Thesis on "Marketing International Market Discuss the Marketing Implications"

Thesis 5 pages (1578 words) Sources: 3 Style: APA

[EXCERPT] . . . .

Marketing

International Market

Discuss the marketing implications of Hofstede's typology.

Geert Hofstede's dimensions analysis can be used to in order to assist business people in better understanding the intercultural differences within regions and between counties. The classification scheme that Hofstede used in order to analyze these differences includes: power distance, uncertainty avoidance, individualism, masculinity, and long-term orientation. The concept of power distance focuses on the degree of equality, or inequality, between people within the country's society. Individualism focuses on the degree to which the society reinforces individual or collective, achievement and interpersonal relationships. The idea of masculinity focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. The uncertainty avoidance index focuses on the level of tolerance for uncertainty and ambiguity within the society in unstructured situations. And long-term orientation focuses on the degree to which the society embraces, or does not embrace long-term devotion to traditional, forward thinking values (Geert Hofstede ™ Cultural Dimensions, 2009).

For those who work in international business especially marketing, it is very important to know how people in other cultures behave. To often people have the idea that deep inside all people are the same. This is anything but close to the truth. This is why it is very important when going into another county to not make decisions based on how things are done in the home country. Geert Hofstede's research gives insights into other cultures so that marketing decisions can be made effectively when doing business in these countries. If one understands the differences and applies them properly, the level of frustration, anxiety, and concern should be reduced (Geert Hofstede ™ Cultural Dimensions, 2009).

3a. Discuss the advantages and disadvantages of the major methods of global market entry.

There are a number of ways in which organizations can enter foreign markets. The three main ways to enter a market are by direct or indirect export or production within a foreign country. Exporting is defined as the marketing of goods produced in one country into another. In direct exporting the organization may use an agent, distributor, or overseas subsidiary, or act via a Government agency. The largest indirect method of exporting is known as countertrade. Countertrade can be used to stimulate home industries or where raw materials are in short supply. It also gives a basis for reciprocal trade. The advantages of exporting are: manufacturing is home based and thus less risky than overseas-based manufacturing; it gives an opportunity to learn overseas markets before investing in bricks and mortar, and it reduces the potential risks of operating overseas. The disadvantage is that one can be at the mercy of overseas agents and so the lack of control has to be weighed against the advantages (Chapter 7: Market Entry Strategies, (n.d.).

3b. Discuss the international marketing implications of Common and code laws.

The marketing implication of Common and Code Laws can be significant, since code law tends relatively less flexible and adaptable. It is also subject to strict and literal interpretation. This can be easily illustrated by looking at the issue of trademark restriction regulations. Under common law the ownership of a trademark is determined by priority of its use. Ina code law country ownership is determined by priority of registration. Firms often find themselves in the position of having to buy back their own brand names in order to use them when entering a new country (Gilligan and Hird, 1986).

5. In recent years, multi-country cooperation arrangements have increased. Discuss any four of the following and critically state why this form arrangement is preferred.

b) Preferential arrangements- involve a number of countries trading with each other at rates of protection lower than those applying to trade with countries outside the group (Vousden, 1990). This is seen as the preferred arrangement because it opens up trade within these countries while allowing for lower rates and thus more profit.

c) Free trade area- happens when there has been complete removal of all trade barriers within a group and yet all countries within the group are allowed to set their own tariffs or restrictions with outside countries (Vousden, 1990). This is seen as the preferred arrangement because it allows for the best of both worlds. It gives this group of countries to increase trading among themselves with lower rates, but yet still be able to require higher rates from countries outside of the group, allowing for an even bigger increase in profits.

d) Custom union- is a free trade area in which all of the member countries impose a common set of tariffs with outside countries (Vousden, 1990). This is seen as a preferred arrangement because it allows for these countries to increase trade within the group at lower rates, but require a common higher rate in regards to outside countries. And since profits are typically distributed equally among all the countries, the bottom line is that everyone has increased profit.

e) Common market- happens when a customer union has no impediments to factor mobility between member countries (Vousden, 1990). This type of agreement is seen as being preferred because it provides for free flow of factors of production along with free flowing outputs.

6a. Discuss the Keiretsu and its benefits and drawbacks to global marketers.

Keiretsu is a Japanese term that describes a set of interlocking relationships among suppliers and manufacturers. Principles of Keiretsu are rooted in fact that it is really hard to get a company off the ground and that the fastest and surest way is to build an important new company is to work with partners. Keiretsu represents a an entire social system in which national culture, government policies, corporate strategies and management practices are fully integrated, mutually supportive and reinforced through incentives and rewards. The benefits that this provides include: being able to leverage ways of doing things that other people are doing and lowering costs by not having to reinvent the wheel along each step. The drawbacks include: getting set in doing something in one particular way without ever revisiting it to make sure that it is still the way available (American Keiretsu, 1998).

6b. Differentiate between conciliation and arbitration.

The foundation of arbitration is the parties agree to submit to arbitration in regards to all disputes that may arise between them. The stipulation to use arbitration can be made at the time of entering the contract itself, so that if any dispute arises in future, the dispute can be referred to arbitrator as per the agreement. Evidence is presented to the arbitrator and a decision is made in favor of one party or the other. The decision of the arbitrator is legally binding. Conciliation is the friendly settlement of disputes between parties with the help of a conciliator. The conciliator brings parties together and tries to solve the dispute using his good sense. The conciliator has no authority to award anything; they merely help parties to arrive at a mutually acceptable settlement. The settlement agreement is signed by both the parties and the conciliator and it has the same status and effect as if it was an arbitral award (Arbitration and Conciliation Act, 1996, n.d.).

7. A clear understanding of the cultural environment is crucial in advancing a credible marketing strategy. Discuss the elements of culture and its implications.

There are many different types of cultures across the world and each culture has its own unique feel. Understanding these different elements within a culture is very important so that one doesn't offend the culture in which they are trying to market a product. When defining the term culture, there are several elements that together constitute the culture of a particular region or the culture of particular people. These elements include:

Language: Is a system of patterned… READ MORE

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