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DRIVE - SUMMER 2014
PROGRAM/SEMESTER- MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2
(SEM 4) PGDMMN (SEM 2)
SUBJECT CODE & NAME- MK0018– International
Marketing
Q.NO.1 Discuss the different management
orientations of a company. How does it affect international marketing?
(Management orientations-6, Effect on international
marketing-4) 10 marks
ANS:
Management
orientations
The form and
substance of a company’s response to global business opportunities depend
greatly on management’s assumptions or beliefs –both conscious and unconscious
– about the nature of the world. The worldview of a company’s personnel can be
described as ethnocentric, polycentric, regiocentric, and geocentric.
Management at a company with a prevailing ethnocentric orientation may
consciously
Q.NO.2. It is very important to analyze the
politico-legal environment of a country in international business. Comment.
(Discuss the statement) 10 marks
ANS:
Importance
to analyze the politico-legal environment of a country in international
business
The legal/political aspect is very important in
global marketing. Getting acquainted
with how politics and law affect business activities around the world is a
critical concern of today’s successful global organizations. Especially in the
past ten years, there have been substantial political changes around the world
that have shaped business operations. New markets have opened, old ones have
closed, and the level of uncertainty that exists presents many marketing
challenges. A country’s political system
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Q.NO.3 Compare GATT and WTO and discuss the
implications of WTO on international
marketing.
(Comparison-5, Implications of WTO-5) 10 marks
ANS:
Comparison between GATT and WTO:
General
Agreement on Tariffs and Trade (GATT): GATT is a multilateral
treaty among the member countries that lays down certain agreed rules
for conducting international trade. The member countries contribute
together to four-fifth of the total world trade. It is interesting to
note that underdeveloped countries form a sizable majority in GATT. The
basic aim of GATT is to liberalise world trade
Q.NO.4 Nestle is marketing bottled water to
Pakistan. Which segmentation it adopts there and what are the other
international market segmentations? (NestlĂ©’s segmentation, Bases of segmentation) 3, 7
ANS:
Nestle’s
segmentation
Consumers can be categorized in terms of usage rates –
for example, heavy, medium, light, and nonuser. Consumers can also be segmented
according to user status: potential users, nonusers, ex-users, regulars,
first-timers, and users of competitors‟ products. Although bottled water may be
considered a luxury product in some high-income markets, Nestle is marketing
bottled water in Pakistan where there is a huge market of nonusers who, despite
their low income, are willing to pay 18 rupees a bottle for clean water because
of the widespread presence of arsenic poisoning in well water and the pollution
of surface water. Tobacco companies are targeting China because the Chinese are
heavy smokers.
Q.NO.5 Write short notes on:
a) International packaging
b) International logistics planning
(International packaging-5, International
logistics planning-5) 10 marks
ANS:
a) International packaging: Packaging
has assumed an important function for the preservation of the goods as well as
for the reduction of cost of the products. It may be viewed as consisting of
two distinct types: (i) industrial (exterior) and (ii) consumer (inferior).
Consumer packaging is designed for the purpose of affecting sales acceptance.
The aim of industrial packaging is to prepare and protect merchandise for
shipment and storage Packing is even more critical for overseas shipment than
for
Q.NO.6 Select a product of your choice for export
and explain how you will do the pricing and costing of that product.
(Choosing
the product-2, Export pricing and costing-8) 10 marks
ANS:
Choosing
the product: Before breaking into the foreign
market, marketers must consider factors that influence product adoption. As
explained by Diffusion Theory at least six factors have a bearing on the
adoption process: relative advantage, compatibility, trialability/divisibility,
observability, complexity and price. These factors are all perceptual and thus
subjective in nature. For a product to gain acceptance it must demonstrate its
relative advantage over existing alternatives. A product must also be
compatible
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