1. Should a firm maintain one brand worldwide? In what ways might a product be adapted for global markets? (10 Marks)

 

Define branding (1 mark)

Yes, maintain one brand with following implications:

• Global product + example
• Universal acceptance, not culturally sensitive

No, don’t manintain one brand with following implications

• Multinational product + example
• Adapted to localmarket, culturally sensitive

Identify adaptation for global markets:

• Composition/ ingredients + example
• Packaging or labeling + example
• Branding + example
• Pricing + example
• Distribution + example
• Promotions + example

 

2. In the competitive global environment, firms have resorted to forging strategic alliance for new product development. Discuss the merits and challenges of this approach. (10 Marks)

 

Define strategic alliances

Define product development

1. Combine 2 specialised areas to develop a product – ANZ and Etrade an American online broker, alliances allows
   1. ANZ customers to buy and sell shares
2. Entry into a market that one partnwe already has access to – Nissan’s agreement to sell VW in Japan
3. Share marketing costs
4. Spread risks

• Challenges
• Lose brand distinction
• Have different corporate and service cultures
• Loss of jobs from task duplications

 

3. What strategic factors should an international firm consider when selecting an entry mode? Discuss how timing can play a role in making effective market entry. (10 Marks)

 

Define entry mode

Strategic factors include:

• How stable is the government in the overseas market?
• What is the overseas market’s approach to foreign investment i.e., tariffs, corporate tax, etc.
• Is this the first overseas market for the firm?
• Does the firm have reliable distributors?
• What funding is available to the firm?

Timing:

• The firm’s product life cycle domestically + example
• Take advantage of tax breaks when setting up its own subsidiary overseas + example – Dubai’s Internet City
• Take advantage of rate of exchange + example

 

4. How do the characteristics of the final consumer affect a decision as to the most appropriate distribution option in international marketing? Comment on whether international clothing brands have been successful in their distribution overseas. (10 Marks)

 

Define final consumer

Final consumer:

• B2C + example
• B2B + example
• C2C + example

Implications – cost, commitment and control

Define distribution strategies

Distribution strategies

• Export through Australian agent + example of success
• Export through Australian distributor + example of success
• Establish strategic alliance + example of success
• Licensing + example of success
• Franchising + example of success
• Establish equity-based joint venture + example of success
• Establish marketing subsidiary overseas + example of success

 

5. What is the difference between exporting and foreign direct investment? With examples, identify the reasons why car manufacturers may adopt each entry modes. (10 Marks)

 

Exporting

Define exporting + example

• Cost + implications
• Control + implications
• Commitment + implications
• Nature of product + implications
• Nature of Market + implications

Foreign direct investment

Define foreign direct investment

• Cost + implications
• Control + implications
• Commitment + implications
• Nature of product + implications
• Nature of Market + implications

 

6. Illustrate with examples the link between national brands and competitive advantage. Explain the potential impact of counterfeit products on national image and international product strategies. (10 Marks)

 

Define national brands

Define competitive advantage

Aims of competitive advantage of national brands include:

• Brand recognition
• Brand awareness
• Brand recall
• Country of origin effect

Counterfeit products evolve when the original is in the mature stage of the PLC

The impacts of counterfeit products are:

• Degraded and negative image of original
• Concern about product quality
• Unwillingness to pay good money for the brand
• Reconsider distribution intermediaries
• Invoke copy write laws and litigation

 

7. Discuss how Language and Symbols in communication have cause failures of products in the overseas market. What would you have recommend to avoid such failures.

 

8. Cultures around the world are becoming increasingly similar. Companies therefore should standardize both products and global marketing efforts. Comment on this statement. Are there certain industries for which it might be more or less true?

 

 

9. When conducting a feasibility study for entry into an overseas market, an international forms must consider the potential barriers or obstacles. Which are most important and which are less important? Justify your argument.
10. Assume you have a quirky product and inventive product that you have to market to China and India. Identify what factors decide whether the same product modifications are necessary.

 

11. How should firms select an international agent or distributor? What criteria is essential in ensuring that the relationship with the agent or distributor might be long-term.

 

 

12. Illustrate the influence of cultural differences on potential difficulties at the beginning of sales talks. How may an international firm support its sales force in adequate problems to avoid such problems?