LO1 Demonstrate an understanding of the international environment and its impact on international marketing

International Marketing

(MARK08006)

General Description of Module

Credit value: 20

Core / Option: Core

Module code: MARK08006

Module Co-ordinator:         

Module Moderator:              

Module Lecturer:                 

Learning Outcomes

At the end of this module the student will be able to:

LO1 Demonstrate an understanding of the international environment and its impact on international marketing

LO2 Identify and evaluate international market entry strategies

LO3 Undertake and apply international marketing activities in areas of product, price, promotion and distribution

The aim of this module is to introduce students to the challenges and complexities of marketing beyond a firm’s domestic borders.  The basic principles of marketing still apply eg meeting the needs of customers, however, other factors have to be understood if this is to take place.  Key topics within this module include globalisation, culture, market selection, market entry methods, monitoring external forces, standardisation and adaptation of products and communication messages, currency fluctuations, logistics and international retailing.

To fully understand any module at this level it is calculated that 200 hours is the standard amount of time a student has to dedicate to it during the trimester.  36 of these hours will take part in a classroom environment, another 30 or 40 hours may be spent working on the assessments with the remainder of the time spent reading the relevant chapters of the book and case studies prior to the lecture.  The lecture notes are based on the assumption that students have read all of the material in advance and have the ability to take part in classroom activities.  This will help ensure that you get the most out of this subject during the trimester.

Module Issues   

Should you have any problems with the way the class is taught or assessed then please speak to your lecturer as soon as possible. This will ensure that minor problems can be resolved at the earliest possible opportunity and your studies are not hindered in any way. 

Student Voice

Feedback from students is welcomed for this module and can be utilised by talking informally with the lecturer, or formally via the Student Staff Liaison meetings and the Module Evaluation Questionnaire at the end of the module.

Moodle

It is important that students access the Moodle site on a regular basis. The site will host all of the relevant information regarding teaching materials, assessments, links to relevant websites, discussion forums, quizzes and anything else which might be of interest to students

Assessment

There are two assessment elements for this module:

Online Test                                         30% (Learning Outcome 1)

Report                                                            70% (Learning Outcomes 2 and 3)

 

The online multiple choice test will be on Moodle and will take place around week 5.   These questions will be based around class notes, the course textbook and tutorial materials.

International Marketing Case Study

S’Annies is a family-owned, Scottish-based producer of high quality fashion shoes for  women.  They have been in business for over 70 years and have a turnover of £23m per year, the bulk of which comes from the UK and Ireland.    A small percentage of sales are a result of direct enquiries from customers who have moved abroad and are unable to purchase the shoes in their new country.  Their UK sales come from the following sources:

75% directly to independent retailers

18% from their own shops in Edinburgh, Glasgow and London.

2% via their online stor

Key Points about the firm include:

• They have a range of 11 different styles of shoes available in standard sizes.  Each shoe is branded under the S’Annies name.

• Their cheapest shoe is priced in the shops around £200 with the most expensive priced up to £600.

• Their profit margins vary depending upon the channel being utilised. On average these are as follows: Independent retailers 15%, Direct to customers 30%, own shops 20%.

• They have a budget of £0.5m for marketing communications in the UK which is allocated in the following ways:

• Advertising (Consumer and Trade) 40%
• PR agency 40%
• Trade Promotions 20%

• They are proud of their Scottish identity which is reflected in the St. Andrew’s cross as part of their brand logo.

The Board agree that they need to expand into European markets but there is a difference of opinion about the best way they should move forward.  

 

You are an International Marketing consultant who has been approached by the Board to help them with their transition into these markets.

Your own knowledge about both the company and the high-end shoe market is

• It is highly competitive market

• None of the directors or managers have an in-depth experience of international marketing

• The Directors have been concerned by reports that trading on their Scottish heritage might not be a strong selling point.  Many trade experts consider Italy to be the home of high quality fashion shoes for women.

• Consumers in the quality segment are very demanding.

• The product range of S’Annies might be too limited.

• S’Annies brand name isn’t known by customers in Europe but there is some awareness from experts in the trade.

• Pricewise the firm is considered to be on the mid-range part of the quality shoe market.

• Their target is not price-sensitive but are focused on product quality.

• New fashions and styles are an important element in developing a strong reputation.

• Marketing communications budgets for other independent shoe brands are higher compared with S’Annies.

• A combination of the pandemic, the implications of Brexit and volatile political changes is causing uncertainty in financial markets and has led to fluctuations in the exchange rate.

• The firm’s website is acceptable for the UK market but would require considerable investment if it was to be used as a platform for selling shoes across Europe. 

• The firm has received a letter from a German soap powder manufacturer named “Sannee”. They have expressed their concern at the similarity between the respective brand names and have asked the company to amend their name for their European markets

• The company has agreed to provide funds of up to £300,000 over 18 months to promote the company.   The Marketing Director wants to spend the money on attending trade fairs, advertising in trade journals and building a sales team to develop relationships with distributors and retailer.  The Managing Director is excited by the fact that the agent of a leading digital influencer has contacted him to indicate she would like to become the ‘face’ of S’Annies and promote them on her social media accounts. Her fee would account for most of the budget allocated to promotion.

• Some directors have expressed their desire to open a flagship store in a major European capital city as a way of ‘announcing’ their arrival in Europe. 

Questions

You are required to write a report to the Board of Directors to provide them with information on the following issues.

a) Identify and explain 2 viable market entry methods open to the firm outlining the advantages and disadvantages of each method.  State what would be your chosen approach and why (20).

b) The Board have asked for your advice on a number of international marketing issues and wish the following questions to be addressed;  Note – the answers to the following questions should be linked back to your choice of Market Entry method.

Product What is the relevance of the country-of-origin effect? (5) What branding issues must the company be aware of? (5) What elements of the product will need to be adapted? (10)

Price  What increased costs will the company face? (7))

What are the advantages and disadvantages of adopting a uniform pricing strategy in all of these countries? (13)

Distribution Explain why the ‘grey market’ might impact upon the firm (5)

What are the advantages of developing their online presence compared to opening a flagship store? (15)

Communication  Should they focus upon trade fairs or take up the offer from the model? Justify your answer. (10)

Which other promotional method would you recommend to the firm, outline your reasons for this choice. (10) 

Total Marks 100

Word Count 2,500