THE OPEN UNIVERSITY OF TANZANIA
FACULTY OF BUSINESS MANAGEMENT
OME 322: INTERNATIONAL MARKETING
COURSE OUTLINE
COURSE OBJECTIVES
This course is designed to impart basic knowledge and analytical skills necessary to
diagnose and understand important aspects related to marketing of products and services
in the foreign markets. It exposes students to the specific issues regarding international
markets including the underlying theories that explain the existence of foreign markets.
COURSE CONTENT
1.0 LECTURE ONE: THE NATURE AND SCOPE OF INTERNATIONAL
MARKETING
1.1 Lecture Overview
International marketing refers to finding out what customers want around the world and
then satisfying these wants better than other competitors, both domestic and international.
It is simply the practice of all marketing activities at home, plus the efforts to execute
marketing functions in across the boundary.
1.2 Key Learning Objectives
Upon Completion of this lecture you should be able to:
•
Define International Marketing
•
Explain the roles and importance of international marketing involvement
•
Differentiate between international marketing and domestic marketing
•
Explain the tasks of international marketers
•
Analyze the factors that influence international marketing decisions
1.3 Sub topics
•
Definition of International Marketing
•
The role and importance of International Marketing
•
International marketing environment vs. domestic environment
•
Task of the international marketer
•
Factors influencing international marketing decisions
2.0 LECTURE TWO: INTERNATIONAL MARKETING INVOLVEMENT
2.1 Lecture Overview
Companies engage in international marketing for a variety of reasons, but the goal is
typically company growth or expansion. Whether a company hires international
employees or searches for new markets abroad, an international strategy can help
diversify and expand a business.
2.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Differentiate between the phases of international marketing
involvement
•
Differentiate between direct and indirect exporting
•
Explain the advantages and disadvantages of various foreign
market entry strategies
•
Clarify the role of Multi-National Corporations (MNC’s)
2.3 Sub topic
•
Phases/levels of international marketing involvement
•
Exporting
Direct Exporting
Indirect Exporting
•
Importing
•
Licensing
•
Franchising
•
Joint ventures
•
Strategic Alliances
•
Foreign Direct Investment
•
Contract Manufacturing
•
Multi-national corporations
3.0 LECTURE THREE: INTERNATIONAL TRADE, CONCEPTS AND
INSTITUTIONS
3.1 Lecture Overview
Since each nation is sovereign in determining its own commercial policy, the danger is
that arbitrary national actions will minimize international trade. For this reason, you will
examine the existence of global institutions that regulate and oversee international trade.
3.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Define international trade
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•
•
•
Explain the gains from and limitations of international trade
Explain the concept of balance of payment and balance of trade
Describe the role played by various global institutions in
international trade
3.3 Sub topics
•
Definition of International trade
•
Gains from and limitations of international trade
•
Balance of Payments and Balance of Trade
•
GATT
•
The World Trade Organization
•
The United Nations Conference on Trade and Development
•
The International Trade Centre
•
The International Monetary Fund
•
The World Bank
4.0 LECTURE FOUR: INTERNATIONAL TRADE THEORIES
4.1 Lecture Overview
In domestic marketing; much emphasis is laid on the analysis of buyer behavior and
motivation. For the international marketer, knowledge of the basic causes and nature of
international trade is important. International trade theories seek to answer a few basic
questions as to why do nations trade and what type of goods do they trade.
4.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
State and illustrate the international trade theories
•
Explain the underlying assumptions of each of the trade theories
•
Make clear differences between the theories
•
State the implications of international trade theories to the
international marketer
4.3 Sub topics
•
Mercantilism theory
•
The Absolute Advantage Theory
•
The theory of comparative advantage
•
Heckscher-Ohlin Factor endowment Theory
•
The Product life cycle theory
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5.0 LECTURE FIVE: MARKET PROTECTION
5.1 Lecture Overview
Market protection is the economic policy of restraining trade between countries, through
methods such as tariffs on imported goods, restrictive quotas, and a variety of other
regulations designed to discourage imports, and prevent foreign take-over of domestic
markets and companies. This policy is closely aligned with anti-globalization, and
contrasts with free trade, where government barriers to trade and movement of capital are
kept to a minimum.
5.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Explain the meaning of market protection
•
Mention and discuss various types of tariffs and non tariff barriers
•
Discuss the impact of tariff, non tariff barriers and Quotas on
international marketing activities
•
State the rationale for and market protection
5.3 Sub topics
• Introduction to market protection
• Tariff barriers
• Non tariff barriers
• Quotas
• The rationale for market protection
6.0 LECTURE SIX: ECONOMIC INTEGRATIONS
6.1 Lecture Overview
For a variety of reasons it often makes sense for a group of nations to harmonize their
economic policies. Harmonization can generate benefits that are not possible otherwise.
Any type of arrangement in which countries agree to harmonize their trade, fiscal, and/or
monetary policies is referred to as economic integration. The coordination so formed
turns out to be a single larger market whose economic environment closely resembles
that of a single nation.
6.2 Learning objectives
Upon Completion of this lecture you should be able to:
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•
Define economic integration
•
Describe the types of economic integration
•
Explain the factors influencing successful economic integration
•
Explain the implications of economic integration to the
international marketers
6.3 Sub topics
•
Meaning of Economic integration
•
Types/levels of economic integration
•
Factors influencing successful economic integration
•
Implications of Economic Integration to the international
Marketers
7.0 LECTURE SEVEN: ANALYZING THE ECONOMIC ENVIRONMENT OF
FOREIGN MARKETS
7.1 Lecture Overview
Economic environment is an important factor, which regulates the scale of a market.
Information on it includes data on the economic conditions of markets, purchasers,
consumers, competitors in the markets, price levels, foreign currency conditions, tax
rates, trade trends, resources and investments. Among them, particularly important are
economic growth, GNP, gross earnings per capita, industrial and agricultural conditions,
saving and management of foreign currency, the saving bonds and international payments
in a region concerned.
7.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Articulate the importance of economic disparities when developing
marketing strategies.
•
Explain the meaning of economic growth
•
Explain the concept of Balance of payment
•
Explain the concept of Gross National Product
•
Describe the impact of income distribution on the marketing
activities
•
Explain the industry conditions that are favorable for the
international marketers
•
Explain the impact of foreign currency management on the
international marketing activities
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7.3 Sub topic
•
•
•
•
•
•
•
Nature of the economy
Economic growth
Balance of payments
Gross National Product
Income distribution
Industry conditions
Management of foreign currency
8.0 LECTURE EIGHT: ANALYSING THE SOCIO-CULTURAL
ENVIRONMENT OF FOREIGN MARKETS
8.1 Lecture Overview
Social and cultural environments mold people's ways of living and values, influencing
trade activities in terms of market demand. Export marketing attempts are frequently
unsuccessful because the marketer - either consciously or unconsciously - makes
decisions or evaluations from a frame of reference that is acceptable to his/her own
culture but unacceptable in a foreign environment. Therefore, business practices which
are successful in one group of countries may be entirely inappropriate in another group of
countries.
8.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Define culture
•
State the elements of culture
•
Articulate the importance of cultural disparities when developing
marketing strategies
•
Explain the impact of each of the cultural elements on the
international marketing activities
8.3 Sub topics
•
The meaning of culture
•
The elements of culture
•
Religious beliefs and groups
•
Technology and material culture
•
Language
•
Aesthetics
•
Education
•
Attitudes and values
•
Social organization
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9.0 LECTURE NINE: ANALYSING THE POLITICAL ENVIRONMENT OF
FOREIGN MARKETS
9.1 Lecture Overview
Political environment is a decisive factor for trade activities but the degree of state
intervention and interference in trade business differs. Therefore, in order to select a
foreign market, the political environment of a country concerned should be studied.
Information on political environments should include not only the present political
climate of a country but also prospects for its stability.
9.2 Learning objectives
Upon Completion of this lecture you should be able to:
• Mention and discuss the constituents of political environment
• Explain how the elements of political environment affect international
marketing activities.
9.3 Sub topics
•
Introduction to political environment
•
National Interests
•
National Controls
•
Home country political environment
•
International political environment
•
Political system
•
Activities of political parties
•
Labor movement
10.0 LECTURE TEN: ANALYZING THE LEGAL ENVIRONMENT OF
FOREIGN MARKETS
10.1 Lecture Overview
The legal environment of international marketing is complicated, having three
dimensions; the home country laws, international laws and the domestic laws in each of
the foreign markets. A firm must know the legal environment in each market because
these laws constitute the ‘rules of the game’.
10.2 Learning objectives
Upon Completion of this lecture you should be able to:
8.1.1 Mention and discuss the constituents of the legal environment
8.1.2 Explain how the elements of legal environment affect international
marketing involvement
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10.3
Sub topics
•
The international legal environment: An overview
•
Export controls
•
Legal systems
•
Foreign laws and the marketing mix
•
International laws and international marketing
•
Arbitration and litigation
11.0 LECTURE ELEVEN: INTERNATIONAL PRODUCT STRATEGIES AND
DECISIONS
11.1 Lecture Overview
It is in the interest of the international marketer to sell a product or products that will earn
the company enough profits. The marketer therefore must begin by planning well what to
sell abroad. He begins by asking himself several questions as to what international
product strategy should the company pursue?
11.2 Learning objectives
Upon completion of this lecture students should be able to;
• Mention and discus the international product strategies
•
State factors that influence choice of international product strategies
•
Explain how firms manage products and brands in the international
environment.
11.3
•
Sub topics
International Product: An overview
•
International product strategies
•
International product packaging, labeling, branding, trade marks, warranty
and after sale services
12.0 LECTURE TWELVE: INTERNATIONAL PRICING STRATEGIES AND
DECISIONS
12.1 Lecture Overview
Pricing policy is crucial in influencing the success and failure of company’s efforts. A
poorly set price can deprive the business of funds needed to do proper market
development and yield a return on its investment.
12.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Discuss various factors that affect international pricing policies
•
Mention and discuss the international pricing approaches
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12.3
Sub topics
•
International pricing policy: An overview
•
Factors affecting pricing policies in international marketing
•
International pricing approaches
13.0 LECTURE THIRTEEN: INTERNATIONAL DISTRIBUTION
STRATEGIES AND DECISIONS
13.1 Lecture Overview
Closing the gap between the producer and the consumer or user requires carrying out of a
number of distribution functions. The basic question is not whether these functions are to
be performed but rather; who to perform and whether he/she will perform it efficiently.
13.2
Learning Objectives
Upon Completion of this lecture you should be able to:
•
Describe the international distribution flows
•
Discuss the distribution functions
•
Explain the factors affecting international channel decisions
•
Narrate the international distribution alternatives
•
Discuss various international distribution policies
13.3
Sub topics
•
Introduction to international distribution flows
•
The distribution functions
•
Factors affecting international channel decisions
•
International Distribution alternatives
•
Determination of international Distribution Policy
14.0 LECTURE
FOURTEEN:
STRATEGIES AND DECISIONS
INTERNATIONAL
PROMOTION
14.1 Lecture Overview
Promotion is the most visible as well as the most culture-bound of the firm’s marketing
functions. With the promotional function, the firm is standing up and speaking out,
wanting to be seen and heard. Promotion is thus a communication by the firm with its
various audiences, with a view to informing and influencing them.
14.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Explain the importance of an appropriate promotion strategy when
entering new export markets
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•
Examine the promotion options available to the international
marketer
•
Outline the key points to note when designing a company
promotion and analyze the tools available when implementing a
promotion campaign
•
Explain why international marketing managers may wish to
standardize or adapt the promotion mix regionally or worldwide
•
Discus the advertising decisions facing the international marketer
•
Explore the ways in which personal selling varies in world markets
•
Discuss the impact of social responsibility in a host country’s
marketing activities
14.3
Sub topics
•
The international promotion function
•
International Promotion mix elements
•
Push oriented vs. Pull oriented promotion strategies
•
International personal selling
•
International advertising
•
International sales promotion
•
International Publicity
•
International trade fairs
15.0 LECTURE FIFTEEN: THE INTERNATIONAL COMMERCIAL TERMS
(INCOTERMS)
15.1
Lecture Overview
International Commercial Terms were developed in 1936 by the International Chamber
of Commerce (ICC) in Paris. They define the respective roles of the buyer and seller in
the agreement of transportation and other responsibilities and clarify when the ownership
of the merchandize takes place. These terms are incorporated into export-import sales
agreements and contracts worldwide and are a necessary part of foreign trade.
15.2
Learning objectives
Upon Completion of this lecture you should be able to:
• Explain the historical overview of international commercial terms
•
State the roles of the international commercial terms
•
Mention and discuss various international commercial terms
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•
15.3 Sub topics
Historical overview of International commercial terms
•
The roles of the international commercial terms
•
The 13 international commercial terms
16.0
LECTURE SIXTEEN: INTERNATIONAL TRADE DOCUMENTATION
16.1 Lecture Overview
Export documentation is a tedious but necessary process that all exporters must pay close
attention to, as documentation requirements vary considerably by country, commodity,
and situation. Export documents are the key to international trade, and have been used for
thousands of years. Documents outline the sale, shipment, and responsibilities of each
party so that the full transaction is understood and complete without delay or additional
costs as well as ensuring compliance with applicable regulations.
16.2
Learning objectives
Upon Completion of this lecture you should be able to:
16.3
17.0
•
Identify and discuss various documents used in international trade
•
Discuss the importance of export documentation
Sub topics
•
Commercial invoices
•
Bill of Lading
•
Country specific documents
•
Certificates of origin
•
Consular documents
•
Pre-shipment inspection certificate
•
Export licenses
LECTURE SEVENTEEN: THE FOREIGN EXCHANGE MARKET
17.1 Lecture Overview
The foreign exchange market is the organizational framework within which individuals,
firms and banks buy and sell foreign currencies. The primary purpose of the foreign
exchange market is to assist international trade and investment, by allowing businesses to
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convert one currency to another currency. These transactions involve various
technicalities that are of paramount importance to the international marketer.
17.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Define foreign exchange market
•
Explain how foreign exchange rate is determined
•
Explain the concepts of hedging, speculation and arbitrage
•
Differentiate between flexible and fixed exchange rate systems
•
Distinguish between spot, futures and forward markets
•
Explain the concept of exchange control
17.3
18.0
Sub topics
•
Definition of foreign exchange market
•
The foreign exchange rate
•
The equilibrium foreign exchange rate
•
Hedging
•
Covered interest arbitrage
•
Speculation
•
Flexible vs. Fixed exchange rate system
•
Types of foreign Exchange markets
Spot market
Futures market
Forward market
•
Exchange control
LECTURE EIGHTEEN: FINANCING INTERNATIONAL OPERATIONS
18.1 Lecture Overview
Financing international operations constitute a complex area in the international
transactions as they bear risks and legal implications to both the exporter and importer.
Thus it is important that the international marketers be acquainted with the procedures
and technicalities that are involved in international financing and risks involved thereof.
18.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Describe various international payment procedures
•
Distinguish between letter of credit, bills of exchange and
documentary collection
•
Explain the types of financial risks that are involved in
international marketing
•
Explain the concept of countertrade
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18.3
Sub topics
•
Payment Procedures in international operations
Cash in Advance
Letter of Credit
Documentary Collection
Bills of Exchange
Consignment
Open Account
Countertrade
•
Financial risks involved in international marketing
19.0 LECTURE NINETEEN: EXPORT SUPPORT SERVICES AVAILABLE IN
TANZANIA
19.1 Lecture Overview
As a way of boosting economic performance, different countries engage in activities that
will boost exports both in terms of quality and quantity. Tanzania being among those
countries has established various institutions and schemes that work to nourish the
country’s export performance. This support takes different forms.
19.2
Learning objectives
Upon Completion of this lecture you should be able to:
•
Discuss the problems facing exporters from the least developed
countries
•
Explain the meaning of export processing zones and their role in
promoting international marketing
•
Discuss the functions of The Tanzania Trade Authority (TANTRADE)
•
Explain the meaning, type and functions of Export Guarantee
Schemes available in Tanzania
19.3
Sub topics
•
Problems facing Exporters from the Least Developed Countries
•
Export Processing Zones
•
Tanzania Trade Authority (TAN-TRADE)
•
Export Guarantee Schemes
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20.0 LECTURE TWENTY: INTERNATIONAL MARKETING
INFORMATION SYSTEMS
20.1 Lecture Overview
International marketing information systems are structured interacting procedures
designed to generate an orderly flow of pertinent information collected from both internal
and external sources for use as basis for decision making.
20.2 Learning objectives
Upon Completion of this lecture you should be able to:
•
Discuss the components of international marketing information
systems
•
Explain the types of marketing information
•
Discuss the role of international marketing research
•
Narrate the steps involved in planning international marketing
research
•
Explain the steps involved in evaluation of marketing information
20.3
Sub topics
•
The components of international marketing information systems
•
Types of marketing information
•
The role International marketing research
•
Steps in planning international marketing research
•
Evaluation of marketing information
Course Evaluation:
One Main Test
Final Examination
Total
30%
70%
100.0%
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Recommended Readings:
Cateora, P. R., and Graham, J. L. (2005) International Marketing. 12th Ed. McGraw-Hill
Irwin
Ghauri P. and Cateora P., (2006), ‘International Marketing’ (2nd Edition), London:
McGraw-Hill
Gerald, A., and Edwin, D. (2008). International Marketing and Export Management, 6th
Ed, Prentice Hall, UK.
Hollensen S. (2007), ‘Global Marketing’ 4th edition, Prentice Hall.
Kotler P. (1984) Marketing Management: Analysis, Planning and Control, 4th Ed.
Prentice Hall, New Jersey
Terpstar V. and Sarathy R. (1990) International Marketing, 5th Ed, Saunders College
Publishing, Hinsdale
Warrant J. (1974) Multinational Marketing Management, Prentice – Hall Inc. Englewood
Cliffs, New Jersey
Wineaster Anderson (2004), Manual on International Marketing, University of Dar es
Salaam.
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