A) What is your interpretation of the term "climate for advertising"?

Climate for advertising refers to local values system that determine the potential
viability and effectiveness of export advertising of a country. It evaluates the
message as either desirable or undesirable and can affect or be affected by the
legal/political situation. In this scope climate for advertising has to do with the
general attitude of the government and lending institutions toward advertising
activities.
B) What factors cause the climate for advertising to differ among
countries?
The following factors cause the climate for advertising to differ among countries:

Economic system
Social structure
Cultural background
Religious climate
State monopoly
Censorship
Restriction on advertising

Economic system An organized way in which a state or nation allocates its

resources and apportions goods and services in the national community. There are
four types of economic system:
Scarcity is the fundamental challenge confronting all individuals and nations. We
all face limitations... so we all have to make choices. We can't always get what we
want.
Traditional economic system is shaped by tradition. The work that people do, the
goods and services they provide, how they use and exchange resources, all tend to
follow long-established patterns.
In Market economy the government does not control vital resources, valuable
goods or any other major segment of the economy. In this way, organizations run by
the people determine how the economy runs, how supply is generated, what
demands are necessary, etc.
Mixed economic system combines elements of the market and command
economy. Many economic decisions are made in the market by individuals. But the
government also plays a role in the allocation and distribution of resources.
Social structure Social organization based on established patterns of social
interaction between different relationships (such as those between parents and
children, teachers and students, employers and employees), regulated through
accepted norms and shared values. Social stratification is an example of social
structure which refers to the idea that society is separated into different strata
(levels), guided (if only partially) by the underlying structures in the social system.

Cultural background constitutes the ethnic, religious, racial, gender, linguistic or

other socioeconomic factors and values that shape an individuals upbringing. The
term "cultural background" is a reference to any culture or subculture that an
individual identifies as his or her heritage or background. Examples of different
cultural groups include Vietnamese, English, African American and Irish Catholic

Religious climate has to do with variety of religions and their rules and norms
and how they interact with or differ from each other within a society.
State monopoly A forced form of market domination whereby a national,
regional or local administration, agency or corporation is the only provider of a
certain product or service since any competition with their product is legally
prohibited. Ex: until 17 years ago telecommunication was and could Marely be run
by the government in Mozambique.
Censorship is the name for the process or idea of keeping things like obscene
word or graphic images from an audience. It is the suppression of speech, public
communication or other information which may be considered objectionable,
harmful, sensitive, politically incorrect or inconvenient
Restriction on Advertising refers to the laws and rules defining the ways in
which products can be advertised in a particular region. These restrictions can be
general but affecting only some aspects of advertising such as placement, timing,
and content, or can affect a particular range or type of products such as restrictions
on advertising products that are high in fat, salt or sugar or highly alcoholic
products.

C) Select one foreign country and explain how the climate for
advertising in that
country is important to an exporter.
The Advertising Standards Authority of Singapore (ASAS) is an Advisory Council to
the Consumers Association of Singapore (CASE). It was set up in 1976 to promote
ethical advertising in Singapore and is the self-regulatory body of the advertising
industry
The Singapore code of advertising
The SCAP is the guiding principle of ASAS. This Code seeks to promote a high
standard of ethics in advertising through industry self-regulation.
-The basic premise of SCAP is that all advertisements should be legal, decent,
honest and truthful.
-SCAP was formulated against the background of national law, international law and
practice, including the International Code of Advertising Practice published by the
International Chamber of Commerce.

Advertisements should not mislead in any way by inaccuracy, ambiguity,

exaggeration, mission or otherwise. More specifically, advertisements should not
misrepresent any matter likely to influence consumers attitude to any product,
advertiser, or promoter;
Misrepresent any information to mislead consumers into believing any matter that is
not true, such as the source of the product, quality of the product, obligation (or
non-obligation) in using a trial product, and others;
Mislead consumers about the price of goods or services;
Underestimate the actual total price to be paid;
Mislead consumers to overestimate the value or mislead consumers regarding the
conditions on the terms of payment such as hire purchase, leasing, instalment sales
and credit sales; or
Mislead consumers regarding the terms or guarantee, delivery, exchange, return,
repair and maintenance; and mislead consumers regarding the extent of benefits
for charitable causes.

This system is important to exporters who may be considering entering a market, or

who need to decide whether to leave a market they are already in in Singapore
since the code of advertising introduced by ASAS help promote legal, decent,
honest and truthful advertising under the background of national law, international
law and practice, including the International Code of Advertising Practice published
by the International Chamber of Commerce, exporters will be entering a market
where they can advertise and sell their products under fair and well organized
principals. They can also use local and/ or international legal instruments against
anyone who fringes the code of ethics in advertising in Singapore such as by
producing illegal, indecent, dishonest or misleading advertisements as a way to
promote his products over other marketers products.

Question 2
Standardization has often been viewed as an efficient strategy for global marketers
while others have argued for the relative merits of adaptation. These two points
have been object of discussion for long but no solution has been brought to light
regarding them. In my view, for an exporter there are several alternative
approaches that can be used to be successful in global market.
The way an exporter chooses to export his products can have a significant effect on
his export plan and specific marketing strategies. The various approaches to
exporting relate to his companys level of involvement in the export process. There
are several alternative approaches that may be used by an exporter to be
successful; he can choose between direct exporting and indirect exporting of his
products.

An indirect approach provides a way to enter foreign markets without the potential
complexities and risks of direct exporting. Governments normally impose strict rules
for importing to their territories or opening subsidiaries in their territories. With
indirect export, an exporter may avoid almost all of the restrictions. Several kinds of
intermediary firms provide a range of export services, and each type of firm can
offer distinct advantages to firms seeking to enter a foreign market. An exporter can
use one or more of the following strategies to be able to export successfully:
1. Passively filling orders from domestic buyers, who then export the product.
These sales are identical to as far as the original seller is concerned. Another
party has decided that the product in question meets foreign demand. That
party assumes all the risks and handles all the exporting details. Being a local
company that is aware of the local values, culture, norms and political
situation, the exporters exporting plan will be carried out successfully.
2. Seeking out domestic buyers who represent foreign end users or customers.
Many foreign corporations, general contractors, foreign trading companies,
foreign government agencies, foreign distributors, retailers, and others in the
exporters country may purchase for export. These buyers constitute a large
market for a wide variety of goods and services. In this approach, the
exporters company may know that its product is being exported, but the
domestic buyer still assumes the risks and handles the details of exporting.
3. Exporting indirectly through intermediaries. With this approach, the exporter
engages the services of an intermediary firm that is capable of finding foreign
markets and buyers for his products. International trade consultants, and
other intermediaries can give access to well-established expertise and trade
contacts, but the exporter retains considerable control over the process and
can realize some of the other benefits of exporting, such as learning more
about foreign competitors, new technologies, and other market opportunities.
Through these strategies, the exporter comes to understand the exporting
standards of the market in which he has been exporting through intermediaries or
representatives, and gradually increase the level of direct exporting or turn to direct
export once he has gained enough experience.
The exporter can also choose to Export Directly. This approach is the most
ambitious and challenging because the exporter handles every aspect of the
exporting process from market research and planning to foreign distribution and
payment collections himself. The advantages of this approach to the exporter
include more control over the export process, potentially higher profits, and a closer
relationship to the overseas buyer and marketplace, as well as the opportunity to
learn what he can do to boost overall competitiveness.
However, those advantages come at a price; his company needs to devote more
time, personnel, and resources to direct exporting than it would to indirect
exporting. Additionally, the exporter may have to face severe export rules of the
foreign market they are exporting to and will go through a period of adaptation to

the local values, norms, rules, politics and standards which will certainly have
significant impacts on his export plan.
The exporter may also choose to use both direct and indirect exporting. For
example, he may try exporting directly to nearby markets (to neighbour countries)
such as to South Africa in the case of Mozambique, while letting intermediaries or
local partners handle more challenging sales to Nigeria or China.

Question 3
Cultural considerations may influence branding, packaging and labeling
considerations. Language differences may require to consider the need for product
changes. Such changes include product design, branding, labeling, packaging and
service arrangements.
A lifestyle brand embodies the values and personality of its audience and speaks to
them in a targeted and authentic way. In packaging, this is particularly important as
the look and feel of the package greatly influences the purchase decision.
Given the diverse import community, language is more influential in certain
contexts and at certain points in the marketing process. Labeling products in only
the manufacturing language may require greater effort for customer to understand
the message or the instructions of use. The instruction on how the product is used
or the information on the benefit of the product to the consumer is very relevant
and if not clear may have negative impact on it acceptability. As soon as a product
goes international, its packaging and label need to bear two or three languages
where at least two are lingua-franca or at least one is specifically the language of
the target market.
I myself have had bad experience with a Toyota Harrier i owned being completely
labeled in Japanese only. Everything is written in only Japanese including users
handbook and repair-book and even the welcome message while entering the car is
expressed in Japanese. I confess having owned the car for three years but never
understood a word of what was written in the car and its manuals and what was
said on entering the car. This was one of the reason why I sold the car despite
admiring its performance and comfort.
Brand name selection is still an art, but management judgment has to enter
because the matter is important. It is difficult to pinpoint what constitutes a good
brand name, because some of the successful brand names seem to defy even the
obvious rules. Naming, descriptions and taglines that accurately express the brand
positioning can make a huge difference in differentiating the brand and connecting
to the consumer emotionally. A good brand name simply has to be short, simple and
easy to spell and read; easy to recognize and remember; not offensive, obscene or
negative, etc. but language of a brand name is also a very important aspect to
consider. If the product is to be distributed worldwide, I suggest the name to be a
common name in many parts of the world. If the product is specifically designed for
a specific country or region, the selection need to be done very carefully and in local

language of the market so as to avoid culture or language shock. It is not strange

that NISSAN Qashqai was sold under this name in some parts of the world but as
Nissan Dualis in Australia. This is simply because Nissan worried Qashqai could be
pronounced cash cow in Australia. A name addressing magnificence in one
language may be an offense in another, especially when the two languages are
widely separated geographically.
Initially, Coca-Cola had enormous problems in China as Coca-Cola sounded like
Kooke Koula which translates into A thirsty mouthful of candle wax. They
managed to find a new pronunciation Kee Kou Keele which means joyful tastes
and happiness. General Motors whose brand name Nova was unsuccessful in
Spain (no va in Spanish means no go). Pepsi Cola had to change its campaign
Come Alive With Pepsi in Germany as, literally translated, it means Come Alive
Out of the Grave. In Japan McDonalds character Ronald McDonald failed because
his white face was seen as a death mask. When Apple launched the iMac in France
they discovered the brand name mimicked the name of a well-established brand of
baby laxative hardly the image they were trying to project.

Question 4.
Till now I dont think there is a CLASSIFICATION that would automatically eliminated
a product/company from global branding success solely based on the classification.
If even ready-to-eat food or water brands have the potential for global branding, I
dont see why certain products cant despite their size, price or importance.

By far and away most brands will not become global brands, but not because they
cant. Costs of scale, ROI on global verses regional, time required to establish a
global brand, the global marketplaces willingness to accept a global brand the
reasons and obstacles against global branding in 99% plus of the cases will
prevent a product/company from ever becoming a global brand. And while there are
undoubtedly classifications that lend themselves more too globally brand, e.g. many
types of consumer products, just as there are classifications that would be more
difficult to brand globally, in my opinion, classification is not the sole determinant
factor.

Question 5:
Globalization is a system of integration of national economies all over the world.
Involving technological, economic and cultural exchange made possible largely by
advances in communication, transportation and infrastructure. Globalization results
from the removal of barriers between national economies to encourage the flow of
goods, services, capital, and labor. While the lowering or removal of tariffs and
quotas that restrict free and open trade among nations has helped globalize the
world economy, transportation and communication technologies have had the

strongest impact on accelerating the pace of globalization. Culture blending,

companies outsourcing, and technology are examples of globalization.
Glocalization means adopting a business's product or marketing according to the
country in which they are operating, in order to meet the demand for that product.
Glocalization is globalization mixed with local diversity. It illustrates global
uniformity with local differences. The following are examples of glocalization:
McDonalds has specialized menus for different countries around the world, offering
food of the region. MTV shows different programs across the globe so as to
captivate the audience within the region.

E-business (electronic business) is the conduct of business processes on the Internet

and/or other electronic networks such as electronic data interchange (EDI). These
electronic business processes include buying and selling products, supplies and
services; servicing customers; processing payments; managing production control;
collaborating with business partners; sharing information; running automated
employee services; recruiting; and more.

Business conducted through the use of computers, telephones, fax machines,

barcode readers, credit cards, automated teller machines (ATM) or other electronic
appliances (whether or not using the internet) without the exchange of paper-based
documents. It includes activities such as procurement, order entry, transaction
processing, payment, authentication and non-repudiation, inventory control, order
fulfillment, and customer support. When a buyer pays with a bank card swiped
through a magnetic-stripe-reader, he or she is participating in e-commerce.

Online marketing in Global business: The internet has allowed marketers to

benefit from reduced geographic and time constraints, and reach consumers in
various parts of the word in short time and without effort of any kind. The
emergence of the Internet in the early 1990s and its gradual commercialization
through the early 2000s would coincide with the globalization of media and cultural
products. Brands around the world have since attempted to take advantage as well
as keep abreast of the commercial, technological, and cultural trends around
Internet marketing.

Importance of Integrated communication management:

Integrated marketing communication plays an integral role in communicating brand
message to a larger audience. It helps in integrating all essential components of
marketing to communicate similar message to potential and existing end-users. It
as goes a long way in creating brand awareness among customers at a minimal
cost. Integrated marketing communication is essential not only for business to
business marketing but also for direct interaction with customers. Organizations

implementing integrated marketing communication not only successfully promote

their brands among target audience but also develop trust among them. Through
integrated marketing communication, similar message goes to customers
simultaneously, eventually creating a better impact on them. IMC is more effective
as it carefully blends various marketing tools such as advertising, public relations,
direct marketing and so on.

ASSIGNMENT B
Question 1
Marketing plan
Question 2
Answer to question A)
A company that want to start exporting will first have to go through different steps
in order to be successful. A company should not just decide to enter foreign market
prior to having experience in local or domestic market. A company needs first to
understand how business should be done on domestic basis, then introduces some
exports while focusing on domestic market. When the company sees that they can
then adapt their marketing mixes to overseas operations, it can then switches focus
to multinational activities while carrying domestic operations too. At last the
company may decide to establish itself completely in a foreign country. Therefore
exporting is a process that need to be clearly decided on.
Leaving legal process aside and focus on the export process as such, I would first of
all suggest my boss to do an in depth review of the country to which we wish to
export. We need to know the tariffs, the laws, and the foreign currency exchange
risk exposure. We also need to know if their market would support the product we
wish to sell.
There are also many cultural differences across cultures. What is normal in
Mozambique, for example, may or may not be normal in India or the UK, and vice
versa. Each culture has their own ideas, likes and dislikes, and norms.
For example, it possible to get potato chips and soda everywhere around the world
but this would not be the same with pork or dog meet. Of course companies are
looking for synergies that will feed the needs of many cultures, while lowering
overall costs. That is why potato ships and soda can be found almost everywhere in
the world simply because this food is common in almost every part of the world.
I would also remember my boss that firms wishing to export must identify export
opportunities, understand and evaluate the risks, opportunities and problems
associated with doing business in a foreign market, become familiar with the
mechanics of export and import financing, learn where to get financing and export
credit insurance and learn how to deal with foreign exchange risk. If the company is
not ready to carry the process directly on its own, it can hire an export management

company (EMC) to help identify opportunities and navigate paperwork and

regulations.
Additional advice would be to start by focusing initially on just one or a few markets,
to enter a foreign market on a fairly small scale in order to reduce the costs of any
subsequent failures, try to recognize the time and managerial commitment involved
in building export sales, be able to devote attention to building strong and enduring
relationships with local distributors and customers, when needed, hire local
personnel to help the firm establish itself in the foreign market.
Briefly, this is he steps may company should follow to enter international market:
Export potential
To be successful the company must first decide if the export business is really to be
undertaken. if so, the company, the management as well as owners of the company
should be committed towards exporting. The company should also make sure the
products/services are ready for the export market.
Export readiness
The company should review its current financial resources, staff dedicated to
exports, suitable sales literature, business card, price lists, website and Intellectual
Property (IP) registration, etc.
Select product and target market
The company also needs to visit the market and/or its prospective distributors or
representatives and seek to understand the markets rules of doing business,
particularly on issues such as duties and paperwork.
Research your overseas market
The company should also identify its product and target market and gather data to
plan for the export. Market research will help the company to identify the right
target market, competitors in the market, customers, distribution channels and the
best way to promote its product.
Export business plan
Planning is essential to any organisation. Before embarking on any marketing plot, it
is vital for companies to draw up an export business plan as this document can
support a loan application, outlines in detail the direction of the business, describes
the strengths of the company and more importantly helps to set a value to the
business. In fact, without proper planning, companies are more likely to fail or to
waist money and time and my company is not immune to this threat.
Sales and marketing
Sales and marketing allows customers to be aware of a companys business as well
as its products or services. It is through sales and marketing that people know what
a particular company has to offer. In fact, an effective marketing is bound to set a
companys business apart from other competitors. So my company will need to

prepare an effective marketing if its needs to be known, to make known its

products, to get and grow shares in the foreign market, to maintain good relations
with its international customers and to be successful.
Select distribution channels and market entry strategies
This is also an integral part of exporting, as distribution channels are the necessary
links that ensures the manufacturers goods reach the end users, be it through
direct or indirect exporting. So my company needs to study, decide and select its
distribution channels carefully.
Export pricing
My companies must also identify the most appropriate export pricing mechanism for
its business. As pricing generates revenue for any company, it is important to learn
how to effectively choose a pricing strategy so that profit margin is maximised,
resources are optimised, and sales volume are amplified.
Formalise distribution agreement
My company must also formalise a distribution agreement with the countrys
distributor (overseas buyer/importer/reseller). This avoids any future
misunderstandings. The distribution agreement sets out clearly the duties and
responsibilities of each party.
Export transactions and documentations
My company needs to know the export documentations required to export our
products or services, as this may differ according to certain industries and/or
international markets. Having a proper and accurately completed export
documentation is vital as it avoids delays in processing and port clearance. Any
delays in shipment will affect customer loyalty and the business credentials.
International payment methods
Having a good understanding of the various methods of international payment
settlement is essential to ensure that the company selects the most appropriate
terms of payment for its business transactions and that it receives payment for it.
The company should also have a good understanding of exchange rate volatility as
fluctuations can affect profitability and pricing.
Answer to question B)
Segmentation means breaking down the market for a particular product or service
into segments of customers that differ in terms of their response to marketing
strategies.
Like domestic marketers, international marketers conduct segmentation in order to
decide on their positioning strategy. There are also several different methods of
segmenting the global market, depending on demand patterns and consumer
behaviour related to the companys product.

There are three general types of international segmentation: global, regional and
unique. Global segmentation is used when there is a group of consumers with
common needs that crosses national borders. This kind of segment is usually the
youth segment, the affluent segment or related to internet services. Regional
segmentation may be used when the similarity in needs/preferences only extends
across the region or several countries. Unique segmentation take the preferences of
a segment within one country. This is usually necessary for products such as news
services or speciality foods. However, most marketing plans will involve all three
types of segments according to the responses to the marketing mix.
So both consumer-oriented and business-oriented companies should segment
customers using one of several common approaches
Demographics
Demographic market segmentation is one of the most common approaches to
segmenting markets. With this strategy, a company simply divides the larger
market into groups based on several defined traits such as age, race, gender,
marital status, occupation, education and income. As a simple example of usage, a
company that sells feminine hygiene products will include "female" in its description
of its primary market segment.
Geographic
Geographic segmentation is used by companies that sell products or service specific
to a certain community, state, region, country or group of countries. Local
businesses usually get no benefit in paying for national or international advertising.
Companies that operate nationally can often save by delivering the same marketing
messages to a national audience through one television, radio, magazine or
newspaper. Global businesses typically decide whether to maintain a universal
message or tailor messages to each country's marketplace.
Psychographics
Psychographics or lifestyle segmentation has become increasingly common as
companies look to identify consumers based on interests and activities in lieu of
demographics.
Behavioral
Behavioral segmentation is based on user behaviors, including patterns of use, price
sensitivity, brand loyalty and benefits sought. A company may have customers with
a similar demographic makeup but distinct behavioral tendencies. Some may use
the product daily, while others use it weekly or monthly. Higher-income earners may
have more interest in higher-quality models versus low-cost models. This may
prompt the provider to target higher-end products and services to one group and
more value-oriented offerings to lower-income or budget-conscious customers.
Business Segmentation
Segmenting for business customers often has overlap but commonly includes
geographic, customer type and behavior-based strategies. Geographic business

segmentation is similar to that with consumer segmenting. Customer type

segmenting may include business size or the nature of the business. Banks, for
instance, often have different products for small versus large businesses. Behavioral
segmenting is based on repeat or loyal customers versus one-time users.
Big companies such as coca cola and Mc Donald are pure examples of companies
which market on basis of the segments described above. McDonald for example
make some food on geographic, regional and demographic and behaviour basis.
MacDonald based in South Africa is a regional representation which prepares food
based on the food which are common in the region. McDonald also has tests for
youths, women and men. Coca-Cola produces different types of coca cola
considering the eating or food behaviours of its customers differ greatly. Here in
Mozambique for example, fitness companies such as Bulby & Riane Club and
Acadmica Gym make clear distinction between daytime users who are often young
mothers with children, and older retired people, and evening users who are people
who like to keep fit after a busy day at work or at school. These clubs tailor their
facilities to cater for the needs of these different segments, for example by
providing children facilities during the day.

Depending on the type of product that are to be offered on an international market,

medium not small companies may market to some of these segments. Fr example,
separation scientific SA (pty) is a medium size company which operate in the area
of health care technology. The company is headquartered in South Africa but has
extended its business to international market on a region basis. It has segmented its
market based on need of each country. There are products that Sepsci doesnt
export to Mozambique, for example Mozambican health sector does not like
equipments and reagents made in China. So exporting those products to
Mozambique may be a waste of money and time. But the very same products from
china are accepted in Zambia and Zimbabwe. The process of segmentation may
involve high costs and may require much expertise. So for a small company which
may not enough to spend on this process, marketing on the basis of international
market segmentation may be scandalous to the survival of the company.

Question 3
Some of the factors to consider while selecting a channel of distribution are: The
Nature of the Product, The Nature of the market, The Nature of Middlemen, The
nature and size of the manufacturing unit, Government Regulations and Policies and
Competition.
Distribution of goods is as important as production. Existence of an organisation
largely depends upon a proper and well organised system of distribution. It is
therefore, necessary that utmost attention should be paid in selecting a channel of
distribution.

Various constituents of the marketing mix like promotion etc., are closely related to
the channels of distribution. A wrong choice of distribution channel ultimately
increases the price of the product. Deciding a proper channel of distribution is not
an easy task. It involves a careful study and consideration of many factors stated
below.
Many producers do not sell products or services directly to consumers and instead
use marketing intermediaries to execute an assortment of necessary functions to
get the product to the final user. These intermediaries, such as middlemen
(wholesalers, retailers, agents, and brokers), distributors, or financial intermediaries,
typically enter into longer-term commitments with the producer and make up what
is known as the marketing channel, or the channel of distribution. Manufacturers
use raw materials to produce finished products, which in turn may be sent directly
to the retailer, or, less often, to the consumer.
Channels of distribution tend to be more directthat is, shorter and simplerin the
less industrialized nations than in industrialized countries which have more complex
or indirect channels of distribution.
So the managerial decision would be easier to make in an underdeveloped country
like Ruanda where channel of distribution are considered simple and shorter than in
the United States where the channels of distribution are considered complex and
harsh.