MID ASSIGNMENT

SUBMITTED TO
BELAL HOSSAIN
DEPARTMENT OF FASHION DESIGN & TECHNOLOGY
 

SUBMITTED BY
NAME: RUBAMA KASHFIA AMIN
INDEX: 192111004
MODULE: INTERNATIONAL MARKETING MANAGEMMENT
MODULE CODE: MKT 6203
DEPARTMENT: FASHION DESIGN & TECHNOLOGY 

Shanto-Mariam University of Creative Technology

Differentiate among International Marketing, Multinational marketing & Global marketing only
through examples of different companies.

International marketing:

International marketing is a type of marketing strategy which is used by a company to sell its goods &
services across different countries and geographies to expand its reach internationally. In international
marketing, a company which manufactures goods, identifies similar customer needs abroad, promotes its
goods & sells them across the globe. Companies usually export locally produced goods but can also set
up international manufacturing units to decrease costs, increase efficiency & drive revenue.

For example,

 In India McDonald’s offers vegetarian burgers as a part of its international marketing localization
strategy.

 PepsiCo & Coca Cola changes its form factor (labelling, size, packaging etc.) in each
international market.

 Online media brands like Facebook provide content & options based on localized requirements
like language, festivities, beliefs etc.

Multinational marketing:

A multinational company (MNC) is defined as a business entity that operates in its country of origin and
also has a branch abroad. The headquarter usually remains in one country, controlling and coordinating
all the international branches.

For example:
Walmart, Saudi Aramco, Apple Inc., Microsoft were listed as some of the top-performing multinational
corporations as per Fortune Global 500 ranking. The list features world’s best multinational companies.
In 2019, together they generated $33.3 in revenues and employed 69.9 million people around the globe.

One of the world’s largest payment system, Visa Inc., came into existence in 1958. Headquartered in San
Francisco, California, the company revolutionized digital payments with enhanced safety and user-
friendly features. Resultantly, it extended business in 200+ countries.

Global marketing:

Global marketing is defined as the process of adjusting the marketing strategies of your company to adapt
to the conditions of other countries. Of course, global marketing is more than selling your product or
service globally. It is the full process of planning, creating, positioning, and promoting your products in a
global market.

For example,

Red Bull, the Austrian drinks company, has done a fantastic job with global marketing. In fact, many
Americans, Britons, Germans, etc., think it is a local brand. One of Red Bull’s most successful strategies
is to host extreme sports events at several venues across the world. The company holds the Red Bull Air
race in the UK and the Red Bull Indianapolis Grand Prix in the USA, a Fast Company article – ‘It’s a
(Red) Bull Market After All ‘– Harvard Business School professor Nancy F. Koehn writes:

“Red Bull really looks like a product from a global economy. It doesn’t look like a traditional American
soft drink – it is not in a 12-ounce can, it’s not sold in a bottle, and it doesn’t have script lettering like
Pepsi or Coke. It looks European. That matters!”

Fast food restaurant KFC (Kentucky Fried Chicken) has several very clever strategies. For example, in
Japan, it has managed to associate its food with Christmas. Consequently, every year Japanese consumers
line up to get the Xmas KFC chicken.
 Question 02:

What are the importance of international marketing?

Importance of international marketing is given below:

 Wider market
 Earn foreign exchange
 Spread business risk
 Raises living standards
 Ensures optimum utilization of resources
 Facilities of cultural exchange
 Promote world peace
 Open door for future opportunities
 Boost brand reputation

Question 03:

What are the 2 criteria’s that are uncontrollable of foreign environment compared to domestic
environment. Please also briefly explain with example what do you understand by them.

Some factors uncontrollable factors, such as economic forces, competitive forces, level of technology,
structure of distribution, geography and infrastructure, political/legal forces and last but not least cultural
forces.
 Question 04:

What are the stages of International marketing involvement?

When company has decided to involve in international marketing, they have to do study and analysis of
market potential in the country they interested to do business so that they can decide the level of
involvement they would like to commit. There are some phases of international marketing involvement;
which are no direct foreign marketing, infrequent foreign marketing, regular foreign market and
international marketing

No foreign marketing:

 In this stage, a firm doesn’t involve itself in international marketing. It focuses to operate in the
domestic market. No serious effort are made by the firm to enter the foreign market, however its
products enter the international market indirectly. The indirect ways are
 The firm sells the products to foreign buyers who actually come for tourism and purchase the
products according to their needs.
 The firm sells its products to export house, or to some domestic manufacturers or to other
agencies who ultimately export those.
 Dwellers in abroad send sometimes in their motherland.

Infrequent of temporary foreign marketing:

In this stage, the firm gets involved in foreign marketing just to dispose its temporary surplus or to utilize
excess capacity. Because it finds similar market as home in terms of domestic, geographic, cultural
similarities. Temporary surplus may be caused by fluctuations of in production levels or demand. As a
result, it infrequently markets its products abroad. Export of aluminum in the last decade was only of
temporary nature because its export was allowed only when its domestic demand was much lower than its
production. Again, for example- Aromatic soaps are exported under this method too. Here, no serious
effort for international marketing is taken.

Regular foreign marketing:

It’s the full process of internationalization. Here the firm is serious to foreign market commitment. It
produces a fixed amount especially for export. The firm makes serious effort to develop the foreign
markets. It appoints foreign or domestic middlemen or sets up its own distribution channel and sales force
in foreign markets to explore the marketing potentials. It frequently visits to the foreign countries. Here,
it’s considered some of the countries as its target market.

International marketing:

In this phase the firm gives full effort in marketing internationally. Firm will now fully concentrated both
in domestic and international market. Here it installs different production unit in different countries and
produces, set prices, advertises according to those segments’ specifications. So, it’s also called
multinational marketing. For example- Uniliver, Nestle do their business according to this phase.

Global marketing:

At this stage, companies treat the world, including their home market, as one market. Market
segmentation decisions are no longer focused on national borders instead; market segments are defined by
income levels, usage patterns or other factors that often span countries and regions. All marketing
strategies regarding pricing, advertising, policies etc. are taken considering the whole population of the
world. For example- Coca cola with red can.

In the first two stages of involvement, the firm relies more on other for marketing its products in foreign
markets while in the later stages, it may engage its own personnel in selling the products. The marketing
task in the earlier stages is simple, i.e. only selling, while in the later stages, serious research is necessary
and serious attempts are made to locate and satisfy the needs of the customers. However before entering
into the international market the firm should undertake a thorough analysis of the markets and its
resources to get a success.

Question 05:
Please refer real life example of “Think global, act local”

Real life example of “Think global, act local” are as follows:

 KFC: To increase visits from local residents, KFC has initiated a five-year plan to upgrade its UK
restaurants with new contemporary designs. Designs will be based on ‘look and feel’ of the area and
in collaboration with local property developers. KFC has a vegetarian thali (a mixed meal with rice
and cooked vegetables) and Chana Snacker (burger with chickpeas) to cater to vegetarians in India.
 Whirlpool Corporation: Domestic appliance maker, Whirlpool incorporated specially designed
agitators into its washing machines when it sold them in India. This helped Indian women wash saris
without the five-foot long sari getting tangled. Whirlpool formed a joined venture with a local partner
to produce the redesigned washing machine to suit local taste and culture. Whirlpool also makes its
refrigerators in bright colors like red and blue as many Asian consumers placed their refrigerator in
living rooms as a sign of status. Whirlpool believes in standardizing worldwide what it can and
adapting what it cannot.
As part of Whirlpool’s global strategy, the company wanted to develop products based on consumers
tastes and needs. Whirlpool had done extensive research and found that European customers wanted a
microwave oven that could brown and crisp food. Whirlpool then designed and introduced the VIP
Crisp wave which could fry crispy bacon and cook a pizza with a crisp crust. The product was
successful in Europe and later launched in U.S. as well.
 Unilever: Unilever took glocalization (local adaptation) to a new level in the 1990s. Instead of
adapting products unnecessarily, it adapted products to the local market marginally i.e. the basic
product would be fine-tuned instead of expensive total adaptation. E.g. Unilever identified the need
for a regional ice cream and was very successful with its Wall’s ice cream adapting it specifically to
the Asian taste (different from the rest of the world). In 2000, it had a market share of 41% to Nestle’s
15%.
Another Unilever ice cream brand Asian Delight was very successful in Asia. Unilever’s Bangkok
innovation center redesigned the product and adapted it to local taste (coconut ice cream mixed with
fruits and vegetables used traditionally in sweets in the region) and packaging (Thai and English on
packaging in Thailand).
 Viacom’s MTV localized strategy with localized programming: MTV has catered to local taste in
East Asia in South Korea, China, India and Japan. E.g. MTV broadcasts on two channels with
Chinese music in China and Hindi pop in India. Using joint ventures with local partners, channels are
branded accordingly as MTV India, MTV Korea, MTV China and MTV Japan and use more local
employees with use of local language.