Assignment: International Marketing Management

International Marketing
Management

Table of Contents
ABSTRACT ....................................................................................................................................3
INTRODUCTION...........................................................................................................................1
Question 1. Critically analyse the extent that Apple Inc. global brand’s marketing mix is
standardised and/or adapted across international markets...............................................................1
Question 2. Internationalisation Process Theory (IPT)....................................................................6
Question 3. Analyse the extent that you believe Country of origin effect (COO) influences
consumer perception........................................................................................................................9
CONCLUSION..............................................................................................................................11
.............................................................................................................................................11
REFERENCES..............................................................................................................................12

ABSTRACT
International marketing is simply the applications of marketing principles to more than
one country. In simple term it is defined as the exchange of good and services between different
national market including buyers and sellers. International marketing and global marketing is
similar term. The marketing mix is the combination of elements that can be controlled by a
company to influence consumers to purchase its goods and services. It is set of action that is
utilized by company to promote its brand in the global market. Apple Inc. consists of seven
elements product, price, place, promotion, people and physical evidence. The process of 7P's of
marketing mix is never ending process as it used continuously in measuring and evaluating
various activities. Rather than 7P's of marketing mix company can also use some other theories
of marketing mix like 4C's of marketing. It is the modern version of marketing mix of 4P's. It is
another tool that should take benefits of a marketer of internet. It is also the best tool of
marketing. In 7P's of marketing mix, the main element that is the backbone of business is
missing which is consumer. 4C's of marketing mix theory help company to think over their
interest of customers. International process theory is the process when company tends to invest
and expand in countries with a short psychic distance to the home country. The most essential
theme in this theory is the role of organizational knowledge in the internationalization process.
The international theory is relevant for the history of international theory. The Eclectic Paradigm
Theory is the best theory for Apple Inc. as it is helps company in making decision regarding
foreign direct investment. Apple Inc. has its patent rights on its software. Thus, Eclectic
Paradigm is the best model which Apple Inc. can use in its operations and functions. Country of
origin refers to the country where the product is been manufactured or produced or from where
the goods are departed or shipped. It is also known as place based branding. Country of origin
effects on how consumers perceive products manufactured or produced in a particular country.
Here the products from Apple Inc. which is a California, US based company.

INTRODUCTION
1

INTRODUCTION
International marketing is simply the application of marketing principles to more than
one country. In simple terms, it is defined as the exchange of goods and services between
different national markets including buyers and sellers. International marketing and global
marketing are similar terms. In order to satisfy various demands and needs of different people
living in different countries, applications of marketing mix is used. It is based on the strategy
created in home country of company and distributed to its other offices/affiliations. The
management of international marketing is the key factor in achieving goals and objectives of
company as without managing, no company can get success (Mathur, 2017).
In this context, Apple Inc. Company is chosen for assessment. It is a multinational
technology firm and a recognized brand in the world. It was found on 1st April 1976 by three
people which are Steve Jobs, Steve Wozniak and Ronald Wayne. About 123000 employees are
working in Apple Inc. and its revenue is about US$ 229.234 billion in 2017. This report will
include global brand’s marketing mix of Apple Inc. Further, internationalisation Process Theory
(IPT) will also be discussed in this report. Moreover, factors that influence consumer perception
will be studied.
Q1. Critically analysing the extent that Apple Inc. global brand’s marketing mix is standardised
and/or adapted across international markets
Marketing mix is the combination of elements that can be controlled by a company to
influence consumers to purchase its goods and services. It is a set of actions that is utilized by
company to promote its brand in the global market. Apple Inc. consists of seven elements i.e.
product, price, place, promotion, people, process and physical evidence. It refers to right
placement at right time at right price. Apple Inc. is clearly an example of great success in this
field. In previous time, there are four elements in marketing mix which are price, product,
promotion and place but with the advancement of time, it is developed to more elements to 7P's.
The theory of marketing mix is very useful for Apple Inc. to increase sales and revenue of
company. The process of 7P's of marketing mix is never ending process as it is used
continuously in measuring and evaluating various activities (Kotabe and Helsen, 2014). There
are some difficult parts as the marketing management of Apple Inc. has to focus on every aspect

of business plans. Apple Inc. is a recognized global brand in the world which is only due to great
efforts of marketing.
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Product – Product is worked to address the issues of the general population. Apple Inc.
guarantee to the correct kind of ware that is interest for the market. The Product can be in two
structures substantial and impalpable. Apple Inc. manufactures, design and sell technological
devices such as I phone, I pad, Mac desktop, portable personal computers and iPod digital music
player. Apple Inc. offering product according to customer's needs and demands. It is very
important to be satisfy the consumer (Papadopoulos and Heslop, 2014). The organization
concentrating on assembling of product which is critical for their customers. This helps the
business in expanding profitability. Product of Apple Inc. are made that is indicated by the
customer’s request. It additionally investigates the worldwide market based on buyer needs.
Product helps in upscale the commercial centre for the business. The product of Apple is known
for its high quality and durability. Beside this, the range of its product is limited to some extent
like it is not available in all colours and size. Its unique system of hardware can only be used
with product of company itself.
Place-Place incorporates the place from where the Product has been sold or distributed. It
is exceptionally fundamental that customers can without much of efforts find the products place
of organization. The customers are happy with the place of Apple Inc. Addition to this,
organization likewise have its quality in web based showcasing which is additionally the best
element of organization and it will be very helpful for customers who shop more on online
systems. There are some sales channels of Apple Inc. like
Apple Store- It is the world biggest IT Company with the revenue operated 499 retail
stores in 22 countries. The place of Apple Inc. is creatively designed which attract many
customers to give their services.
Online Store- It has its presence on online networks which become easy for customers to
buy.
Direct Sales force- Apple Inc. uses direct sales force in some markets to boost and sell
the products.
Wholesalers- The partners of Apple Inc. with many wholesalers to distribute the
substantial part of its products and services.
Retailer- Apple Inc. is also had some local retailers such as Care phone Warehouse and
Argos in London and many other too (Hakansson, 2015).
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Price- This is the most critical element in the marketing mix as customers are very
sensitive towards the price of the product. Pricing of work and services gave by Apple Inc. is
harder than estimating the price of product. By raising the cost of the merchandise may lose a
customer maintenance. The Apple Inc. concentrating on powerful evaluating on their products.
In the worldwide market the organization need to bring down their costs as per the customer and
market supply. In the present time purchaser request bring down cost and prevalent quality
products. Cost assumes basic part for the business and it helps in the financial development for
the business. Apple Inc. follows price skimming technique as they use the strategy of putting the
highest price. For example, the price of I phone X has been US$ 999, the cost of brand watch is
almost US$ 400. The products of Apple Inc. is the most expensive product in the world.
Promotion – It helps in the offers of the products and enterprises. Promotion encourages
buyer to enlighten them regarding the products. Showcasing, publicizing causes in to advance
their merchandise in the market. Promotion encourages the organization in to separate their
merchandise and products from their rivals. It encourages organization to make a brand image
and generosity in the market. Promotion causes in to pick up buyer's consideration and offering
one of a kind services and products. The promotional techniques and tools of Apple Inc. is
unique. It attracts consumer towards the products of Apple Inc (The 7P's of Marketing, 2017).
People- Steve Jobs is one of the famous entrepreneur, he is master mind behind Apple
and develop and iconic identity in the world. Bill Gates has Windows, Steve Jobs has Apple and
now Tim Cook. These are the key people of Apple Inc. These are the strength of company. Such
as visible figure of Apple Inc. is one of the recognized figure in the world as it won’t have by
other brands. In the eye of public, Apple has excellent CEO.
Process-In this factor of showcasing mixture as it includes the whole procedure of
conveying the product to customers. It is vital that Apple Inc. ought to have efficient procedure
of conveyance of its products to end users. Apple Inc. has outstanding procedure of conveyance
of products as they generally ensure that same quality and standard of products which is very
necessary to provide to customers. Apple Inc. has blue print of administrations which gives the
detailed information of delivery of products. Within this process, there should be distinct areas
where a preference and taste of customers can be accommodated to provide a unique experience.
Physical Evidence-Physical evidence incorporates area of the conveyance of
administrations assumes a critical part. It is likewise very essential that organization ought to
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have the best and comfort as well as attracting locations. The administration area of Apple Inc.
is very agreeable, comfortable and secure as customers feel safe and secure in taking services
from organization. Administration is impalpable which can't be seen however it can be feel and
lays an incredible effect on the psyche of customer, so it is fundamental to have the best
customer services (Morschett, Schramm-Klein and Zentes, 2015).
The marketing mix of Apple Inc. demonstrated that how international company develop
to meet the trends of market while intrinsic projecting to one of its key values of creating
brilliant products that focus on simplicity.
Form all above 7P's of marketing, mic company can also use some other theories of
marketing mix like 4C's of marketing. It is the modern version of marketing mix of 4P's. It is
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Illustration 1: 7P's of marketing mix
(Source: 7P's of marketing mix, 2017)

another tool that should take benefits of a marketer of internet. It is also the best tool of
marketing. In 7P's of marketing mix, the main element that is the backbone of business is
missing which is consumer. 4C's of marketing mix theory help company to think over their
interest of customers. The marketing mix of 7P's of marketing is business oriented theory but
4C's of marketing is customer oriented theory. Its vision and mission is totally on customers of
company. There are four elements in 4C's of marketing such as customer, cost, communication
and convenience. Apple Inc. can also use this theory of marketing and should provide products
and services as per the needs and demand of customers. It requires market research (Vellas,
2016).
Here are the factors of 4C's of marketing mix as describe below-
Customers- According to the 4C's of marketing, the products that are produced by
company should satisfy the needs and wants of customers. Company should go for market
research. In order to create value to customers, it required efforts on attracting customer towards
their products. Customer is the main vehicle of marketing in Software Company. Apple Inc.
opens up all the doors of market by providing the products according to the needs and desire of
customers. There are some tactics which helps in creating more value to customers like company
should unify its goals by generating income by delivering high value to their customers. Apple
Inc. become success by making effective relationship with their customers (The 4C's of
Marketing Mix, 2017).
Cost- This is also the most essential part in 4C's of marketing. Price is the small part of
the total cost. Consumers are very price sensitive as it should satisfy the needs and wants of
customers. The entire cost of ownership reflects cost, it represents what consumers pay for the
particular products. It is the major element that decide whether to purchase or avail the product.
Price of the product is also depends on the type of market on targeting to capture. The cost of
Apple Inc. is very high as they provide high quality of product to customers. They follow the
strategy of price skimming. Apple Inc. target its customer belongs to A-B crowd.
Communication- Communication is also the most essential factor in 4C's of marketing.
According to this theory, the product of company cannot be promoted if it is communicated to
customers. In order to promote the product to customers Apple Inc. make effective relationship
with customers. Personal communication are more effective than other type of communication.
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Apple Inc. uses search engine and user friendly to reach the maximum audience (Samiee,
Chabowski, and Hult, 2015).
Convenience- This is the last element in 4C's of marketing as it is very important that
product of company should able to reach to maximum customers. Customers aren't limited to just
few places, they are scatter in different region. Customers of Apple Inc. are not bound to buy
products and services from physical location.
Question 2. Internationalisation Process Theory (IPT).
International process theory is the process when company tends to invest and expand in
countries with a short psychic distance to the home country. The most essential theme in this
theory is the role of organizational knowledge in the internationalization process. The internation
theory is relevant for the history of international theory. In economics, increasing the
involvement of companies in international market is the process of internationalization. In
sociology, internalization means a person's acceptance of a set of values and norms.
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Illustration 2: 4C's of marketing mix
(Source: 4C's of marketing mix, 2017)
Illustration : 4C's of marketing mix
(Source: 4C's of marketing mix, 2017)

Born Global Theory- This theory stated that a company from inception, wants to derive
essential competitive benefits form the use of resources and sale of products and services in
multiple countries (Gnizy, 2016). There are many companies but they do not able to make them
born global company. The companies belong to born global, from the starting they have
worldwide focus and commit their resources to international ventures. There are many countries
who operates from their home nation and after some time, they develop there business on global
level. The organisation including born global organisation enters in the international market by
direct exporting, as this is the best way to enter in the global market. Born global companies
takes help from external facilitators like FedEx to create global shipments. With these external
facilitators born global can enter or withdraw from international market easily. Moreover, when
developing or evolving market, born global employ strategies of differentiation in order to make
a niche for themselves internationally as because specialised resources, they can offer
customized products, satisfying a market which is very small to become the largest company.
Uppsala Model- It is the theory which describes international process theory. This theory
states that company first select to enter in nearby markets with low market commitment. This
model is not appropriate for all the companies. It is based on learning and evolutionary
viewpoints. This is the model which is derived from the behavioural theory that explains the
nature of the companies by the action of behaviour of its buyers and the nation of growth. This
model provides knowledge of how company can enter in foreign market. Company uses the
model to enter in to the new market with success by geographic and psychic distance. It helps in
minimizing the distance by summing up of elements that hinders the flow of information from
one market to another market. For example- languages different, education, practices of business,
culture and many other factors that differ from one place to another. These all have big role when
company enters in the market as when company desire to enter into the foreign market, they have
to consider all these elements on first priority. Company has to provide products as per the
culture of that particular country, the way of people live life and the most important factor is the
legislations of government of that particular nation. For example- company has to make
strategies for different pattern of languages as because use of same languages of particular
country makes easy and faster to penetrate from customers (Kaufmann, Czinkota, and
Zakrzewski, 2015). Thus, this model is very helpful in taking critical decision regarding
international market.
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The Eclectic Paradigm Theory- This theory was developed by John H. Dunning in 1979.
It is the theory that provides a three tiered framework for the company to follow when deciding
if it is advantageous to move on foreign direct investment (FDI). This theory is based on the
hypothesis that company will avoid transactions in the open market when internal transaction
carry lower cost. It is also known as OLI-Model. This theory is to promote development of
internalization model. It provides source of competitive benefits for international operators.
Company operating on domestic platform does not face such troubles which companies faced on
operating at international platform. For example lack of information, poor channels of
distribution. This theory is very helpful when company desires to beat its rivals prevailing in
global market. Addition to this, theory is not a predicting theory but it the manner of linking
various types of models that assist in understanding the several kinds of foreign production as
per the specific motivations and context (Johanson and Mattsson, 2015). There are three factors
of Eclectic Paradigm which are as follows-
Comparative Advantages- This is the factor that explains that company should asses
whether there is comparative advantage to perform functions in particular country. Apple Inc.
has competitive advantages as it has power to beat its competitors.
Ownership Advantages- This factors include proprietary information and various rights
of ownership that company hold are very essential consideration. For example- patent, copyright,
branding, trademark as well as use and management of skills which can be acquired within
foreign market. It is majorly intangible in nature. Apple Inc. has its ownership advantages.
Internalization Advantages- This is the factor that includes the degree to which
company add values to there products. It is cost effective for the company to function or operate
from various locations of market but to sustain the performance of work internally. This factor is
only useful for those companies which effectively meet the needs of product at cheaper cost.
From all the above theories which had discussed above are all the models which are parts
of Internation Process theory (IPT). The above tow theories is not applicable on the operation
and functions of Apple Inc. Born global theory is applicable for those companies which are of
small scale sectors, Apple Inc. is not a Small Medium Enterprise, it is one of the biggest brand in
the market. Another than that, Uppsala model is also not appropriate theory for Apple Inc. This
theory is also applicable for Small Medium Enterprise. The Eclectic Paradigm Theory is the best
theory for Apple Inc. as it is helps company in making decision regarding foreign direct
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investment. Apple Inc. has its patent rights on its software. Thus, Eclectic Paradigm is the best
model which Apple Inc. can use in its operations and functions (Möller and Halinen, 2018).
Question 3. Analyse the extent that you believe Country of origin effect (COO)
influences consumer perception.
Country of origin refers to the country where the product is been manufactured or
produced or from where the goods are departed or shipped. It is also known as place based
branding. Country of origin effects on how consumers perceive products manufactured or
produced in a particular country. Here the products from Apple Inc. which is a California, US
based company. The consumers all around the world considers the product from US to be of
superior quality. In the same context the consumers of Apple products in Malta also considers
that products shipped from US would be of superior quality and would be up to the specification.
In country of origin the consumers' perceptions for a country is been influenced by the nation's
characteristics, history, traditions, economic and political background, etc., all together create an
image of the country attached to the products. The effects of Country of origin is more on the
luxury items and durable goods and is less or weaker for products of low involvement such as
candies, shampoo, etc. (Olson and et.al., 2018).
There is a significant influence of Country of origin image on the perception and the
consumers' behaviour. The effect of country of origin is higher on the consumers who don't
know much about the products by Apple Inc. as they only consider the image of the country and
the brands image for purchasing decision for which they don't even consider the specifications or
features or prices of the product. Effect of country of origin is lower or weaker on consumers
who are well informed about the product offered by Apple Inc. as their purchasing decision is
being based upon the various features available in the product, and compare it with other brands
on the basis of higher features and specifications and on the basis of lower price offered. Country
of origin act as a main aspect for purchasing Apple Inc. products that are been categorized under
luxury product as Apple products are not much affordable for all in contrast to other brands
which provides products of similar specifications or features at low prices. It gives a feeling of
using an imported product which is designed and manufactured at a well reputed country which
only provides superior quality products in contrast to country which is known for their cheap
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inferior products, for example China is known for it low priced inferior quality product (Souchon
and et.al., 2016).
As US is known for their advanced technology it helps Apple Inc. for having brand image
on country basis for their products in Malta and is believed that the US products are
technologically advanced and believed that most of the advanced technology is introduced or
invented in US. It acts as a proxy for quality, durability, reliability and acceptability of the
products from a specific country. Consumers' purchasing perception is based on three main
characteristics i.e., Brand name, country, and price. Most of the people consider price as a
deciding factor but some also goes for the brand and the country from where it belongs as a
deciding factor for purchasing the Apple product. Apple Inc. use this marketing strategy for
focus customers' perception for define it as a global brand. The customers prefer global products
and through country of origin strategy Apple Inc. has established itself as a global brand. The
general attitude of the consumers is that the US is a rich, advanced and developed country due to
which the overall country and product image is very high which influence the consumers to
purchase company's product manufactured or designed or shipped from US. Consumers have a
perception of the product that it is shipped from US it would be properly checked and tested
before shipping or transporting the products to different countries or markets. This would
increase the trust of the consumers on the products of a particular country i.e., from US as they
know that product from US is lab tested and have the specified features in it and can be used
without any issue. Made or designed in USA have a competitive advantage as the country image
has the loyalty of customer in USA products (Kraus and et.al., 2016). COO can be sometime be
confusing for the consumers as the product must be designed else where, assembled in other
county, packed from different, etc., which is hard for the consumers for determine the origin
country of the product. Country of origin for considering a product is mostly effective on the
higher income people as they can import product from US without considering the price,
specifications or features of the product and the people having lower income decisions are not
affected by the COO as they consider price as a factor for deciding for buying than considering
from where the product belongs. COO influences the consumers' perception of the product about
its quality, risk assessment, attitudes and behaviour and the ultimate intention of the consumers
for purchasing the product. Product country origin have a greater effect on evaluation of product
than its brand name, as there are also duplicate or second copy available which sells under same
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brand name and logo. Which could be difficult for the consumers for identifying the original
product. With the product origin country detail on can identify easily whether it is a genuine
product or not. In Apple Inc. products there is a line Designed in California, US which could be a
deciding factor for determining the product is genuine or not. Consumer prefer to purchasing
technological products belonging too few selected countries such as from Japan, USA, etc. as it
is believed that they are most technologically advanced and new and innovative products are
been invented or launched there first before anywhere in the world (Raj and Griffin, 2015).
CONCLUSION
From the above report its was concluded that international marketing is simply the
applications of marketing principles to more than one country. Furthermore, this report also
make understood the management of international marketing is the key factor in achieving the
goals and objectives of company as without managing no company can get success. Moreover,
the 7P's and 4C's of marketing mix is also concluded in this report. Addition to this, various
models of internal process theories is also discussed in this report.
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REFERENCES
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Hakansson, H., 2015. Industrial Technological Development (Routledge Revivals): A Network
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Johanson, J. and Mattsson, L.G., 2015. Internationalisation in industrial systems—a network
approach. In Knowledge, networks and power (pp. 111-132). Palgrave Macmillan,
London.
Kaufmann, H.R., Czinkota, M.R. and Zakrzewski, M., 2015. B2B and internal relationships and
curative international marketing: A polish case study. Industrial Marketing
Management, 51, pp.69-78.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Kraus, S., Meier, F., Eggers, F., Bouncken, R.B. and Schuessler, F., 2016. Standardisation vs.
adaption: a conjoint experiment on the influence of psychic, cultural and geographical
distance on international marketing mix decisions. European Journal of International
Management, 10(2), pp.127-156.
Mathur, U.C., 2017. International marketing management. SAGE Publishing India.
Möller, K. and Halinen, A., 2018. IMP thinking and IMM: Co-creating value for business
marketing. Industrial Marketing Management, 69, pp.18-31.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human
resource management policies within the marketing organization: The impact on business
and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Raj, R. and Griffin, K.A. eds., 2015. Religious tourism and pilgrimage management: An
international perspective. Cabi.
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Samiee, S., Chabowski, B.R. and Hult, G.T.M., 2015. International relationship marketing:
Intellectual foundations and avenues for further research. Journal of International
Marketing, 23(4), pp.1-21.
Souchon, A.L., Hughes, P., Farrell, A.M., Nemkova, E. and Oliveira, J.S., 2016. Spontaneity and
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Online
The 4C's of Marketing Mix, 2017. [Online]. Accessed through:
<http://marketingmix.co.uk/marketing-mix-4cs/>.
The 7P's of Marketing, 2017. [Online]. Accessed through:
<https://medium.com/@elkelly15/apples-marketing-mix-11de4d25a39c>.
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