messages, consumers may not respond positively, and the platform on which the message is distributed might not be appropriate for reaching the target market. Finally, it is challenging to make connections between marketing activities and ROI. This applies to all marketing activities, whether through traditional or digital outlets.
 
To review, see The Impact of Social Media.
 

Unit 1 Vocabulary

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• business-level activities
• corporate-level activities
• developed market
• developing market
• economic factors
• emerging market
• entry strategies
• environmental factors
• functional-level activities
• GATT
• integrated marketing communications (IMC) strategy
• legal factors
• multinational corporations (MNCs)
• PESTEL analysis
• political factors
• Porter's Competitive Advantage Theory
• situation analysis
• social factors
• technology factors
• UN Global Compact
• WTO (World Trade Organization)

Unit 2: International Business Cultures

2a. Describe issues that are important for culturally sensitive international marketing, such as language, gender, customs, and art

• What are the different kinds of cultures that exist?
• How does language impact the development of a marketing campaign in the global marketplace?
• What is the impact of customs, taboos, and values on consumer behavior across the globe?

2b. Explain Hofstede's cultural framework and how it provides marketers with important information about differences between countries and how to manage such differences

• What are the six key value dimensions of Hofstede's cultural dimensions?
• What are some of the countries that exhibit high and low power distance cultures?
• What are the characteristics of a masculine vs. feminine culture?
• What is the impact of uncertainty avoidance in the workplace?

2c. Differentiate between ethnocentric, polycentric, and geocentric approaches in international marketing

• What does Thomas Friedman mean when he says that we live in a flat world?
• What are some of the challenges companies face when developing marketing strategies in the global marketplace?

2d. Evaluate the demographic, geographic, behavioral, and psychographic bases for segmenting international markets

• What are the elements that encompass macro-segmentation?
• What are the four categories of micro-segmentation?
• What are the pros and cons of using demographic data for market segmentation?

2e. Identify cultural considerations that can be used in determining communication strategies in international markets

• What aspects of the cultural environment in Germany did Walmart miss when they expanded their operations in this marketplace?
• Why was Walmart's low-price strategy ineffective in the German marketplace?
• Why did Walmart experience a product and service failure in the German marketplace?

Unit 2 Vocabulary

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• behavioral characteristics
• demographic characteristics
• ethnocentric
• geocentric
• Hofstede's cultural dimensions
• macro-segmentation
• micro-segmentation
• national culture
• organizational culture
• polycentric
• regiocentric
• subculture

Unit 3: International Marketing Departments

3a. Explain the key functions of international marketing departments, such as market research, product management, price setting, distribution, marketing communications, and matching products to customers 

• What are the first factors that a company should seek to uncover when beginning to research a foreign market for expansion?
• What are the pros and cons of implementing a straight product extension vs. a product adaptation when entering a foreign market?
• There are a variety of pricing strategies that companies can implement for their goods and services. What objectives do these various strategies enable a company to achieve?
• What are the two functions of the supply chain?
• What are the four generic global strategies of The Value Proposition Globalization Matrix?
• What are the multidimensional perspectives a company should take when determining which global markets to target?
  

When companies are exporting for the first time, they should conduct research about the potential of the markets they are considering. They should look at other markets where similar products are being sold and the competitors who are providing those products. Product requirements and standards should be explored, as well as whether any product modifications are needed. There are sure to be local taxes, shipping costs, and other related expenditures, so this area should be researched, as well. Pricing strategies should be looked at carefully to see what the market can bear, and distribution channels should be explored.
 
A straight product extension is when a company sells their merchandise in a foreign marketplace without making any changes at all. The benefits are that no new investments are needed for research, development, or manufacturing. However, products might not meet local needs, preferences, and tastes, plus the overall cost might be higher than if a product was manufactured locally.
 
Product adaptation is when a company makes changes to better meet local needs and tastes. These changes might be to the product itself, the packaging, language, pricing strategies, and product sizing. However, companies can easily make mistakes when it comes to understanding local needs. Translations might not be accurate, package images might not be appropriate, and product modifications may not fit with local norms and culture.
 
Pricing strategies serve many purposes. They enable companies to earn a profit and maintain a position in the marketplace. Companies are able to earn higher sales levels based on their choice of pricing approach, which, in turn, leads to greater levels of market share. Finally, the price has a direct correlation to the product image. Higher-priced items convey an image of a luxury or high-end brand, while low-price strategies generate images of budget or cost-friendly products.
 
The two functions of the supply chain and product distribution are to meet the needs of the manufacturer and the consumer. The exchange function – the first part of the distribution channel – involves the sale of merchandise to the various members of the distribution channel. The next phase of the process moves the goods through the exchange channel and into the hands of the ultimate user.
 
The distribution process enables companies to earn a profit while also meeting the needs of consumers. An efficient and effective process is an essential part of a business' operations and requires a great deal of time, effort, and planning. This is an important function.
 
The four generic global strategies include a pure aggregation approach. This is also known as a global marketing mix strategy, where the offer and the message communicated are the same. A global offer strategy is when the offer is the same, but the message is adapted to a specific marketplace. A global message strategy is when the offer varies from market to market, but the message is the same. Finally, a global change strategy is when both the offer and the message are customized for each market.
 
When identifying international markets to target, companies should take a look at the differences between the markets they must enter in order to achieve their global goals and markets that are desirable but not essential. Markets that companies should be entering include those that increase sales volume, illustrate market leadership, and where a competitive advantage can be achieved.
 
To review, see:

• Conducting Market Research
• Global Products
• Basics of Pricing
• Global Channels and Supply Chains
• Global Promotions
• Target Market Selection

3b. Develop an international marketing plan for a product being sold in a new country market

• What are the different levels at which different decisions are made when beginning the process of creating an international marketing plan?
• What is the purpose of the Executive Summary in the International Marketing Plan?
• What are the benefits of creating a SWOT analysis within an International Marketing Plan?
  

At the corporate level, overall objectives are set for potential markets, followed by the decision to go global. Stakeholders' expectations are also evaluated. Business-level objectives include a situation analysis, which encompasses the different international modes of entry, as well as an in-depth external analysis. The functional level, the last of these analyses, looks at specific activities, including selecting target markets, identifying and implementing marketing strategies, allocating resources, and controlling the process.
 
Writing an executive summary can be challenging. That is why it should be the last part of the document that is written. The executive summary, which should be no more than a page or two, includes all of the relevant information contained in the report, including a brief overview of the market, the industry, and the product or service offered. Other information should include a competitive analysis, marketing strategies, and the target markets being sought. Once this information is completed within the report, it is easy to take the most relevant pieces of information and create the Executive Summary for those who want to gain a basic understanding prior to reading the entire Plan.
 
A SWOT analysis is a very useful tool for evaluating a company, as well as the markets in which the organization operates. By delving into a company's internal strengths and weaknesses, the organization can leverage the areas in which they excel and identify areas in which improvements are needed. This can include strengths, such as having a competitive advantage, brand image, company longevity, and weaknesses including a lack of innovation, a need for expanded marketing efforts, or a shortage of qualified managers.
 
By evaluating opportunities and threats that exist, a company can identify areas of growth, new target markets, trends, or new ways to reach consumers, as well as gain an understanding of the competition in a marketplace, the legal and technological challenges that exist, or cultural factors that could impact organizational success in a foreign market.
 
To review, see Writing an International Marketing Plan and Marketing Plan Basics.

3c. Analyze how the 4Ps and 4Cs of marketing change depending on the context of buyer and country

• What are the primary factors marketers must consider when launching promotions in global markets?
• Why is product placement challenging in global markets?
• How do the 4Ps correlate to the 4Cs?
• What is the primary focus of a marketing strategy?

Marketing in the global environment is more complex than in the company's home market, and organizations must consider a wider variety of factors beyond demographics and lifestyles. When developing promotional strategies, companies should be prepared to make changes and adjustments to respond to these variations so that global success can be achieved. Language is an important element to consider and should be given a great deal of attention, especially as it relates to translations of product names and campaigns. Colors have different meanings in different cultures and should be researched carefully to ensure that consumers are not offended or used in incorrect ways. Values based on cultural or religious beliefs also impact how consumers make their decisions, and companies should be keenly aware of how their messaging might address these factors. Finally, business is conducted in different ways across the globe, and interactions may vary depending on the cultural or political environment that exists.
 
While all elements of the marketing mix (the 4Ps) are important when developing marketing strategies, product placement and how consumers can obtain goods in global markets can be challenging. For example, not all markets have the same access to goods as consumers do in the US. Vending machines may not be available, grocery stores may not carry the same large varieties of merchandise, and bulk purchases may not be possible, as well. Product availability should be evaluated based on position in the marketplace relative to the competition, as well as where competitive products are available. Customizing strategies for product placement in different countries is essential for gaining a competitive advantage on a global scale.
 
The 4Cs expand on the 4Ps of the marketing mix and place a greater emphasis on the customer. The "product" aspect of the 4Ps aligns with "customer solution", where a company will sell only what the customer wants and needs. "Price" relates to "cost" and includes factors such as the time it takes to obtain a good or service, what it might cost a consumer to not buy a product, and other aspects of the total cost of satisfying a need or want. The "communication" element of the 4Cs relates to "promotion" in the 4Ps and encompasses all communication between the company and their customers, including advertising, personal selling, public relations, and other forms of messaging. Finally, "place" as an element of the 4Cs refers to "convenience" and how people are able to obtain goods and services. This also includes the search for a product, details about a product, and where/how a consumer prefers to make their purchase.
 
When developing the appropriate marketing mix for any marketplace, the focus of all activities should be on the customer. Companies should take significant steps to identify the needs of the business as they relate to consumer needs and wants, markets should be segmented appropriately, target markets should be profiled and evaluated carefully, and market research should be conducted to ensure that meaningful opportunities exist. Throughout this process, the needs and wants should always remain with the customer.
 
To review, see Global Marketing Mix and The Marketing Mix.

3d. Distinguish between the customer value chain and customer value proposition canvas and how marketers can use them successfully to target customers in international markets 

• What are the primary activities in the supply chain?
• What are the four components of "best value supply chains"?
• What are the elements of a value proposition, and why is it difficult to create?
• What are the components of an effective value proposition?
  

The first activity in the supply chain involves inbound logistics, which is the acquisition of raw materials. These are the ingredients, materials, and components that make up a product. This is followed by operations centers, where production takes place. Outbound logistics refers to the ways in which goods are moved from the manufacturer to the customer. Service is how a company interacts with the consumer and provides any needed assistance. Technology also plays a significant role in the supply chain process through the use of computer systems, mobile and other electronic devices, and any other technological processes the company may use.
 
Additionally, companies seek to negotiate for the raw materials they need to purchase through the process of procurement. By obtaining quality goods at the best price, companies can pass along savings to their customers to gain a competitive advantage.
 
Increased competition in the global marketplace has created the need for even greater efforts at meeting consumer needs. "Best value supply chains" seek to focus on the overall value that is provided to the customer and include a variety of factors. Through strategic supply chain management, a company can gain a competitive advantage and improve overall company performance. They can accomplish this through the speed of getting a product to market; the quality of supply chain activities; a reduction in costs throughout the process, and the flexibility of the company in meeting changing consumer needs and wants. By balancing these four metrics, a company can provide their customers with the highest levels of overall value.
 
A value proposition should identify the characteristics of the customer and demonstrate the value those customers will receive. This is the "who?" of the value proposition. The "what?" component defines the offering the customer will receive. "Why?" explains how the offering is valuable to a particular customer.
 
While a value proposition is a simple statement, it is challenging to create because it must distill several important elements into a concise message. This message must be easily understood by all stakeholders to enable the company to better focus on the needs of the customer, the goals of the organization, and the various audiences they serve.
 
The most effective value propositions are short and concise. They should be clear about what the company is offering and the value it provides to the consumer. The message should be meaningful and give the consumer motivation to make a purchase. Finally, a value proposition should seek to differentiate the product from the competition and highlight the product's USP (unique selling proposition).
 
To review, see The Value Chain and The Value Proposition.

3e. Discuss how the customer value chain and customer value proposition canvas change depending on the context of the buyer and country 

• What is customer lifetime value, and how can companies develop lasting relationships with their customers?
• What is the benefit of effective customer relationship management?
• What are the factors that influence the consumer decision-making process?
  

The first step in developing customer relationships and identifying customer lifetime value is the meeting and getting acquainted stage. This involves finding the right customers, understanding customer needs, and building awareness of a product or service. The next step is to provide a satisfying customer experience, which includes measuring customer satisfaction, tracking changes in customer needs and wants, and generating goodwill and loyalty. Finally, companies should seek to sustain committed relationships by generating repeat purchases, anticipating changing needs, and deepening existing relationships.
 
This process is quite complex on a global scale since international markets each have their own unique characteristics. Additionally, changing trends, cultural elements, and political and economic environments may be volatile and require quick actions on the part of the marketer.
 
Companies develop strong relationships with their customers through their marketing efforts. This process of creating loyalty through marketing enables a company to reduce their operating costs and increase profitability. Generally, gaining business from existing companies takes less time, effort, and money than generating sales from new customers or taking business away from the competition.
 
The first factor that influences the consumer decision-making process is situational factors. These relate to how involved a consumer is in making the actual purchase based on the choices available. Personal factors, including demographics and lifestyles, also play a role in how consumers make their purchases. Consumer motivation, attitudes, and beliefs are all psychological elements that play a role in the process. Finally, consumers are highly influenced by a variety of social factors, including culture, social class, reference groups, and family members.
 
As stated earlier, these factors vary widely in the global environment, and marketers need to ensure that these elements are taken into consideration when creating marketing campaigns.
 
To review, see The Role of Customers in Marketing.

Unit 3 Vocabulary

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• 4Cs
  
• 4Ps
• consumer decision-making process
• distribution process
• exchange function
• executive summary
• global change strategy
• global marketing mix strategy
• global message strategy
• global offer strategy
• inbound logistics
• meeting and getting acquainted
• operations centers
• outbound logistics
• pricing strategies
• procurement
• product adaptation
• satisfying customer experience
• service
• straight product extension
• SWOT analysis
• USP (unique selling proposition)
• value proposition

Unit 4: Market Research and Selecting International Markets

4a. Compare and contrast marketing research and marketing intelligence 

• What are the different types of competitive intelligence that are available to marketers?
• What are some of the customary topics for marketing research?
• What are the steps in the marketing research process?
  

Having information about the competition and the overall marketplace can enable a company to better understand the challenges they are facing in each market. Important data about the competition includes product information, which can identify who else is making similar goods and services, what these goods offer to consumers, and how they are presented to the public. It is also essential to have an understanding of competitive market share, the direction in which that market share is headed, and which brands are considered to be the market leaders. Competitors' pricing strategies are also an important factor to evaluate. By understanding their offerings and the discounts or promotions they provide, a company can determine how this might impact their own pricing approach and where they fit relative to other brands in the category. Positioning relates to product image and how brands are perceived relative to the competition. By evaluating another brand's messaging, a company can craft their own messaging in response and help create a position in the mind of the consumer. Finally, it is important to take a look at the sales that a company is gaining from the competition or losing out. Analyzing why consumers select your product, or those from the competition, is helpful in developing meaningful strategies.
 
There are several areas that are the most common subjects for market research. Marketers are generally interested in learning about the environmental factors that exist in a marketplace and how they impact consumer behavior. These might include the economy, market trends, the legal environment, technology, and so on. Customer attitudes and behaviors are a common field of research. It is important to understand the factors that relate to consumer needs and wants, what consumers prefer in their products or services, and how they go about making purchase decisions. Companies also conduct product research about the different products that are available in the marketplace to see where opportunities exist or where their products can better meet consumer needs. Product testing is also valuable in determining new opportunities and how to gain a competitive advantage. Research about marketing effectiveness is commonly conducted, as well. This is done to ensure that campaigns are as effective as possible, that they are reaching their intended target markets, and what activities could improve brand awareness. Finally, companies will conduct corporate research to evaluate their image in the industry, how they can build their reputation, and how they can increase profitability through acquisitions, partnerships, or other means of expansion.
 
The first step in the marketing research process is to identify the problem. This includes articulating the objectives and creating research questions that need to be answered. The next step is to develop the research plan, which encompasses the information that is needed, the methods to be used, and the people responsible for the project. These steps are followed by actually conducting the research, either through primary or secondary sources. Once the data is collected, it is analyzed, interpreted, and reported upon. Finally, based on the results of the research, action is taken to address the questions the research was designed to resolve.
 
To review, see Marketing Information and Research.

4b. Explain the role of global research in international marketing

• How can a company narrow down the choices of which country or countries are most attractive for expansion?
• What are the benefits of the Market Diversification Tool?
• How can market research identify the pros and cons of globalization vs. global marketing standardization?
  

There are many sources of information for helping a company evaluate the global marketplace and identify the locations that are best suited for expansion. Researching US Trade Data is a good place to start. Having the Export Classification Code for the product is essential and can be obtained through the US Census Bureau.
 
Tariff rates around the world are available through these sources, as well as other information about nations where similar products are being sold. There are other government resources, such as export.gov, which can provide other trade information. Additionally, a company should take a close look at the countries that are part of the United States' Free Trade Agreements.
 
Internal research can also be valuable, especially as it relates to website visitors. This can provide a company with information about the locations from which inquiries are coming.
 
Global research can also provide a company with information about the size of different markets, ease of entry, geographic factors, weather conditions, and other related information.
 
The Market Diversification Tool is available through the International Trade Administration, and supplements research that a company may conduct on its own. It can help a company identify new markets that have growth potential and are under consideration for exporting. The research this tool provides includes comparisons of markets where a company may already be exporting; it examines trade data specific to the product and offering; and evaluates the data to determine whether these markets are desirable for doing business.
 
The decision to adopt a globalization strategy vs. a global standardized strategy is complicated, and organizations take a great deal of time and effort to determine the most effective strategies for their companies. Factors to be considered include organizational competencies, product and service offerings, stakeholder expectations, finances and resources, logistics, culture, consumer needs, political and government factors, and many others. By researching each marketplace in-depth, coupled with the goals of the organization, a company can determine the most attractive markets for expansion and the strategies that will best meet organizational goals and the needs of consumers in those geographic areas.
 
To review, see Global Marketing in the US and International Market Research.

4c, Differentiate between secondary and primary research methods, such as mail or online surveys, focus groups, face-to-face interviews, telephone or video conferencing interviews, and observation, for collecting data

• What are the characteristics of a primary source of research?
• What are the characteristics of a secondary source of research?
• What are the benefits that qualitative and quantitative research methods provide?
• What are examples of scholarly sources that can provide reliable secondary data?
  

Primary research is new information that is conducted by a company for the first time. It can specifically address the questions that need to be answered and can provide the company with the most current and up-to-date information available. However, conducting primary research is time-consuming and can be costly.
 
Secondary research is information that is already published. This information is readily available and is often available for free. However, data may be outdated, it may not be from a reliable source, and it may not answer the specific questions that need to be addressed. Scholarly resources include information from government departments, the US Constitution, or other historical documents. Medical journals and scientific studies can generally provide reliable data. Pieces of artwork or literature may be accompanied by scholarly analyses, and textbooks and other documents from historical figures may be considered, as well.
 
Quantitative data is information that can be tabulated and measured. This can include information from surveys, questionnaires, interviews, observations, and other activities where specific answers can be noted and calculated.
 
Qualitative data provides a more descriptive evaluation of the subject being researched. This method can provide emotional responses and help marketers gain a more in-depth understanding of consumer attitudes and beliefs. Some of the methods used for this kind of research include focus groups, interviews, observations, and surveys with open-ended questions.
 
In general, it is a good strategy for companies to begin their research process by looking at the secondary data that is available before conducting primary research. It is possible that relevant and timely information is available, reducing the need for costly and time-consuming primary research.
 
To review, see Finding Your Sources and Primary and Secondary Research.

4d, Determine which market research methods are appropriate for a given market by evaluating what you want to achieve, the data that you will need, the pros and cons of each method, the costs of conducting the research, and the cost of analyzing the results 

• What factors should companies consider when deciding whether to use traditional research methods vs. digital research methods?
• What are the factors associated with researching market size, market segmentation, and market share?
• What kinds of information can a company uncover by conducting research about a host country's culture?
  

The first factor to consider when determining which marketing methods are most appropriate relates to the segment of the population included in the study. If older consumers are the desired respondents, marketers might consider using traditional methods for obtaining data. Traditional methods can be implemented both online and in person. These methods can include surveys and focus groups, interviews, and online research communities.
 
For gathering information from younger demographic groups, data can be collected through online monitoring of websites, social media platforms, online focus groups, and other digital technologies. Data obtained through these methods can include both quantitative and qualitative data. Qualitative data will provide information from smaller groups of respondents, which can be useful for generating ideas and gaining insight. Quantitative data will generally come from larger respondent groups and can help companies confirm ideas and narrow down their choices.
 
Additionally, time and budget should be major considerations when determining which research methods are to be used. For example, as noted earlier, secondary data is easily obtained and can be free or low-cost. This is attractive for companies with limited budgets or those that are short on time. If a company has a larger budget, conducting various forms of primary research can provide the most current and relevant information but may come with a long timeline and a high cost. As noted earlier, conducting secondary research prior to implementing primary research is advised since available information may be relevant and useful.
 
Conducting research about market size, market segmentation, and market share is also important when determining which markets are attractive for entering. Market size measures the overall world in which a company is seeking to make an impact. The information included in these studies looks at the size of certain regions, as well as sales within specific product categories, and also predicts what may happen in the future. As a result, these studies tend to be quite expensive.
 
Market segmentation explores different groups of consumers to identify who might be potential customers. This information can be defined as data that is measurable; it can illustrate consumers who can be reached through marketing activities; whether it is expected that consumers will continue to seek out this product or service, and whether this market is sufficient to provide a sustainable profit.
 
Researching market share will enable a company to gain a greater understanding of how much of the market each of their competitors owns. This information can help a company identify what percentage of the market they might be able to capture if they were to enter. While conducting these last pieces of research is time-consuming and costly, they are essential in enabling a company to make the appropriate decisions before taking the steps to enter a marketplace in which the opportunities are minimal or limited.
 
As noted earlier, culture can be explicit or implicit. Explicit cultures include those that can be seen or perceived, such as fashion, language, food, architecture, and so on. Implicit factors relate to attitudes, values, and beliefs. Researching these elements prior to choosing to enter a market is important to ensure that mistakes aren't made in product development or marketing campaigns. Colors, wording, graphics, and other elements of a marketing message can attract consumers to a product or service or result in a negative response that will inhibit growth and sales.
 
To review, see:

• Introduction to Market Research
• Digital Marketing Research
• Marketing Across Cultures

Unit 4 Vocabulary

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• corporate research
  
• customer attitudes and behaviors
• global research
• internal research
• marketing effectiveness
• marketing research process
• market research
• primary research
• product research
• qualitative data
• quantitative data
• secondary research

Unit 5: Trends in International Marketing

5a. Explain how the role of traditional marketing is changing as companies adopt digital marketing practices

• How can the growth of digital marketing benefit a small business?
• How does digital media differ from traditional media as it relates to target marketing and communication?
• How have advances in technology impacted the field of marketing?

To review, see:

• Traditional Marketing vs. Digital Marketing
• How Has Media Changed and Developed?
• The Effects of Technology

5b. Evaluate the benefits and drawbacks of digital marketing

• How can companies leverage social media marketing for their integrated marketing communications strategies?
• How are digital marketing tools set apart from traditional marketing activities?
• What are some of the disadvantages associated with digital marketing?

To review, see:

• What Digital Marketing Platforms Are The Most Important?
• Introduction to Social Media and Digital Marketing
• Marketing Communications Methods

5c. Determine which traditional or digital marketing methods are appropriate for a given market by evaluating availability, cost, and coverage

• How does the internet benefit both large and small companies that are marketing on a global scale?
• How has m-commerce impacted strategic marketing decisions, especially those for small businesses?
• How does the delivery of customer value relate to marketing strategy?

To review, see:

• Global Marketing and the Internet
• Evaluating Marketing Activity Options
• Putting Together a Marketing Strategy

Unit 5 Vocabulary

• digital marketing
  
• digital media
• m-commerce
• personalization
• personal selling
• QR codes
• traditional media

Unit 6: Strategies for Entering International Markets

6a. Evaluate potential international markets to determine which market to enter 

• What are some of the steps needed to enable a company to properly evaluate markets under consideration for global expansion?
• How can a company determine if their product will create value in an international marketplace?
• What are the implications of timing strategies for entering a foreign market?
  

In deciding which global markets to enter, companies should research other companies that sell similar products, evaluate the overall size of the market for that product, and consider the potential for additional entries. An important aspect of this process is to identify the unique selling proposition of your own product to see if there are sufficient differences for consumers to purchase your product over that of the competition.
 
Marketing and communication strategies should be considered, especially if the native language of a country differs from the home country of the company. It is also important to evaluate the local culture to see how the product might be perceived relative to local values and attitudes. Ensuring that labeling and packaging are consistent with local requirements is important, as are logistics and distribution factors. Overall, an evaluation of regulations, culture, and logistics will be essential when making global expansion decisions.
 
One of the factors a company should consider before entering a foreign market is to determine whether they will be creating value in that marketplace. This first step is to determine if the product is suitable for that market. This can relate to culture, competition, consumer needs, and other factors. As noted earlier, an evaluation of the competition is essential, especially as to how they meet consumer needs for the product category. A company will have a greater chance of success if there is limited competition and if the product will satisfy a need that has not yet been met. As a result, greater value will be created, making it possible for the company to offer their product at a higher price and build sales volume.
 
If an organization decides to be an early entry into a foreign marketplace, which means they are entering the market before any competitors, they can enjoy a first mover advantage and the benefits of pre-empting other brands while also having the chance to build the brand name. They can build sales volume and apply different pricing strategies to determine consumer thresholds. However, this strategy also comes with the high cost of being a pioneer in the marketplace. Many mistakes may be made. As the first entry, the company will need to understand how the country operates, how the brand is received, and what marketing messages are most effective in the marketplace.
 
To review, see Country Evaluation, Selection, and Basic Foreign Market Entry Decisions and Selecting International Markets.

6b. Assess the different strategies for entering a foreign market, such as exporting, licensing, joint venture, or direct foreign investment

• What are the pros and cons of the most common modes of entry into a foreign market?
• What is the difference between direct sales and indirect sales when expanding to international markets?
• What is the difference between a partnership and a joint venture?
  

Exporting provides a company with quick entry into a marketplace with low risk. However, there is little control and low levels of knowledge about local customs and culture, and there is the potential to have a negative impact on the local environment.
 
Licensing and franchises also provide a company with quick entry, accompanied by low risk. However, it is important to understand local laws and regulations and that the licensee has the potential to become a competitor.
 
When a company forms a partnership or strategic alliance, they are able to share costs, reduce the overall investment required, reduce risk, and appear to be a local business, rather than a foreign player. However, this comes with a high cost, and there may be challenges when integrating different business cultures.
 
Acquisition enables a company to have a quick entry through an already established business within the foreign marketplace. However, there are high costs associated with this strategy, and it may be difficult to integrate the home country's operations with that of the host market.
 
Finally, companies can choose to launch a new, wholly-owned subsidiary. This will enable the company to learn about the local market and be viewed as a company that is taking a local perspective. However, many unknowns may exist, costs can be high, and it could take a long time to establish operations.
 
Direct sales when entering an international market means that the home country is responsible for all aspects of the process, including exporting, marketing, and getting the product directly to the ultimate user. Direct sales also take place through the use of a franchisee as well as by obtaining a government contract. Also, as previously discussed, the growth of technology has made it easier for companies to expand their reach, and e-commerce represents another form of direct selling. When customers make a purchase through a company's website or from their social media platforms, this is also a form of direct sales.
 
Indirect sales provide a greater number of options for an organization seeking to have a global presence. Companies can make use of knowledgeable and experienced agents, representatives, or distributors who will seek out buyers and accounts for a company's products and services. There is also the option to work with wholesalers, intermediaries, and other e-commerce platforms where the company can have a presence without making a large investment.
 
A joint venture is a form of partnership, but there are distinct differences. In a partnership, individuals come together for a combined business venture. In a joint venture, the parties come together to form a new entity. Generally, a joint venture is between two different businesses rather than individuals, as in a partnership. Earning a profit is the primary goal of a partnership, while a joint venture might have a variety of objectives, such as expansion, new product development, etc.
 
To review, see:

• Country Evaluation, Selection, and Basic Foreign Market Entry Decisions
• Entry Mode Decision
• International Entry Mode Decisions
• Sales Channels and Matchmaking Support
• Methods and Channels

6c. Determine the external factors, such as market size and market growth, and the internal factors, such as company objectives and company resources, that influence market entry strategy choice

• How do the internal factors of an organization enable the company to decide whether an internalization entry mode is best or if an externalization strategy is appropriate?
• How do the external factors of an organization enable the company to decide whether an internalization entry mode is best or if an externalization strategy is appropriate?
• When a company has limited resources and is unable to determine which foreign markets are best for expansion, what benefits can agents and representatives provide?
  

When evaluating market entry strategies, a company should take a close look at the size of the company, their experience in foreign markets, the complexity of their products, and whether or not they have an advantage over competitors in the marketplace. If a company is small, with limited international experience, it is more likely they will achieve success by adopting an externalization strategy and using an agent, distributor, or other business entity that has local knowledge and experience.
 
External factors a company should consider include sociocultural distance factors (as explored earlier), market demand, market size and growth, trade barriers, competition, and the number of available intermediaries. If these conditions exist at high levels, as with a company's internal factors, using outside agents would still benefit the company.
 
Agents and representatives can enable a company to enter into agreements with customers in foreign countries at a lower cost than if the company did this on their own. It is important to research these entities first to ensure that their goals are in line with the company's goals. Agents and representatives can conduct market research, provide information about transportation and logistics, assist with importing and customs regulations, offer legal advice on local laws and rules, as well as offer insight into local values and cultural factors.
 
To review, see Entry Mode Decision and Enter Your Market.

Unit 6 Vocabulary

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• acquisition
  
• direct sales
• early entry
• exporting
• first mover advantage
• indirect sales
• joint venture
• licensing and franchises
• marketing and communication strategies
• partnership or strategic alliance
• wholly-owned subsidiary

Unit 7: Measuring Marketing Success

7a. Explain the role of marketing success metrics in evaluating the effectiveness of traditional and digital marketing campaigns

• How can measuring marketing metrics benefit an organization?
• How can marketing metrics help a company enhance their marketing performance?
• What is the difference between ROMI and ROMO?
  

Once a marketing strategy is in place, it is essential for that strategy and campaign to be monitored and evaluated to determine what elements were successful and what aspects of the campaign require revisions. By conducting these analyses, an organization can increase their competitive intelligence, evaluate their strengths and weaknesses, and gain a greater understanding of the opportunities and threats that exist. All of this information will enable the organization to make more effective decisions about the elements in their marketing mix.
 
As noted above, marketing metrics can provide an in-depth evaluation of the competition and also enable a company to potentially anticipate competitor responses. A company can also gain a greater understanding of the brand equity they enjoy and how effective they are in reaching their target markets. By analyzing this information and applying it to the marketing mix, companies are better able to respond to changing market conditions.
 
ROMI stands for return on marketing investment. Short-term ROMI measures market share and enables a company to evaluate the effectiveness of their marketing efforts so that resources can be targeted toward those activities with the best results. Long-term ROMI measures brand awareness, and consumer motives and can also help a company determine where to best place their resources.
 
ROMO stands for return on marketing objective. Since marketing activities tend to have a variety of goals and objectives, this measurement can enable an organization to evaluate their returns based on individual objectives, gain a greater awareness of how all resources are spent, and make more effective decisions about future marketing mix activities.
 
To review, see Evaluating Marketing Performance and Marketing Performance Metrics.

7b. Choose appropriate marketing measurement metrics for planning and implementing market entry strategies 

• What are the various KPIs (key performance indicators) a company might use to measure different organizational levels?
• What are some of the KPIs an organization would use to measure marketing-related business objectives?
• What are some of the KPIs an organization would use to measure marketing communications activities?
  

Company-level KPIs look at the overall performance of an organization relative to company-wide goals. These measure revenue, profitability, market share, and growth.

Department-level KPIs look at the performance of individual departments and the goals that are identified for that function. Team-level KPIs look at the effectiveness of teams and how well they are meeting team goals.

Campaign-level KPIs look at the campaigns that have been launched to evaluate which efforts have been the most successful.

Finally, marketing-tactic-level KPIs look at the marketing tools being used and whether they are connecting with target markets at the appropriate and desired levels.
 
For sales and revenue generation, an organization might measure profitability, number of customers, and customer retention. For market share, a company might use measures to evaluate their market share within the product category, as well as how they compare to their nearest competitor. To measure lead generation, the number of qualified leads, the cost per lead, and traffic sources might be evaluated. To see how well the company is building their brand, they might look at metrics for brand awareness, brand equity, share of voice, and brand communities. To determine whether customer support goals are being met, an organization would likely analyze metrics based on resolution rates, resolution time, and satisfaction levels.
 
When evaluating reach, a company would likely measure the number of impressions, followers, fans, subscribers, and level of repeat visits to determine whether marketing goals are being met. To evaluate engagement, metrics for comments, shares, and reposts/retweets would be analyzed. To measure the effectiveness of paid media, a company would look closely at the number of impressions, cost-per-click, click-thru rates, and profits per customer. To determine the effectiveness of SEO, a company would measure the number of unique visitors, conversion rates, and keyword ranking. When conducting email campaigns, companies would want to evaluate the open rate, the click-thru-rate, as well as the number of messages that are bounced. Finally, when conducting public relations campaigns, organizations should measure brand mentions and advertising value equivalencies and count article clips.
 
To review, see Measuring Marketing Communications Effectiveness.

7c. Use marketing measurement metrics to evaluate the success of a marketing campaign and to determine how to modify campaigns over time 

• What are the most important and usual elements of short-term marketing performance that companies track?
• What are the specific metrics a company can use to evaluate campaign success?
• What are the qualities of a desirable voice of customer metrics?
  

A sales analysis can provide a company with an immediate look at how they are doing. Any deviations or variations from expectations can be immediately addressed. A market share analysis can be done by evaluating overall market share, segment share, relative share, and share among specific target markets. If goals are not being met, revisions can be put into place. An expense analysis can provide an organization with insight into the ratio between expenses and sales levels. Again, when these numbers are not aligned properly, adjustments can be made. An overall financial analysis provides a detailed look at the bottom line and evaluates net profit, ROI, and contributions to profit on sales. These numbers can be evaluated against past company figures, as well as with other organizations in the same industry.
 
There are several metrics that media planners use to analyze the results and impact of a campaign. The first metric is reach, which measures the size of the audience being sought. Frequency refers to the average number of times the audience will be exposed to a particular ad or message. Gross Rating Points (GRPs) represent the formula Reach x Frequency. Target Rating Points (TRPs) are the Gross Rating Points multiplied by the ratio of the targeted audience relative to the total audience. Impressions are the overall number of exposures of a message to individuals or households. Cost per Thousand (CPT) is the cost to reach 1,000 people or households. Finally, Cost per Point (CPP) is the cost to reach one percent of an audience.
 
In evaluating the effectiveness of a campaign, getting direct information from customers is extremely valuable. However, it is also important to ensure that the data collected is useful and that the metrics will provide useful information.
 
First, metrics should be credible. Companies should determine if they are widely accepted and if they have a good track record of results. It is important to ensure that they are based on scientific and academic methods. Reliability is important, as well. Companies should ensure that the results can be applied in many ways and that the methods are consistent over time. Metrics should be precise enough to provide insight and should be expansive enough to provide accurate results. Also, the accuracy of the data is related to an entire customer base and should not address a segment that is too small for application to an entire audience. Data only becomes useful when a company can act on the information they receive. The results of data collection should enable a company to identify areas for improvement and help them prioritize their efforts for the greatest levels of success. Finally, meaningful metrics should help a company make predictions about the future behavior of their customers based on current levels of customer satisfaction.
 
To review, see The Advertising Campaign.

Unit 7 Vocabulary 

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• campaign-level-KPIs
  
• company-level KPIs
• Cost per Point (CPP)
• Cost per Thousand (CPT)
• department-level KPIs
• expense analysis
• financial analysis
• Gross Rating Points (GRPs)
• Impressions
• marketing-tactic-level KPIs
• marketing metrics
• market share analysis
• reach
• ROMI
• ROMO
• sales analysis
• Target Rating Points (TRPs)