MttW Exam Notes PDF

**MttW Exam Notes** **Week 1: Course Overview & Introduction to International Marketing** [Rationales for international marketing---why do brands go international? ] *Proactive Internal* - Small size domestic market - Declining domestic market *Proactive External* - Opportunity in forei...

**MttW Exam Notes** **Week 1: Course Overview & Introduction to International Marketing** [Rationales for international marketing---why do brands go international? ] *Proactive Internal* - Small size domestic market - Declining domestic market *Proactive External* - Opportunity in foreign markets - Government assistance *Reactive Internal* - Diversifying risk - Reduce disadvantage of seasonality *Reactive External* - Unsolicited Order [Generic international strategies (global, transnational and multi-domestic) ] *Global* *Transnational* *Multi-domestic* [Risks in international marketing ] - Cultural risks- ethical practices - Commercial Risks- weak partner, timing of entry - Financial Risks- Foreign Tax, economy - Political- Civil unrest, corruption [The wheel of international marketing] **Week 2: Political, Legal & Technological Environment** [Predictors/indicators of political instability] - Frequency of changes in the regime - Religious division [Factors evaluated when assessing political risk] - Political- Democracy, capitalists, gov stability - Product- Is product critical - Diplomatic- Relations with the country - Company- International reputation [Methods for assessing political risk] - The grand tour: send an executive team to make first-hand appraisal. - The old hand: employ an expert on the country to give advice. - Delphi technique: ask a group of experts on the country to share their opinions independently. - Quantitative methods: Use maths for likelihood of certain events. [How brands can manage political risk ] - Establish the firm within the community and invest in community [Motivations for and negative outcomes of government intervention (protectionism) ] - To promote national economic interests - Impact- pricing, supply chains and competition. [Technological considerations that should be evaluated in international markets] - Cybersecurity - Technology infrastructure **Week 3: Economic, Financial & Environmental Environment** [How economies develop (Rostow's model)] [Other metrics useful in measuring a country's economy (including economic structure, GNI/capita, debt, etc.) and implications for marketers ] - GDP - Debt - Unemployment and inflation [Examples of protectionist tactics/behaviours ] Protect their domestic industries from foreigners - Tariffs (additional tax imports) - Higher standards of goods [Three forms of international trade agreements and why marketers should be aware of existing trade agreements ] - Multinational- World Trade Organisation- Help regulation - Regional Trade Groups- Nations group together (European Union) - Bilateral Trade Agreements- Two countries together [Environmental considerations that should be evaluated in international markets ] - Sustainability - Weather - Environment policy **Week 4: Social & Cultural Environment** [Hofestede's cultural dimensions model and implications of each dimension on market behaviour] [Implications of intranational hetero/homogeneity] - Hetero- Many religious/linguistic differences- India - Homo- Very little religious/linguistic differences- 90% people speak Japanese **Week 5: International Market Selection & Research** [How countries develop national competitive advantage (NCA) and why brands should consider a country's NCA(s) when selecting markets to enter] - Particular industries to thrive within particular countries (manufacturing in China) due to skilled labour [How and why to conduct Porter's 5 Forces Analysis ] Shows a competitive/industry analysis  [How and why to conduct PESTLE analysis] - Shows external environment analysis - Political - Environment - Social - Technology - Legal - Economic [How and why to conduct SWOT analysis] - Shows opportunity analysis - Strength - Weakness - Opportunity - Technology Five stage screening process for international market selection - eliminate markets until a small selection of viable markets - Domestic considerations - Macro environmental factors - Competitive environment - Response to marketing activities - Firm's internal trade-offs and objectives **Week 6: International Market Entry & Distribution** [Incremental vs simultaneous entry strategies; approaches and advantages/disadvantages] - Incremental- One foreign country at a time - Simultaneous- Multiple at once [Export-based entry approaches] - Direct Export - Indirect Export- Sells to a third-party in the home country who then exports the product (e.g. BHP exporting steel products via exporters like Brown and Dureau). - Direct Sales Forces- Firm establishes a sales office in the international market - Licensing - Franchising [Manufacturing-based entry approaches] - Joint venture - Consortia- Large number of participants (worldwide architects helping one project) - Acquisition - Greenfield Investment- Establishes all operations in the target country(e.g. Toyota opening a manufacturing plant in Mexico) [How Dunning's eclectic paradigm provides guidance as to whether to pursue export- or manufacturing-based entry and how to apply to make entry decision ] - Framework for understanding international business entry strategies through three key components: - Ownership, Location, and Internalization advantages [Export-based entry channel maps (long vs short) ] - Long- A long export channel includes multiple intermediaries, which can complicate the distribution process but may also enhance market reach. - Lack of local knowledge - Mass market - Short- A short export channel typically involves fewer intermediaries, allowing for more direct control and faster communication. - Direct Exporting - Niche [Determinants of export-based strategies] - Cost - Control - Nature of market - Nature of product **Week 7: International Product & Pricing** [Generic product strategies] - Extension- The company uses the same product as is used in the home market - Adaptation- The company makes larger, more drastic changes to the product to better suit the local mark - Invention- The company designs a new product for a local market from scratch [Forces that drive extension vs adaptation strategy ] - Extension- Economies of scale - Adaptation- Diverse customer preferences [Country-of-origin effects and how to overcome negative country of origin effects] Positive stereotypes are made about particular products- Aus Wine Overcome- Disguise country of origin (Rebel Austria v Thailand) [Changes to packaging and labelling when going international ] Protect the product Promote Is is convenient to move around (handles) **Week 8: International Promotion** [Constraints in international promotion ] - Language - Gov controls - Media availability [Promotional mix (advertising only) ] - Advertising - Public Relations - Sales - Direct marketing - Personal selling [Message strategies (laissez faire, prototype and export; and when each is most suitable/effective) ] - Laissex Faire- high degree of local autonomy in messaging - Prototype- standardized messaging prototype that can be adapted by local teams while maintaining core brand elements - Export- standardized message across all markets with little to no adaptation [Considerations in international media selection ] - What is available in the country? - CHina- WeChat - Aus- FB **Week 9: International Marketing Futures & Ethics** [Emerging trends for international futures] - Shortcomings of globalisation- Pushes us towards slowbalisation, protectionism and regulation. - Economic shocks - Technological advancements [Middle (MOP) and Bottom of the Pyramid (BOP) countries and how these are categorized/identified ] MOP- \$15K-\$150K BOP- \