Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Review and Discussion Questions
Chapter 1: Essentials of International Marketing
Review questions
1. Define international marketing and marketing. What is the difference between them?
International marketing is the utilization and adaptation of the best marketing practices
for the purposes of conducting commerce in other countries. It includes conducting
commerce with customers, clients, partners, society at large, and the overall global
community. To be successful in the international marketplace, marketers learn about new
cultures as they adapt to changes in the environment. Marketing in an international
context requires comprehension of these and many other forces and factors.
Marketing may be defined as “discovering consumer needs and wants, creating the goods
and services products that meet those needs, and then pricing, promoting and delivering
those goods and services.” The American Marketing Association (AMA) notes that
marketing activities include a set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
2. What are the four components of the marketing mix?
The four Ps of the marketing mix are product, price, place (or distribution), and
promotion.
3. What components are included in the promotional mix?
The promotional mix includes advertising, sales promotion, personal selling, direct
4. Define a market and give an example.
A market consists of people with wants and needs, money to spend, plus the willingness
and ability to spend money on those wants and needs.
5. What is the difference between needs and wants?
Needs are the necessities of life that all humans require for their survival and well-being,
whereas, wants are specific expressions of needs through the desire for specific objects.
6. How do wants lead to demand?
When consumers have the ability and desire to satisfy their wants, this creates demand.
7. What is the market segmentation process?
The process of grouping consumers based on their needs, attitudes, and interests into
8. Define target market.
A target market consists of a specific, identifiable market segment that a company seeks
to reach.
9. What is the relationship between positioning and differentiation?
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Positioning is creating a perception in a consumer’s mind about the nature of a company
10. Define globalization and identify the four divers of this process.
Globalization is the increased interconnectedness of consumers and businesses. The four
immigration and emigration patterns, and governmental actions.
11. What are the five factors that create international marketing complexity?
The five factors that create international marketing complexity are: culture, language,
political and legal systems, economic systems, and infrastructure.
12. Define culture.
Culture is the beliefs, customs, and attitudes of a distinct group of people.
13. Describe how language might influence marketing.
Language is extremely important in international marketing. Language will affect the
14. Compare and contrast economic systems with political and legal systems.
An economic system is the means by which countries allocate resources, goods and
services to citizens. The types of economic systems present in international commerce
include capitalist, communist, and mixed-economies. Political systems consist of the
Instructor Resource
Baack et al., International Marketing, 2e
15. Define infrastructure.
Infrastructure is defined as the organizational and physical structures that are essential for
societies to operate.
16. Define sustainability.
Sustainability refers to meeting the needs of the current generation in a way the leaves
17. What are the five stages for leveraging sustainability?
A sustainability framework
Stage 1: Viewing compliance as opportunity
Action: Comply with the most stringent rules and to do so before they are enforced
18. Define bottom–of-the-pyramid.
The group of consumers who live on less than $2 per day.
19. Define cultural relativism and the justice approach to ethical issues.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Cultural relativism, represents the concept that an individual’s culture should inform the
ethical or unethical implications of their beliefs and actions. What is accepted by one
culture should be the standard when conducting business in that region.
Discussion questions
1. The marketing mix is manipulated to meet target market needs and wants. How might the
following companies use this process to satisfy consumers?
The four Ps of the marketing mix are product, price, place (or distribution), and
promotion.
Jones Soda
o Jones Soda is an alternative beverage company. Jones can use the first P (product)
to continue to offer their consumers unique beverages by offering new flavors and
using high quality ingredients such as using sugar instead of high fructose corn
syrup in their beverages. The flavors and ingredients can differentiate Jones from
its competitors. Jones can manipulate the second P (price) to convey quality to
consumers – they can charge a higher price than other comparable beverages.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
sponsor, events that their target audience attends.
Red Bull
o Red Bull is also an alternative beverage company. Red Bull is the market leader
in the energy drink category. They can use the first P (product) to offer new
variations of their popular drink – such as, calorie free options and new flavors.
They could also offer smaller options that contain the benefit of their original
product. Red Bull can manipulate the second P (price) to offer quantity discounts
to loyal consumers or charge a fair price to keep their customers loyal instead of
switching to another brand. Red Bull could manipulate the third P (place) by
Haier
o Haier offers consumer electronics and home appliances. They started as an
international company and international markets are often very different than US
markets. They can manipulate the first P (product) to offer unique small space
appliances – this is a niche market that they can target and offer specific products
to this market. They can also manipulate product by offering high quality and
defect products in these markets. They can manipulate price to offer a good value
to introductory customers, such as first time buyers, give them quality products
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
awareness, by using multiple types of advertising and marketing they could
enable brand recall for consumers shopping for appliances.
Sony
o Sony offers many different types of electronics. For this example, we will focus
on Sony TVs. Sony could manipulate the product to offer a larger or clearer
television set. They could use this p to differential themselves from the
competition. Sony can manipulate price to create a better value for their
customers. They can offer a higher quality at a comparable price to their
competitors. They can manipulate place to make it convenient for consumers to
Hyundai
o Hyundai sells automobiles. Hyundai can manipulate product to offer a unique
product to consumers. They can offer a high quality car and manipulate the
second P (price) to offer this car at an affordable price to reach a new market.
2. There are four main drivers of globalization: 1) channels of communication, 2) lower
transportation costs, 3) immigration and emigration patterns, and 4) governmental
actions. How have these forces influenced your own life? Consider both your social life
and your interaction with businesses.
There are many ways in which the drivers of globalization have influenced by social
life and interactions with businesses. Channels of communication have not only
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
influenced how I interact with my friends through text messaging, cell phones, emails
and Facebook, but have also changed the way in which I interact with my colleagues
and my family. Instead of either calling or writing someone a letter, there are many
ways to interact with one another. Also, channels of communication have influenced
the way I interact with businesses. For example, if I have a question or a complaint
about a product I can first check the company’s website to look for additional
information or I can email the company to let them know I am dissatisfied with a
product or service.
Lower transportation costs have influenced the products I buy and the places and
friends that I am able to visit. I am able to buy imported cheese and electronics from
my local stores. I am able to travel cross-country to visit friends that I haven’t seen in
a while. If transportation costs were not lower than previous times I would not be able
to afford to do these things.
3. Identify differences, in simple terms, differences in the factors creating international
marketing complexity for the following countries. These factors are culture, language,
political and legal systems, economic systems, and infrastructure.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
India – Is a complex country that is very big, has many people, and is broken up into
many different territories. Each territory speaks their own language, thus, a national
marketing plan would be difficult. While there is a common language, this still varies
across regions and contains different dialects. It would be very difficult to create a
mass marketing plan. Additionally, India has a very large proportion of the citizens
living under the poverty line, making it very difficult for many people to purchase
daily necessities. Transportation (infrastructure) can be very difficult to navigate in
India – the cities may be very crowded while some locations in the country are very
remote.
Brazil – Is a very large country, it is the fifth largest country in the world. Brazil is
not only large, but it has extremely diverse terrain. This could make distribution of
products very difficult. Brazil has a favorable political and legal system for
businesses. Brazil is composed of many different cultures and ethnic groups which
Instructor Resource
Baack et al., International Marketing, 2e
would make large scale distribution difficult.
4. Sustainability is increasingly viewed as a potential driver of firm success. What are the
implications of this perspective? Incorporate the framework in Figure 1.7 into your
answer.
Sustainability can be seen as a positive opportunity for firms. The five stages can be used
to see how sustainability can add to firm value. In the first stage, Stage 1: Viewing
compliance as opportunity, firms can find ways to use sustainable options in an
affordable way before they enforced. If they do this they can avoid having to enforce
expensive changes to their operations after they become enforced. In the second stage,
Stage 2: Making value chain sustainable, firms have the opportunity to make their
supply chains and operations sustainable. Here firms can make sure their chains and
operations are sustainable and possibly affordable. Through this they can ensure their
operations can continue into the future without harming the environment. In the third