Assignment Code: IBO-02/TMA/2023-2024

Course Code: IBO-02

Assignment Name: International Marketing Management

Year: 2023-2024

Verification Status: Verified by Professor

Q1) What do you understand by the strategic concept of marketing? How it is different from marketing concept? Explain the basic principles of strategic marketing.

Ans) The strategic concept of marketing represents an evolution of the traditional marketing concept, incorporating a more holistic and long-term approach to achieving marketing goals. It's different from the traditional marketing concept in that it takes a broader view of marketing's role in an organization and emphasizes adapting to changing market conditions. Here's an explanation of the two concepts and the basic principles of strategic marketing:

Marketing Concept:

1. Customer-Centric: The marketing concept revolves around meeting customer needs and wants. It's focused on understanding and satisfying customer demands profitably.

2. Short-Term Focus: It often involves immediate customer satisfaction and short-term sales. The primary goal is to make a sale.

3. Product-Centric: The emphasis is on creating a product or service and then finding ways to sell it to customers.

Strategic Marketing:

1. Holistic Approach: Strategic marketing goes beyond satisfying immediate customer needs. It considers the broader business environment and long-term goals.

2. Long-Term Focus: It emphasizes creating sustainable competitive advantages and building lasting customer relationships. Long-term profitability is the goal.

3. Customer Relationship-Centric: Strategic marketing looks at customer lifetime value and aims to build strong, lasting relationships with customers.

Basic Principles of Strategic Marketing:

1. Market Segmentation: Identify and target specific market segments with distinct needs and preferences. Develop tailored marketing strategies for each segment.

2. Competitive Advantage: Seek sustainable competitive advantages, such as unique product features, brand reputation, or cost leadership.

3. Customer-Centricity: Place the customer at the centre of all marketing efforts. Understand their needs, behaviour’s, and preferences deeply.

4. Integrated Marketing: Coordinate marketing efforts across various channels, including digital, traditional advertising, social media, and content marketing.

5. Environmental Scanning: Continuously monitor the external environment for trends, opportunities, and threats. Be agile and adapt to changes.

6. Long-Term Planning: Develop marketing strategies with a long-term perspective, aligning them with overall business objectives.

7. Measurable Metrics: Define key performance indicators (KPIs) to measure the effectiveness of marketing efforts. Analyse and adjust strategies based on data.

8. Innovation: Encourage innovation in products, services, and marketing approaches to stay ahead of competitors.

9. Ethical Considerations: Ensure ethical and socially responsible marketing practices. Building trust with customers is vital for long-term success.

10. Global Perspective: Consider global markets and adapt strategies to suit different cultures and market conditions if operating internationally.

Q2) What is geocentric orientation? Give some examples of Indian firms which have followed in niche marketing?

Ans) Geocentric Orientation: Geocentric orientation is a global marketing approach where a company views the entire world as a potential market and seeks to standardize its marketing strategies and products across different countries. This approach is essentially market-driven and doesn't limit itself to home country or host country perspectives. Geocentric companies consider the best possible approach, regardless of where it originates.

Key characteristics of geocentric orientation:

1. Global Integration: Products and marketing strategies are standardized across countries, promoting a consistent global brand image.

2. Local Responsiveness: While standardized, geocentric companies also adapt to local market nuances and customer preferences when necessary.

3. Resource Allocation: Resources are allocated based on global market opportunities rather than flavouring any specific country.

4. Talent Mobility: The company may deploy talent globally, transferring employees between countries to leverage expertise.

Examples of Indian Firms with Niche Marketing:

1. Amul: Amul, India's dairy cooperative, is known for its niche marketing strategy. It targets specific market segments with products like "Amul Kool" for flavoured milk, "Amul Baby" for infant milk formula, and "Amul Pro" for protein-rich products.

2. Royal Enfield: Royal Enfield, a motorcycle manufacturer, has a niche market positioning with its retro and classic bikes. Its bikes are popular among enthusiasts looking for vintage aesthetics and a distinct riding experience.

3. Titan Raga: Titan, a prominent watchmaker in India, has a niche brand called "Raga" targeted at women. Raga watches are designed with a focus on elegance and feminine appeal.

4. Forest Essentials: This Indian brand specializes in luxury Ayurvedic skincare and wellness products. It caters to a niche market segment that values traditional Indian beauty and wellness practices.

5. FabIndia: FabIndia offers handcrafted products, including clothing, furniture, and home decor, with a focus on sustainability and traditional Indian craftsmanship. It appeals to consumers interested in eco-friendly and culturally rich products.

6. Bira 91: Bira 91 is a craft beer brand that has gained popularity among urban millennials in India. Its unique flavours and branding resonate with a niche audience seeking alternatives to traditional mass-produced beers.

   
   

These Indian firms have successfully adopted niche marketing strategies to target specific customer segments with tailored products and messaging, allowing them to differentiate themselves in competitive markets.

Q3) Write short notes on the following:

Q3. a) SWOT analysis

Ans) SWOT analysis is a strategic planning tool used by businesses and organizations to evaluate their internal and external environments. It stands for Strengths, Weaknesses, Opportunities, and Threats.

A brief explanation of each component:

1. Strengths: These are internal attributes and resources that give an organization a competitive advantage. Identifying strengths helps organizations leverage their advantages in the market. For example, a strong brand reputation, skilled workforce, or proprietary technology can be considered strengths.

2. Weaknesses: These are internal factors that hinder an organization's ability to achieve its objectives. Recognizing weaknesses is crucial for addressing and mitigating them. Examples include a lack of resources, outdated technology, or inefficient processes.

3. Opportunities: These are external factors and trends that an organization can exploit to its advantage. Identifying opportunities helps businesses adapt and grow. Opportunities can arise from market trends, changes in consumer behaviour, or emerging technologies.

4. Threats: These are external factors that pose risks and challenges to an organization. Recognizing threats allows businesses to develop strategies to protect themselves. Threats may come from competitors, economic downturns, or regulatory changes.

SWOT analysis is a versatile tool used in various aspects of business, including marketing, product development, and strategic planning. It helps organizations make informed decisions by assessing their current situation and aligning their strategies with their strengths and opportunities while addressing weaknesses and threats.

SWOT analysis is often presented as a matrix, with strengths and weaknesses listed internally and opportunities and threats externally. It provides a comprehensive overview of an organization's position in its competitive environment and guides decision-making processes.

Q3. b) Report writing

Ans) Report writing is the process of presenting information in a structured and organized format. It is a common task in various fields, including business, academia, government, and research. Reports are used to convey information, analyse data, make recommendations, and provide summaries of events, research findings, or business activities.

Some key points to consider when writing a report:

1. Purpose: Clearly define the purpose of the report. Understand what information needs to be conveyed and to whom it will be presented.

2. Structure: Reports typically have a standardized structure, including an introduction, body, and conclusion. The body may contain sections such as methodology, findings, analysis, and recommendations.

3. Audience: Consider the needs and expectations of your target audience. Tailor the report's content and tone to suit their level of expertise and interest.

4. Clarity and Conciseness: Use clear and concise language. Avoid jargon and technical terms that the audience may not understand.

5. Visuals: Incorporate visuals like charts, graphs, tables, and illustrations to make complex information more accessible.

6. Citations and References: If your report relies on external sources, provide proper citations and a list of references.

7. Proofreading: Carefully proofread the report for grammar, spelling, and formatting errors.

8. Executive Summary: Include an executive summary at the beginning of the report, summarizing the key points and findings for busy readers.

9. Recommendations: If applicable, provide actionable recommendations based on your analysis.

10. Appendices: Include any additional information, data, or supplementary materials in the appendices.

Effective report writing is a valuable skill in both academic and professional settings. It allows individuals and organizations to communicate information effectively, make informed decisions, and track progress on various projects and initiatives.

Q3. c) Piggy backings

Ans) "Piggybacking" in the context of business and marketing refers to a strategy where one company or brand leverages the established reputation or distribution channels of another company to promote its products or services. This concept is often used in partnerships, collaborations, or joint ventures.

Some short notes on piggybacking:

1. Leveraging Existing Infrastructure: Piggybacking allows a company to utilize the infrastructure, resources, or customer base of another company. For example, a small beverage company might piggyback on a well-known restaurant chain's distribution network to get its products to a wider audience.

2. Shared Brand Value: When two companies collaborate, the reputation and brand value of one can positively impact the other. For instance, a popular fashion brand partnering with a renowned shoe manufacturer can enhance both companies' visibility and credibility.

3. Cost Savings: Piggybacking can be cost-effective, as it reduces the need for extensive investments in marketing, distribution, or infrastructure. For instance, an e-commerce platform can piggyback on third-party logistics providers to streamline its delivery process.

4. Market Expansion: Companies often use piggybacking to enter new markets or segments. By partnering with a local distributor or retailer, a foreign company can navigate regulatory hurdles and cultural nuances more effectively.

5. Examples: Indian companies like Patanjali, known for its herbal and natural products, have piggybacked on the popularity of yoga and traditional Indian medicine to expand their product lines successfully. Another example is Indian startups partnering with global e-commerce platforms like Amazon to gain access to a global customer base.

In summary, piggybacking is a strategic approach that allows companies to benefit from the strengths and resources of other businesses, ultimately driving growth and market success.

Q3. d) GATS

Ans) GATS stands for the General Agreement on Trade in Services, which is a key international treaty that addresses trade in services at the global level.

Some short notes on GATS:

1. Purpose: GATS is one of the agreements under the World Trade Organization (WTO) and aims to promote and regulate international trade in services. It provides a framework for the liberalization of services trade among WTO member countries.

2. Coverage: GATS covers a wide range of services, including sectors like telecommunications, finance, healthcare, education, tourism, and more. It applies to both government-provided services and those offered by private enterprises.

3. Principles: GATS is based on key principles, including non-discrimination (most-favoured-nation and national treatment principles), transparency, and progressive liberalization. These principles promote fair and equal treatment of foreign service providers.

4. Negotiations: GATS allows member countries to negotiate specific commitments on the liberalization of services in various sectors. Countries can choose which sectors they want to open up and to what extent.

5. Benefits: GATS provides opportunities for increased access to foreign markets for service providers, which can lead to economic growth, job creation, and improved services for consumers. It also encourages competition, which can lead to higher service quality and lower prices.

6. Challenges: Implementing GATS can be challenging, as countries often have differing views on the extent of liberalization and the protection of their domestic service industries. Balancing liberalization with the need to protect public services is a common challenge.

7. Indian Firms: Several Indian firms have embraced niche marketing strategies, focusing on specialized services in areas like information technology, pharmaceuticals, and business process outsourcing. For example, companies like TCS, Infosys, and Cipla have built strong international reputations in their respective niches.

In summary, GATS is a significant international agreement that governs trade in services among WTO member countries, with the aim of promoting fair and transparent international trade while respecting the unique characteristics of different service sectors.

Q4) Differentiate between the following:

Q4. a) Classification and Tabulation

Ans) Comparison between Classification and Tabulation:

Q4. b) Direct mail and Advertising

Ans) Comparison between Direct mail and Advertising:

Q4. c) Warranty and Guarantee

Ans) Comparison between Warranty and Guarantee:

Q4. d) Direct and Indirect Selling Channel

Ans) Comparison between Direct and Indirect Selling Channel:

Q5) Comment briefly on the following statement:

Q5. a) “Global positioning is most effective for product categories that approach either end of 'high-touch high-tech' continuum”.

Ans) The statement suggests that global positioning is particularly effective for product categories that fall at the extremes of the "high-touch high-tech" continuum. Let's break down what this means:

1. High-Touch: This refers to products or services that require a significant level of personal interaction, customization, or service. Examples include luxury goods, high-end fashion, or personalized consulting services.

High-Tech: On the other end of the spectrum are products or services that heavily rely on technology, innovation, and automation. This can include electronics, software, or cutting-edge medical devices.

The effectiveness of global positioning for these categories can be understood as follows:

1. High-Touch Products: For luxury or high-touch products, global positioning can be highly effective. Brands in this category often rely on their reputation, exclusivity, and image. By positioning themselves strategically in global markets, they can reach affluent customers worldwide who seek unique and prestigious offerings.

2. High-Tech Products: In the case of high-tech products, global positioning is also crucial. These products typically require access to international markets to scale and recoup research and development costs. Additionally, technology-driven products often benefit from global networks for innovation, collaboration, and market feedback.

However, for products that fall in the middle of the continuum, the approach to global positioning might differ. These products often require a balance of technology and personalized service. The key takeaway is that a company's global positioning strategy should align with the nature of its products or services and cater to the specific needs and expectations of its target customers.

Q5. b) “That the potential market size and growth would be an important factor in selecting markets”.

Ans) The statement, "That the potential market size and growth would be an important factor in selecting markets," highlights a fundamental consideration in strategic business decision-making. It emphasizes that when a company is deciding where to expand or allocate resources, the size and growth prospects of a market should play a pivotal role in the decision-making process.

Here are some key points to consider about this statement:

1. Market Potential: The size of a market reflects its current capacity to absorb goods or services. A larger market typically suggests more opportunities for sales and revenue generation.

2. Growth Prospects: Market growth indicates the potential for future expansion. A growing market may offer sustained demand, increasing revenue potential over time.

3. Risk Mitigation: Entering markets with significant potential size and growth can help mitigate risk. A larger market can absorb fluctuations in demand or competition better than smaller, stagnant markets.

4. Strategic Alignment: Market selection should align with a company's overall strategy. Different markets may offer varying levels of growth, risk, and compatibility with a company's products or services.

5. Resource Allocation: Companies must allocate resources effectively to maximize returns. Prioritizing markets with significant potential ensures that resources are invested where they can yield the greatest return on investment.

6. Competitive Advantage: Market selection also considers the competitive landscape. A market with substantial potential may attract more competitors, affecting profitability and sustainability.

In essence, the statement underscores the importance of conducting market research and analysis before entering new markets. Understanding market size and growth dynamics is crucial for making informed strategic decisions and optimizing business opportunities.

Q5. c) “Communication has a very important place in marketing”.

Ans) The statement, "Communication has a very important place in marketing," underscores the fundamental role that effective communication plays in the success of marketing efforts. Here are some key points to consider:

1. Information Dissemination: Communication is the vehicle through which businesses convey information about their products, services, and brand to potential customers. It allows companies to educate their target audience about what they offer.

2. Building Awareness: Effective marketing communication builds brand awareness. It ensures that the target audience knows about the existence of a product or service. Through various communication channels, such as advertising, social media, and content marketing, companies create a presence in the minds of consumers.

3. Creating Interest: Communication strategies aim to pique the interest of potential customers. Engaging and compelling messaging can make people curious about a product or service, motivating them to learn more.

4. Establishing Trust: Trust is a critical factor in consumer decisions. Communication that is transparent, truthful, and consistent helps in building trust between a brand and its audience.

5. Influencing Behaviour: The ultimate goal of marketing communication is to influence consumer behaviour. This could include encouraging them to make a purchase, sign up for a service, or take some other desired action.

6. Feedback Loop: Communication is not just about talking to customers; it's also about listening. Through feedback from customers, companies can refine their products, services, and marketing strategies.

7. Competitive Advantage: In a competitive market, effective communication can be a key differentiator. Companies that can communicate their unique value propositions clearly and persuasively often gain a competitive advantage.

8. Customer Engagement: Communication is essential for ongoing customer engagement. Building long-term relationships with customers requires continued communication to keep them informed and engaged.

In summary, communication is the bridge between businesses and consumers in the world of marketing. It informs, persuades, and influences consumer behaviour, making it an indispensable component of successful marketing strategies.

Q5. d) “The revolutionary changes in the information technology is sweeping across global business”.

Ans) The statement, "The revolutionary changes in information technology are sweeping across global business," underscores the profound impact of technological advancements on the business landscape worldwide. This comment is highly accurate and can be elaborated on in the following ways:

1. Global Transformation: Information technology has triggered a global transformation in the way businesses operate. It has transcended geographical boundaries, enabling companies to reach markets and customers on a global scale. This has opened up new opportunities and challenges for businesses of all sizes.

2. Digitalization: The digitalization of business processes, from operations to marketing and customer service, has become a necessity. Companies that embrace digital technologies gain efficiency, competitiveness, and the ability to respond quickly to changing market dynamics.

3. Data-Driven Decisions: Information technology has empowered businesses to collect, analyse, and utilize vast amounts of data. This data-driven decision-making has enhanced strategic planning, marketing strategies, and customer experiences.

4. E-Commerce: The rise of e-commerce is a prime example of how IT is reshaping business. Online shopping has become the norm, and businesses without a strong online presence may struggle to survive.

5. Remote Work: The COVID-19 pandemic accelerated the adoption of remote work, made possible by IT infrastructure. This shift has transformed the workplace, impacting productivity, employee expectations, and even office space requirements.

6. Cybersecurity: The digital era has brought cybersecurity to the forefront. Businesses must invest in protecting their data and systems from cyber threats.

7. AI and Automation: Artificial intelligence and automation are revolutionizing industries, from manufacturing to healthcare. These technologies optimize processes, reduce costs, and enhance decision-making.

In conclusion, information technology is not just an enabler but a driving force behind the evolution of global business. It has ushered in an era of unprecedented connectivity, efficiency, and innovation, fundamentally reshaping how companies operate and compete in the modern world.