Part A
1. Why international marketing is more complex than domestic marketing?
The main differences between domestic marketing and international marketing is PEST-External environment and CCC-Culture consumer corporations
Political factors
Economical factors
Social-culture factors
Technology factors
Global factors
Democracy
“CCC”
Consumer
Corporation
Cultural

The key element in international environment is stabilities and changeable factors, the main differences could be considered as the differences in “PEST” analysis and the concept of “CCC”. Investor choose foreign country to invest should consider stability of nation, also the quota and so on, national currency is also an important factor to affect investment, technology standard is also different in each country, like all the product need to pass the ISO, different countries have different culture tradition, so companies must redirect their strategies for those factors to suit the new unstable environment.

2. Since it is located in the southern hemisphere Chile’s strong fruit growing industry has a country specific advantage of counter seasonal harvesting relative to many northern hemisphere markets.
a. What entry mode would seem most suitable for Chile in entering the northern hemisphere markets? Justify your answer. (5 marks)
b. Why would the other entry modes be ineffective? (5 marks)L10
Entry strategies is one of most important steps for corporations international expansion, it consist four elements, exporting, contractual agreement, strategic alliances and ownership. In this case, exporting should be suitable for this company, first of all, the company will gain comparative advantages base on the different seasonal changes in southern and northern hemisphere,
Exporting
Contractual agreement
Strategic alliance
Ownership
3. Country of original effect market p386 L12
Ethnocentrism
Countries stereotyped on the basis of whether they are industrialised, in the process of industrialising, or developing. E.g. English tea, French perfume, Chinese silk
Country-of-origin effect (COE) can be defined as any influence that the country of manufacture, assembly or design has on a consumer’s positive or negative perception of a product.
Fads often surround product from particular countries or regions.
Poor country image can be compensated for by lower prices, longer warranties or selling through high quality retailer.
COE and it underlying country image operate at a direct level to affect consumer decision-making.
‘Country brand’ enhancing strategies
4. Agent and distributers 讨论
Difference between them is ownership
Agent doesn’t own the product
Agent is just the middlemen
Distributers lack the knowledge of product
Agent pays the commission of the product
Agent has more control by original company
Distributer need higher margin
5. Bottom of pyramid market (BOPM) “Countries with large population s and/or low per capita income, such as less developed countries (LDC), are unattractive and of little interest to international marketing organisations from industrialised countries’. Discuss, and use example(s) where necessary to assist your explanation.
Bottom of pyramid