NEW COLLEGE

SUMMER/FALL 2000

 


INTERNATIONAL MARKETING
P-MKTG 4341


St. Edward's University

Working programs for working adults leading towards a University degree.



SPECIAL NOTE: PACE/BBA students are required/responsible for completing their assignments in preparation for the first class meeting for each of the 5-week courses, Research Seminar, and Strategic Management.

I. COURSE DESCRIPTION

A study of the marketing structure, organization, policies and procedures in international marketing. The impact of foreign competition in the domestic market will be considered together with the problems in penetrating foreign markets. The effect of U.S. and foreign anti-trust, taxation and regional marketing agreements and arrangements will be explored.

 PREREQUISITE: Principles of Marketing (MKTG -2301)

II. GENERAL LEARNING OUTCOMES

At the conclusion of this course, the student will:

·        be familiar with the scope and challenge of international marketing and the global business environment.

·        understand the cultural environment of global markets including political, legal and historical components.

·        be able to asses global market opportunities including the emerging markets and market behavior.

·        understand how the four P’s of marketing must be integrated in the development of global marketing strategies.

·        be familiar with the financial requirements for global marketing

·        understand how to use cultural, economic, market audit and competitive market analysis to develop a preliminary marketing plan.

·        understand the importance of the self-reference criterion (SRC) in international marketing.

·        be familiar with the provisions of the Omnibus Trade and Competitiveness ACT.

·        know the seven types of trade barriers.

·        be familiar with the importance of GATT and the IMF.

·        understand the keiretsu system.

·        be familiar with the effects of topography and climate on products, population centers, transportation and economic growth.

·        be familiar with the growing problem and importance of environmental damage to world trade.

·        understand the effects of disparate business ethics on international markets.

·        be familiar with the important factors in jurisdiction of international legal disputes along with the problems of protecting intellectual property rights.

·        understand global market segmentation and its effect on international marketing.

·        be familiar with the effect of the European Community (EC) and the European Economic Association (EEA) on international marketing.

·        be familiar with the North American Free Trade Agreement (NAFTA) and its effect on other major trade areas.

·        be familiar with the development of trade within the Asian Pacific Rim.

·        understand the increasing importance of strategic international alliances.

·        be familiar with cross-cultural sampling and its problems in lesser-developed countries.

·        be familiar with the physical, mandatory and cultural requirements for product adaptation and evaluation.

·        be familiar with how distribution patterns affect the various aspects of international marketing.

·        understand the added steps necessary to move goods across country borders.

·        be familiar with when global advertising is most effective and when modified advertising is necessary.

·        understand the problems unique to selecting and managing foreign sales staffs.

·        be familiar with all of the components of pricing that are competitive tools in international marketing.

·        be familiar with the available sources of funding and support designed to aid the export of American goods.

 III. COURSE MATERIALS

Cateora, Philip R. International Marketing. 10th edition. Chicago: Irwin, 1999.

Readings from current international marketing publication. See list of suggested business journals below under "current business article" weekly assignment.

Computer use. You are urged to use the internet to locate and retrieve data and other information for your term project and other assignments. It is expected that you use a word processing package (preferably WordPerfect) on your term project. You should use a spreadsheet package (such as Quattro Pro, Excel or Lotus) to do your charts and graphs.

IV. LEARNING ACTIVITIES AND COURSE REQUIREMENTS

          The student will:

          a. Read assigned chapters in the text and be prepared to discuss the salient issues                            in-depth.

          b. Complete two take home exams.

          c. Bring two articles and briefly discuss.

          d. Present solutions to two assigned case histories.

          e. Prepare a four part term project.

 V. EVALUATION

Grades for the course will be calculated as follows:

Two written take home exams   

 

200 points

Two current articles in International Marketing ("Readings")   (Articles will be presented to the class and a one page summary handed to the instructor at the end of the presentation.)  NOTE:  Your article and case presentations will not be due on the same night. 

 

50 points

Case Presentation(s) -Two written cases presented to the class    (Cases will be presented to the class and a one or two page summary handed to the instructor at the end of the presentation.)

 

 

50 points

Term Project - Outline format - 4 parts, 50 points each

 

200 points

TOTAL      

 

500 points

VI. ACADEMIC INTEGRITY

Students are expected maintain high standards of academic integrity in all work for this course and are expected to demonstrate their own mastery of the subject material on tests, projects and case work. Students are expected to develop good working relationships with other members of the class. Dishonesty in any work may result in the grade of F for the course. Plagiarism is a form of academic dishonesty that may result in the same penalty. Once a grade of F has been assigned on the basis of academic dishonesty, the student may not withdraw from the course.

 VII. SPECIAL CIRCUMSTANCES

 Should you have a learning, sensory or psychiatric disability please let me know so your learning needs can be appropriately met. You also need to present documentation concerning your disability to the Academic and Career Services Office in Holy Cross Hall, Room G13. Tutoring and other study services can be arranged through the same offices. Call 448-8660 if you have any questions.

 OFFICE HOURS

The instructor does not keep scheduled office hours. However, the instructor will be available both before and after each class session. Also, face-to-face meetings on non-class days can be scheduled by the student as required. Email and phone messages can be used for routine problems and questions.

 ATTENDANCE

The course consists of five scheduled class meetings. Students are expected to attend all class sessions and to actively participate in all class discussions. In the event a class is missed, the student is required to contact the instructor prior to class to discuss how the missed material can be made up.

 VIII. CLASS SCHEDULE AND ASSIGNMENTS

 Session #1 Agenda, including assignments to be completed prior to session #1

"An Overview of International Marketing"                                                    

Review Syllabus                                                                                 

Instructor’s opening comments                                                            

Articles on current international marketing topics will assigned and presented over the next four class periods. (Each student will be required to complete 2 articles)  NOTE:  Articles and cases will be not be presented on the same night by the same student.  You will present an article one week, then a case the next.  Some students will present cases and some students will present articles, but not both.  This is designed to spread the workload to be more manageable.

Read Text Chapters 1,2 and 3; be prepared for discussion                               

Instructor will assign cases for the next four classes]  (Each student will complete two case presentations.)

Select a Country and Product in advance for Term Project (see below under"Term Project")                                      

The first take home exam will be given to students (chapters 1-10 are covered) and due on the third class meeting.        

Session #2 Agenda, including assignments to be completed prior to session #2   

"Cultural Environment of Global Marketing"                                                

Instructor’s News and Comments                                                                  

Assigned international marketing articles will be presented                               

Read Text Chapters 4,5,6 and 7; be prepared for discussion                            

Assigned Text Cases Presented to Class

Paper #1 Due "Culture Paper" (see below under "Term Project")                    

Session #3 Agenda, including assignments to be completed prior to session #3

"Assessing Global Marketing Opportunities"

Exam #1 due. Covers chapters 1-10                                           

Instructor’s News and Comments                                                                  

Assigned international marketing articles will be presented                                                            

Read Text Chapters 8, 9, 10, 11 and 12; be prepared for discussion                           

Assigned Text Cases Presented to Class                                                         

Paper #2 Due "Economic Paper" (see below under "Term Project")                 

The second take home exam will be given to students and due on the fifth class meeting.  It covers chapters 11-19.       

Session # 4 Agenda, including assignments to be completed prior to session #4

"Developing Global Marketing Strategies"                                                    

Instructor’s News and Comments                                                                  

Assigned international marketing articles will be presented                                                            

Read Text Chapters 12, 13, 14 and 15; be prepared for discussion                   

Assigned Text Cases Presented to Class         

Paper #3 Due "Marketing Audit"; may be combined with Paper #4

(see below under "Term Project")                                                        

Session #5 Agenda, including assignments to be completed prior to session #5

"Implementing Global Marketing Strategies"                                                 

Instructor’s News and Comments                                                                  

Assigned international marketing articles will be presented                                                            

Read Text Chapters 16, 17, 18 and 19; be prepared for discussion                   

Assigned Text Cases Presented to Class

Paper #4 Due "Marketing Plan"; may be combined with Paper #3

(see below under "Term Project")

Exam Two due.  It covers chapters 11-19                                            

Wrap-up and Farewells

READINGS PROJECT - CURRENT BUSINESS ARTICLES

You will be asked to find an article in a current periodical (no more than one year old) on a topic with international application, preferably with a relationship to the week’s specific topics. The assignment is to read the article and then summarize it in the equivalent of one-half page, double-spaced typewritten. Include the title of the article, name of the periodical, date and page number. Each assignment is due at the beginning of class and you will be asked to give a brief report on the article.  You will be required to present two articles during this course.

 Sources of the articles may be any current periodical but not a book. Newspapers and popular magazines are allowed, however, business periodicals are generally preferred. Suggested sources include:

Advertising Age

Business ameriica

Business Asia                           

Business China                         

Business Eastern Europe           

Business Europe                       

Business Horizons           

Business International

Business Latin America

Business Week

Europe

Financial Times

Forbes

 

Fortune

Harvard Business Review

International Management

Journal of International Business

Journal of International Marketing

The Wall Street Journal

Trade and Culture

International Business and others

You are also urged to consult the Index to Business Periodicals as another source of articles. Articles with international subjects appear in almost everything published. 

Presentations will be evaluated on relevance, originality, significance and the student’s ability to handle queries from the class and the instructor during the oral report. After your presentation, you should hand the instructor a copy of the article plus a brief summary of your critique (1/2 page).

TERM PROJECT

REFER TO PAGE 610 FOR MORE DETAILS

"The Country Notebook - A Guide for Developing an International Marketing Plan"

Note: this is a description of a project that uses "The Country Notebook--A Guide for Developing a Marketing Plan," which is in Part VI, Page 610 in the Cateora Text, INTERNATIONAL MARKETING, Richard D. Irwin, 9th Edition, 1999

 Project Objectives

There are four learning objectives for the international marketing term project. The first objective is to become familiar with the cultural environment of a country while gaining cross-cultural understanding. The second objective is to provide the opportunity to prepare a marketing plan for a product which is being considered for marketing in a country they have selected. The project emphasizes the need to understand the environment as an essential step preceding the preparation of a marketing plan. The final two objectives of the term project are to effectively reinforce key concepts covered in this and other courses and to stimulate students to expand their learning horizons through the identification of materials required to complete the project

 Project Overview

The project requires that the student select a country and write a series of three or four brief, rough-outline papers, 2-3 pages each. The first paper is a general survey of the country’s culture. The second covers the economy of the country including a thorough analysis of the distribution and marketing systems. The third paper is a market audit and competitive analysis of a country’s market for a specific product. The fourth calls for developing a preliminary marketing plan for a product under consideration for marketing in the country they have selected. "Brief, rough-outline" simply requires a listing of the salient facts without regard to the usual final paper polish. This is to acknowledge the competition for your time from the other assignments in this course as well as additional SEU courses (and your busy lives in general).

Country and Product Selection

Selecting a Country

To achieve maximum interest and involvement it is suggested that the students select a country in which they have some specific interest. In those instances where there are students whose homes are other than the United States, it is recommended that they study a country other than their own (and also other than the United States).

Selecting a Product

While industrial products currently account for more than 50 percent of international trade, the focus of this project is exclusively on consumer products. Two factors argue in favor of using consumer rather than industrial products. First, to maintain the cultural orientation of the project, consumer products offer more opportunities to focus on cultural adaptation than do most industrial goods. Second, since students generally know little about industrial products, too much effort is expended on gaining product knowledge instead of developing a marketing program where the emphasis should be.

Two factors should be considered when selecting a product. First, the product should have obvious cultural overtones to provide a strong cultural impact to the project. Second, the product should be one that the students know something about. Products meeting these criteria and which have been used successfully in the past include: baby food, disposable diapers, powdered milk, contraceptive pills, high-protein diet supplements, prepared foods such as dry soups, portable washing machines, soft drink mix, children’s toys, instant noodles, franchise outlets and early pregnancy tests.

 If you prefer not to select your own product, you are welcome to use this example:

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Product Fact Sheet

 Product:      e.p.t. In-Home Pregnancy Test

 Unit:           One (1) test

 Cost: $4.00 each -- in gross lots (includes c.i.f., taxes and packaging)

Description:  At last, an accurate early pregnancy test that women can do at home quickly, safely and very easily. The e.p.t. In-Home Early Pregnancy Test is a private little revolution any woman can easily purchase at her drugstore. It is highly accurate when used to detect pregnancy, as verified by a high accuracy rate in clinical tests by doctors of hundreds of women.

You can do this easy pregnancy test yourself in the privacy of your home without waiting for appointments or delays. At last, early knowledge of pregnancy is easily available to all, right at home. It’s simple, fast, and there is no risk; no physical danger whatever in doing it. A sample of your morning urine is all that is needed to use e.p.t.

How e.p.t. works: As soon as you become pregnant, your body starts to produce a special hormone -- HCG. Starting on the 9th day after the date you expected your menstrual period to begin, there should be sufficient concentration of FCG in your urine to give an accurate reading of pregnancy.

The e.p.t. In-Home Pregnancy Test simply verifies whether or not this pregnancy hormone is present in your urine in sufficient quantity to detect pregnancy. That’s all there is to it.

Before the 9th day after the day you expect your period to begin, there may not be enough of the pregnancy hormone in your urine. It is important that you wait until at least the 9th day before doing the test to obtain accurate test results. Consult your pharmacist for further information on e.p.t.

 Test contains:

          1. Glass test tube with rubber stopper containing reagent chemicals

          2. Clear plastic support with mirror to enable you to see the results without touching the box.

          3. Plastic vial containing special purified water.

          4. Lid (can be used to hold urine needed for the test.)

          5. Dropper with squeeze bulb.

Usage:

1.     Collect a sample of your first morning urine. First, place 3 drops into the test tube which already contains the test chemicals; and, then, add the contents of the plastic vial which contains purified water.

2.     Press rubber stopper into test tube and shake vigorously for ten seconds.

3.     Place test tube back in its original position in the holder and leave in completely undisturbed for 2 hours.

4.     After 2 hours, if a dark brown donut-shaped ring is visible in the mirror under the test tube, it indicates that your urine contains the pregnancy hormone, and you can assume you are pregnant and should consult your doctor.

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Project Components

The international marketing term project is designed to provide the students with experience in analyzing a country’s cultural and economic environment as well as experience in developing a marketing program for a specific product. The assignment consists of four parts: Part I is a cultural analysis of a country; Part II is an economic analysis of a country; Part III is a market audit and competitive analysis of a product in a country; and, Part IV is a complete marketing plan for the product in the selected country.

Guideline for Cultural Analysis -- Part I

Before a marketing manager can determine if it is necessary to adjust to the environment or to determine what adjustments would be appropriate, it is necessary to understand the environment. This is particularly true of the culture of a country.

While student frequently encounter difficulties in obtaining cultural information, the problems almost always can be overcome in a satisfactory manner. The information suggested in the outline provided in Appendix I of the text deals with some of the key aspects of the culture and is relevant to the latter part of the project involving the development of the marketing plan. Through the culture paper, you are encouraged to report the facts which you have identified and to analyze the facts in terms of likely marketing implications of such information.

While completion of this part of the project does not constitute a complete job of acculturation, it does reinforce the necessity of understanding the culture of the country in which they will be marketing products and the difficulty associated with attaining this understanding.

Guideline for Economic Analysis -- Part II

The information asked for in the outline of the economics paper in the text highlights the kind of information which is useful in understanding the economy of a country, particularly as it is related to marketing considerations. Of the different sections of the economics, those dealing with media and channels of distribution typically provide the most challenge in terms of finding the needed information. However, the information contained in these sections is also the most directly relevant to developing the marketing plan.

It should be noted that entire books could and have been written on the topics contained in the outline. The objective of covering these topics in this paper is not to have the students present a written report of all the information they have found on the subject, but, to have the student demonstrate an understanding of the material and highlight those points of particular significance from a marketing planning perspective.

Both the culture and economics papers have a limit of three (3) pages. Since most students find enough information to write substantially more than 3 pages, even in brief rough-outline form, it forces the student to organize, analyze and then present only the most important material.

Note: Parts III and IV may be combined into one paper. If so, the maximum length should be 6 pages.

Guideline for a Market Audit and Competitive Analysis - Part III

Of the guidelines presented, this is the most product or brand specific. Information in the other guidelines is general in nature focusing on product categories, whereas the data in this one are brand specific, and are used to determine competitive market conditions and market potential.

Two different components of the planning process are reflected in this guideline. Information in Parts II and II serves as the basis for an evaluation of the product/brand in a specific market country. Information in this guideline provides an estimate of market potential and an evaluation of the strengths and weaknesses of competitive marketing efforts. The data generated in this step are used to determine the extent of adaptation of the company’s marketing mix necessary for successful market entry and to develop the final step, the action plan. The detailed information needed to complete this guideline will not necessarily be available without conducting a thorough marketing research investigation. Thus, another purpose of this part of the country notebook is to identify the correct questions to ask in a formal market study.

Guideline for a Preliminary Marketing Plan -- Part IV

After completing the culture, economic and market audit papers, the emphasis of the project shifts to the second learning objective, that of preparing a marketing feasibility study or marketing plan for a specific product. Specific requirements for this part of the paper are found in the Appendix of the text.

In any study of the domestic market, it is essential that thorough understanding of the situation confronting the firm be developed. The situation analysis is usually defined as consisting of the following topics: general information about the industry, competition and governmental control along with information about the firm and the market.

Marketing managers and researchers involved in the collection of information for situation analyses are well aware of the problems associated with identifying needed information. The availability of needed information is a substantial problem in the domestic market, and the problems intensify when trying to identify needed information for a foreign market.

Since the sources of information available are primarily secondary, it typically is necessary to modify the requirements of the situation analysis for students trying to identify such information about a foreign market.

Two strategies are used to make this objective attainable. The first is to select a product which is basically a new product. In this way, that part of the situation analysis which deals with the industry and competition is simplified. if a new or relatively new product is selected, then the students are asked to do an analysis of its innovativeness. This includes an analysis of the product in terms of the five characteristics which influence the rate of diffusion. This represents a trade-off with one type of analysis being substituted for another. However, given the information problems associated with quickly identifying the needed information for the typical situation analysis, this is a reasonable departure.

The second strategy focuses on those pieces of information in the typical situation analysis which are still required. In developing a marketing plan for a product in an international market, it is necessary to have the necessary information or make an assumption about what the information would be in order to complete the situation analysis in a timely manner. Thus, some of the critical elements of the situation analysis are still included.

The remaining information that is a part of the situation analysis is information about the firm. Since this is not one of the central concerns in the development of the project, information about the firm is handled in two ways. First, the context of the project is that the parent company is organized in terms of profit centers. This is discussed in terms of the international department as a profit center and the foreign venture, whatever its ownership characteristics, as a profit center. Thus, the students are assigned the task of determining whether the product they have selected can be marketed profitable in that particular foreign market. Second, the students must specify an organizational form consistent with the countries’ laws, but further background information about the firm is kept to minimum so that the students can focus their attention on the marketing opportunity and problems associated with marketing the product in the country they have selected.

The structure of the project is such that the students are asked to prepare an analysis of the feasibility of marketing a product in the country they have selected. It should not be interpreted to mean that the approach taken in this project is product oriented. As noted above, the selection of the product involves a number of issues which are critical to the success of the project. Further, it is not uncommon for a United States firm to face the situation in which it has an established product and wishes to determine if there is a profitable opportunity to market the product in a foreign country.

Other Term Project Issues

Grading

This paper is not easy to grade. The first two papers will be read by the instructor with comments in the margins, but a grade will not be assigned. The students are thereby given the opportunity in the final paper to fill in the holes and correct any shortcomings. The project grade will be assigned after the last paper is read. One-half of the grade will be determined by the first two papers in terms of their adequacy and coverage. The remaining half of the grade is determined by the final two papers, with an emphasis on the marketing plan. Several points are considered in the final grade. Of major importance is how well information gathered in the cultural and economics papers is applied in developing a marketing program. In addition the application of marketing concepts presented in lectures, cases and text assignments as well as concepts learned in other marketing and business courses is considers.

Setting Product Price

In all situations, the price should include all import taxes, transportation, etc., at two ports of entry to be designated by the student. This procedure is followed because the time necessary to determine import taxes, transportation costs, etc., would be greater than the benefit derived from the exercise. Therefore, Deal only with those pricing factors that occur after the product is imported.

What about import restrictions?

If you find that there are restrictions on importation of the product you select into the country you have chosen, simply ignore the restrictions and proceed as if those restrictions do not exist.

Information Availability

There is a wealth of information available on almost any product/country combination you select. There is, however, some variation among countries as to the availability and quality of data. These variations will be considered when grading the project. Experience has shown that the breadth and scope of the research you compile for this project will generally range beyond that necessary for typical business reports. This is the most time-intensive portion of the project, but afterwards many students have commented favorably about the extent to which the experience has broadened their familiarity with information resources and extended their learning horizons.

Selected Information Sources

1.     Statistical Data

a.     United Nations Statistical Yearbook
Furnished annually by the United Nations, NY, NY; about 709 pages
provides historical statistics on virtually every aspect of world business

          b. UNESCO Social Statistical Compendium publisher: Publishing Service, United Nations            
             NY, NY 10017

          c. Organization for Economic Cooperation and Development (OECD)
                   publishes a series of economic reports on its member nations
                   write: OECD Publications and Information Center, Suite 700, 2001 L              
              Street NW, Washington, DC 20036 (202) 785-6323

          d. European Marketing Data and Statistics, London: Euromonitor Publications

          e. Consumer Europe. London: Euromonitor Publications

          f. Statistical Yearbook for Latin America. NY: United Nations

          g. Statistical Abstract of Latin America, Los Angeles: UCLA

          h. The markets of Asia/ Pacific: Thailand Taiwan, People’s Republic of China, Hong Kong,                  South Korea, The Philippines, Indonesia, Singapore and Malaysia. London: The Asia Pacific Center, LTD, printed by NY: Facts on File

          i. Worldwide Economic Indicators, N.Y.: Business International

          j. Retail International. London: Euromonitor

          k. International Marketing Data and Statistics, London: Euromonitor Publications

          l. Retail trade International, London: Euromonitor Publications Limited

          m. International Marketing Data and Statistics, London: Euromonitor                                    Publications Limited

          n. The Statesman’s Year-Book, St. Martin’s Press

          o. World Factbook, published by the Central Intelligence Agency

          p. World Development Report, published by the World Bank

          q. World Tables, available from World Bank Publications

 2. Bibliographies and Indexes

          a. The Economist Intelligence Unit

          b. Sociological Abstracts

          c. National Geographic Index

          d. National Geographic Abstracts

          e. Public Affairs Index Service Bulletin

          f. Business Periodicals Index

          g. Information Please Almanac

          h. Global Guide to International Business

          i. Encyclopedia of Geographic Information Sources

          j. International Business Reference Sources

          k. The Henry Hold International Desk Reference: A Guide to Essential                                 Information Resources of the World’s Major Trading Nations

          l. JETRO (Japan External Trade Organization)

 3. Information by Country

          a. The Japan Trade Center, 725 Figueroa St, Suite 1890, Los Angeles, CA 90071
             (213) 624-8855

          b. The World Almanac and Book of Facts, published annually by The New York                               World Telegram

          c. Worldmark Encyclopedia of Nations, Worldmark Press, Inc., Harper Brothers

          d. Europa Yearbook, Eruopa Publications Limited, London

e. Country Profiles, published by Superintendent of Documents, U.S. Government                                   Printing Office, Washington, D.C. 20402

          f. NTDB (National Trade Data Bank), 202-482-1986

 4. Cultural Information by Country

          a. Intercultural Press, Inc. (207) 846-5181 e-mail, intercultural@mcimail.com

          b. Culturegrams - 4-page briefings

 5. Advertising Rates

          a. International Media Guide, available from Directories International, Inc. 22                       Elizabeth Street, South Norwalk, CN 06854 (203)853-7880

6. Flash Facts

Flash Facts is an automated information system provided by the Commerce Department for information concerning trade with several regions of the worlds. Included is information on doing business within each region or country, including such topics as tariffs, rules of origin, distribution, export techniques and marketing issues. This free service is available 24 hours a day,, seven days a weeks and send information directly to your fax machine within a few hours. Information for different regions of the world can be reached from the following:

          a. Amerifacts 202-482-4464 (Western Hemisphere)

          b. Eastern Europe 202-482-5745

          c. Pacific Basin 202-482-3875 or 482-3646

          d. Newly Independent States 202-482-3145

          e. Africa, Near East and Southeast Asia 202-482-1064

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