Hosur Road (1Km before Electronic City), Bangalore -560100
Course: MBA Semester IV
Faculty: Mr.Nagabhushana
– 12MBAMM418
Time Allowed: 90 Minutes
Max. Marks: 50 (Fifty Marks)
Time: 11.30 AM – 1.00 PM
Answer all the Questions.
What is the difference between licensing and franchising?
Under international licensing, a firm in one country(the licensor) permits a firm in
another country(the licensee) to use its intellectual property(such as patents, trademarks,
copy rights, technology, technical know-how, marketing skill or some other specific
skill). The monetary benefit to the lincensor is the royalty or fees which licensee pays.
Franchising is a form of licensing in which a parent company (the franchiser) grants
another independent entity (the Franchisee) the right to do business in a prescribed
manner. This right can take the form of selling the Franchiser’s products, “using its
name, production and marketing techniques, or general business approaches”. One of the
common forms of franchising involves the franchisor supplying an important ingredient
(part, material etc.,) for the finished product, like Coca Cola supplying the syrup to the
bottlers. The major forms of franchising are manufacturer-retailer systems (such as
automobile dealership), manufacturer-wholesaler systems (such as soft drink companies),
and services firm-retailers systems (such as lodging services and fast food outlets)
(3 marks)
What are the factors that favour product standardization in international marketing?
Reasons for Product Standardization
• Economies of scale : Production, R&D, Marketing
Common Consumer needs : Drinking patterns, car sizes
Consumer Mobility: Customer retention & Loyalty
American Express, Kodak, ...
Home Country Image:US jeans, French Perfumes...
Impact of technology :
(7 marks)
B to B Markets
What are the criteria for classifying world markets?
Major types of segmentation used are discussed below:
1) Geographic Segmentation
2) Demographic Segmentation
3) Country Segmentation on the Basis of Income
4) Segmentation of Indian Market on the basis of household Income
5) Segmentation of Markets on the Basis of Age
6) Psychographic Segmentation
7) Psychographic segmentation of Indian Youth.
8) Segmentation of International Markets on the Basis of core Values
9) Segmentation on the Basis of International Marketing Opportunity
10) Segmentation on the Basis of Market Attractiveness
(10 marks)
Identifying Foreign Markets
1)Classification on the basis of stages of demand: Keegan has produced
threefold classification of world markets
Existing markets: Customer needs are known and already being serviced by
some products
Latent Markets: Have potential but not been served by any companies
Incipient Markets: Do not exist need to be created
2) Classification on the basis of stages of development
Industrial Economies: Like US., UK., France, Germany
More developed developing countries: Brazil, Hong kong, India
Raw material Exporting Economies: Gulf, African, and Latin American
Subsistence Economies: Afghanistan, Sudan
What is multiculture research?
Multicultural Research involves dealing with countries that have different languages,
economies, social structures, behavior, and attitude patterns. When designing
multicultural studies, it is essential that these differences be taken into account. An
important point to keep in mind when designing research to be applied across cultures is
to ensure comparability and equivalency of results. Different methods may have varying
reliabilities in different countries. It is essential that these differences be considered in
the design of a multicultural survey. Such differences may mean that different research
methods should be applied in individual countries.
What are the three major components of a product? Discuss their importance in product
(3 marks)
(7 marks)
What is a consortia? What are its uses?
Consortia: Consortia are similar to joint ventures and could be classified as such except
for two unique characteristics: 1) they typically involve a large number of participants,
and they frequently operate in a country or market in which none of the participants is
currently active. Consortia are developed to pool financial and managerial resources and
to lesson risks. Airbus is one such example. Airbus industrie was originally formed when
four major Europen aerospace firms agreed to work together to build commercial
(10 marks)
(10 marks)
Case Study:-
Marks: 2*5=10
Assume that you are restaurant chain operating in south India and you want to go global.
1) How are going to select the countries to enter? What kind of segment you are
going to target?
2) Bring out marketing strategies to the specific country and segment you are
Key: International market classification, product standardization concepts need to be
applied here.