TUTORIAL 12:
Exploring & Adapting Direct & Interactive Marketing Strategies Around the World
CLASS ACTIVITIES:
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Revise Topic 12
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Tutorial questions

Case Discussion Questions
Learning outcome
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Understand the unique differences between domestic and foreign markets for direct
marketers
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Be familiar with the steps that should be followed when entering a foreign market
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Be able to overview of the common modes of market entry including direct exporting,
licensing, joint venture, contract manufacturing and direct investment

Understand the unique infrastructure needed to support direct marketing operations in foreign
countries including lists and database, fulfillment operations, media and creative

Discuss some of the challenges and opportunities in direct marketing within the country
markets of Canada, Europe, Latin America, Asia, and Africa
Tutorial questions
1. Describe the different modes of market entry that can be used to enter a foreign
market.
The different modes of market entry that can be used to enter a foreign market include:
a. Exporting is when a company sells its products from its home base without maintaining
any of its own personnel overseas.
b. Licensing can be described as a local business in an international country becoming
authorized to manufacture or sell specific brand products for another company.
c. Joint venturing is created when two or more investors join forces to conduct a business
by sharing ownership and control.
d. Contract manufacturing enables companies to take advantage of lower labor costs and
faster market entry, while avoiding local ownership problems, and satisfying legal
requirements that the product must be manufactured locally in order for it to be sold in
that country.
e. Direct investment is a company that acquires an existing foreign company or forms a
completely new company in the foreign country.
f. Management contracting takes local business people or their government and signs a
contract to manage the foreign business in their country’s market.
2. What makes international direct marketing different from domestic direct marketing?
International direct marketing and domestic direct marketing are different due to market
uncertainty. The uncertainties of foreign business environments through infrastructure,
technology, competitive dynamics, legal and governmental restrictions, customer
preferences, and culture are those variables, which can differentiate international direct
marketing from domestic direct marketing.
3. Discuss the primary infrastructure necessary for international direct marketing
activities to be carried out with success.
The primary infrastructure necessary for international direct marketing activities to be carried
out with success include banking and credit card systems, list availability, quality postal
service, average postage costs, internal or external databases, inbound or outbound
telemarketing availability, response channel opportunities, and more (as presented in Figure
12-3.)
4. Name some of the ways direct marketers have adapted to cultural differences when
marketing internationally.
Direct marketers have adapted to cultural differences when marketing internationally in a
variety of ways. Careful market research, including an assessment of consumer needs,
political, economic and business environment and direct marketing infrastructure, is
necessary prior to commencing international direct marketing activities. One example of
cultural adaptation is how Coca-Cola modified its brand name in Japan. Japanese women
viewed the term “diet” in a negative manner. Therefore, since Coca-Cola did not want to
lose the business of the Japanese, they created a new brand name for Diet Coke—“Coca-Cola
Light” and found that this new name projected a more favorable impression to Japanese
consumers. To Japanese consumers the word “light” meant maintain the weight instead of
weight loss. Cultural differences are important to research because what one word means
domestically, might be hurtful or discriminating internationally.
5. Discuss fulfillment operations. What advantages do both centralized and decentralized
fulfillment operations offer international direct marketers?
Fulfillment operations include distribution of product, payment options, and customer
service. The distribution of the product is essential and must be organized effectively and
efficiently. The options of distribution are from a centralized (home location) or from a
decentralized location like an overseas distribution center. Fulfillment operations include
payment options, which can be different for any country. For example, credit cards are a
highly used payment method in the United States compared with other countries. Customer
service is key to any efficient fulfillment operations. Return policies and toll free number
must be easy for the customer to handle with little complaints.
There are advantages to both centralized and decentralized fulfillment operations for
international direct marketers. Centralized locations are usually easier for the consumer to
know how to get in touch with the company if there are any inquiries or concerns than are
decentralized fulfillment center locations. However, a decentralized fulfillment operation
might offer other benefits such as lower cost handling orders for the company than most
centralized fulfillment operations.
Case Discussion Questions: Globalising an American Catalog - The Peruvian Connection
(Textbook p.343 – 345)
1. What economic, social and cultural differences does the Peruvian Connection need to
consider as it applies the tools and techniques of direct marketing to diverse
international markets?
The Peruvian Connection needs to consider economic, social and cultural differences when it
applies the tools and techniques of direct marketing to diverse international markets. Diverse
markets may call for different fulfillment methods and different payment options. Germans
prefer open-billing accounts, so foreign funds are handled in a different manner than
consumers in the United States who are more familiar with and have a higher level of
comfort with credit cards. Another difference is pricing for those countries that have a higher
standard of living than others. The layout of the catalog may need to be different for each
country in order to customize to the needs and wants of the individual or country as a whole.
And finally, language differences must be observed and taken into consideration when
writing the catalog copy.
2. What are the main factors that led to the international success of the Peruvian
Connection?
The main factors that led to the international success of the Peruvian Connection included
profiling the customer, segmenting the market when prospecting for new customers, using
appropriate lists and understanding the value of each customer. High quality products, fair
prices and developing effective promotional strategies also played a key role in developing
and maintaining her customers.
3. If you were hired by the Peruvian Connection to expand its international direct
marketing efforts, what additional information would you need in order to provide
suggestions for market expansion? What are some of the avenues you might investigate
and recommend for international market expansion?
Students may go off in many different directions when answering this question. They may
discuss test marketing activities or the need to conduct further research on the consumers
and/or consumer segments.
For additional market expansion, students may suggest investigating consumer demographic
profiles in greater detail to identify target markets and create a clearer understanding of what
market segment Peruvian Connection should attempt to attract. Market analysis should
extend not only to the countries within which she already has entered, but also untapped
markets. For example, determining the climate may help in taking her apparel line and
customizing it for each country.