Strategic Analysis of International Marketing Management Report

This report provides a comprehensive overview of international marketing management, examining key strategies and methodologies. It delves into the strategic management of pricing policies, particularly focusing on counter trade agreements prevalent in emerging markets and developing nations. The report analyzes various market research methodologies and frameworks employed in international markets, including focus groups, surveys, interviews, observations, and field trials, emphasizing the role of digital marketing. It explores the effective use of technology and digital platforms like e-marketing and m-marketing for promoting goods and services globally. Furthermore, the report discusses the application of counter trade agreements, such as barter, counter purchase, offset, buyback, and compensation trade, as alternatives to conventional pricing methods, especially in emerging markets with limited foreign exchange. The report also highlights the challenges and opportunities in international marketing, providing insights into competitive positioning and market entry strategies. The report is based on the context of a Malaysian company, Heitech Padu Berhad, illustrating practical applications of international marketing concepts.

International Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Strategic management decision of pricing policy ......................................................................4
Market research methodologies and frameworks in international markets.................................5
PART 2............................................................................................................................................7
Counter trade agreements in emerging markets..........................................................................7
Effective usage of technology in developing countries for international marketing..................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
International marketing is the process of expanding business activities from national
boundaries to international boundaries. It includes selling and distribution of goods and services
in different countries to earn more profits. In this marketing mix of a company is strategies for
serving global market needs. It is important to market products with identification of global
needs and providing value to international customers. It is achieved with focusing resources and
business activities on global market opportunities and threats. It involves various types of
agreements to conduct inter trade activities between countries. Strategic marketing management
involves various factors in global market which influences inter trade agreements. There are
various trade agreements between countries involving foreign exchange. Counter trade
agreements are trading transactions involving goods in exchange instead of currencies. It is one
of the popular alternative for conventional money based pricing agreements. These help
emerging or developing countries with limited foreign exchange or credit facilities. Heitech Padu
Berhad is a Malaysian company dealing in IT systems and technology services headquartered in
Bursa(Baker and Saren, 2016). This report includes pricing policies in global markets for
emerging and developing countries. Also, it includes various factors impacting international
marketing, competitive positioning, market entry and international development etc.
PART 1
Strategic management decision of pricing policy
Counter trade is one of the popular method for inter trade activities in international
markets. In this trading of goods and services are occurred in exchange of other goods and
services. It is a system of international agreements which helps in reducing imbalances in
payments between other countries. It involves exchange of goods directly or indirectly instead of
exchange of foreign currencies. It helps in international trading between countries where
shortage of foreign supply is a major problem. Also, in trading with developing countries where
foreign exchange controls are major issue or hinders in trading. Due to restrictions imposed by
governments of developing nations, it limits trading activities between countries. These
developing countries uses counter trade as an alternative for pricing strategies in inter trade
agreements(Balabanis and Diamantopoulos, 2016). They are used for trading goods and services

which employs various strategies for counter trade agreements in a country. These agreements
are also used in other group of developed nations such as g7 countries including USA and UK as
rich countries. These nations uses counter trade as one of the method for initiating bilateral trade.
These trading agreements aids developing nations in building range of strategies to combat
imbalances issues. These include fluctuating balance of payments, foreign exchange reserves,
supply of import and export goods and services etc. These problems occurs majorly in
developing and under developed nations. For this they utilise benefits of counter-trade
agreements in satisfying needs for global products. Furthermore, these agreements are used
throughout every other nation to develop their markets in developing nations. These are one of
the effective method for smooth flow of goods and services and various types of trading
activities internationally. It leads to various strategic opportunities for growing nations to ensure
consistent growth and development of inter trade activities(Cateora, and et. al., 2020). These
strategies are as following:
 Barter agreements- It is one of the aged and popular counter-trade agreements. It
involves direct exchange of goods and services with other equivalent value based goods
and services. It does not involve cash transactions or cash settlements for trading
agreements. These transactions is called as barter trade in which no money is involved
due to lack of common exchange between countries. For example, a bag of wheat is
exchange for coffee or meat providing equivalent value in exchange.
 Counter purchase- In this exporter sales goods and services to importer in exchange of
an agreement to purchase other goods and services within a specified time period. It
involves certain features of barter to exchange goods with equivalent value in return. This
involves a trading firm to sell the goods exporter purchase with not using them. It
facilitates purchasing of goods and services within trading countries. It involves a
promise to purchase a specific product within particular future period.
 Offset- In an offset agreements, marketing of goods and services are used as an offset in
purchasing them. The seller helps in marketing products of manufactures or aids in
exporting products assembly with the help of manufactures in the buying countries. This
leads to offsetting of export and import activities for goods and services between
countries(Lin and Kalwani, 2018).

 Buyback agreements- These are the counter trade agreements in which a firm establish
plant in other country or provides technology, equipments, machinery, training and other
services etc. This leads to an agreement of utilising specific part of output in exchange as
partial payment in a contract.
 Compensation trade- It is a form of counter trade agreements in which one of the part is
paid in goods and other in hard currency.
Thus, counter trade agreements are used for facilitating foreign currency and helps in shortages
of supply for foreign exchange reserves in developing and emerging countries.
Market research methodologies and frameworks in international markets
Strategic marketing involves usage of digital sources which help in promoting goods and
services through internet. In this companies uses various digital platforms such as social media,
website development, content writing and other sites. This help in communicating messages or
promoting products within large number of people. Digitalisation is one of the important part due
to its presence across the world and its usage by masses. Technology has a big role in digital
revolution due to continue advancement in sector. This leads to effective use of internet, mobile
technologies and social media channels for marketing communications in big emerging markets.
It has served the strategic purpose of marketing communication with the introduction of internet
marketing. It also helps in transactional and distribution frameworks in developing countries.
E- marketing and M- marketing are popular methods for promoting businesses globally. E-
marketing is consists of electronic conducted through internet with the help of various
tools(Malhotr and Dash, 2016). These tools email, display advertising, search engine
optimisation, google ad words etc. These tools help in communicating messages effectively and
promoting brands on a large scale. M- marketing is conducted on mobile devices focuses on
reaching target audiences with the help of SMS, apps, websites and social media etc. Thus,
internet marketing is one of the effective method for promoting products on a big platform for
capturing large audience. It is achieved with the help of market research methodologies which
leads to evaluation of future potential in both E-marketing and M- marketing. These are as
following:
 Focus groups- In this research methodology targeted people are grouped with similar
interest. These groups are evaluated with questionnaires asked by the moderator in a

group. Then their answers are analysed by observers who evaluates on the basis of body
language and social behaviour of people. This helps in understanding needs and problems
faced by targeted groups in a brand.
 Surveys- These are one of the popular method for marketing research. In this targeted
people are design with sampling. Surveys are conducted with framed questionnaires
asked from participants with the help of e-mails, telephone, face to face interactions and
on other digital platforms. They help in conducting research with inexpensive and
simplicity benefits.
 Interviews- These are research methods with the help of asking open ended questions
and broad in scope. This help in receiving responses with deeper insights than other
methods. Also, it helps in getting feedbacks or responses more accurate due to face to
face interactions between two or more people. It involves small number of sample size
due to time intensive factor. It is reliable source of information and to gather key factors
affecting buying behaviours and habits(Reardon, Vianelli and Miller, 2017). Thus, it is
one of the effective method for gaining important insights which is difficult to gather.
 Observations- This involves capturing and analysing of behaviours through monitoring
and observing with the help of recordings and observers. In this customer behaviours help
in determining actual and invaluable insights for a product or brand. It provides true
picture of customer's behavioural and shopping patterns.
 Field trials- In this to analyse effectiveness of a product in a market it has been tested
with the help of free trials. It involves testing of a new product to determine value added
propositions like packaging, price and product of a brand. It is conducted by local
retailers and exhibitions which does free trials for a new product.
These methods help in evaluating market opportunities in regional, national and global markets
for enhancing markets globally by the company. These research methods provide invaluable
insights to understand future potential of digital sources. In emerging markets these platforms
play an important role to capture large number of audiences(Pick and Eisend, 2016). However, it
has gained less popularity in developing nations due to unpopularity of online shopping and
usage of digital sources. In developed nations it has been utilised effectively for international
marketing to capture big market share and position across the world. M- marketing and E-

marketing are at the initial stages for promoting brands and their products internationally. Due to
this it leads to various problems in marketing goods and services globally in developing nations.
PART 2
Counter trade agreements in emerging markets
Counter trade agreements are effective ways for scheduling trade between countries and
promoting inter trade activities in future. These are agreements which help in trading goods and
services within developing nations or emerging markets. It is consists of trades which offer
goods instead of cash settlements. Thus, these are the agreements which involves re-purchase
from buying countries by the seller for offsetting transactions. It helps in avoiding imbalances
and shortage in supply of foreign currencies. Also, it helps emerging nations to develop markets
with transacting with other developed countries(Tiwari and Korneliussen, 2018). It leads to
generating market opportunities in a nation with promoting and enhancing export and import
trades between countries. These emerging markets are focused on developing their nation with
safer trading practices between different countries. Due to various problems faced by nation in
trading with developed nations they impose various restrictions for inter trade. This leads to less
opportunities and hampers trade between countries. They faces problems such as lack of foreign
exchange reserves, inability to balance payments, more imports and lesser exports and other
financial crisis inside the developing countries. For example,
Nepal and India international trade :
These two developing nations faces problems in trading export and import activities with
other developed countries and inter trade between them. They indulge in counter trading
activities which help them in combating inter trade problems of fluctuations and imbalances in
trade. International trade is essential for these emerging nations to grow and develop their
markets. These are effective source for developing their nations with the help of various counter
trade strategies. By employing these strategies leads to effective measures for international trade
management. Emerging nations indulge in barter trading, counter purchase and offsetting trade
strategies(Zeneli, Czinkota and Knight, 2018). This help them in maintaining balances and
fluctuations in trading of goods and services. Thus, counter trade is one of the effective source
for emerging nations market settings. It helps them to grow and develop their markets globally
and leads to effective measures for international trading with developed nations.

It can be said that due to presence of various factors in international marketing it leads to
use of effective source of alternative for conventional money based pricing. Counter trade is one
of the effective measure for dealing with inter trade problems between emerging nations. This
help them in tapping international market opportunities leading to enhancement in the trade.
Furthermore, it leads to entrance in the international market with competitive positioning by the
emerging or developing nations. It helps them to develop international trade transactions with the
usage of counter trade agreements(Baker and Saren, 2016). The emerging nations are required to
use various strategies for avoiding inter trade obstacles. This can help in bringing consistency
and avoiding financial problems in developing countries. These are consists of counter purchase
trading, offsetting, barter system and other non cash transactions. Emerging markets are growing
with number of strategic changes in international trading leading to growth and development of
nations. It helps in attracting foreign direct investments and other business opportunities.
Furthermore, various strategic and operational factors impacting international marketing
including political, economical and cultural fluctuations. These changes hamper emerging
nations in marketing and trading activities of developing nations such as India, Vietnam, Nepal
and other developing countries.
Effective usage of technology in developing countries for international marketing
Technology has become one of crucial player for developing countries in framing
effective marketing strategy. It has been using various social media platforms and mobile
technology for covering international markets. International markets can be reached with the
effective usage of technology by developing countries. Heitech Padu Berhad company uses
social media platforms and websites for communicating with target audiences. This help
company in delivering messages about its product and services. Company offers IT infrastructure
solutions, system integration and application development to its customers. With the usage of
IOT and related technology by the company, it helps in promoting its product internationally. It
is able to reach customers across the world with the usage of technology. Company uses mobile
technology such as SMS, e-mails, apps and website to spread awareness for its services to its
target audiences(Balabanis and Diamantopoulos, 2016). Also, it uses social media channels for
marketing its products and services to target specific audience. In developing countries company
faces various difficulties in marketing its services due to less familiarity for online purchasing.

Thus, it leads to usage of internet marketing for communication purposes in developing
countries. In developing nations, many people does not have access to internet and owns credit
card in order to facilitate transactions. This is a major factor for company to use technology for
marketing its products internationally. Also, lack of broad band connectivity facilities leads to
failure of effective usage of internet marketing in many developing countries(Cateora, and et. al.,
2020). It faces various factors affecting company in marketing its products digitally majorly in
developing nations. These are as following:
 Availability of Infrastructure- It is one of the important factor in promoting brands and
e commerce platforms due to lack of infrastructure facilities in developing countries. It is
consists of networking facilities, advancement in technology and other communication
channels. This leads to inadequacy of infrastructure facilities in developing countries
leading to failure of marketing strategy based on technology. Thus, company has to face
various problems in marketing and communicating messages for its services. It is a major
problem in developing nations which has inadequate infrastructure facilities.
 Degree of computer and mobile connectivity- Also, due to less degree of computer and
mobile connectivity in emerging nations leads to a major problem. Internet and mobile
marketing requires connectivity for reaching larger people. It is one of the leading factor
in internet marketing due to lack of connectivity facilities available in these nations.
Connectivity is one of the vital feature for internet marketing which helps in connecting
large number of people and making international markets into local market. Company
faces this problem in developing nations which leads to less market share in these
countries(Pick and Eisend, 2016).
 Lack of credit card facilities- It is due to lack of exposure in online purchasing of goods
and services in less developed nations. It leads to major problem in conducting online
marketing and purchasing of goods and services. Also, due to lack of credit card usage by
local people and their familiarity with online shopping leads to affect company's
performance.
 Broad-band connections- Due to lack of broad band connections in emerging markets
leads to one of the drawback in facilitating online marketing. It affects mobile marketing
also due to lesser connectivity available in the developing countries. This leads to a big

problem in connecting with target audiences and communicating messages to spread
awareness of its business.
Thus, company can expand its business in international markets with the help of
technology. It helps in connecting with people across the world making global market into local
market. However, due to various factors available in the developing markets leads to difficulty in
internet marketing. These developing nations have many people who has never made a telephone
call or use computer in their lives. This leads to failure of internet and mobile marketing in these
developing countries in international marketing. These problems can be overcome by developing
countries with the usage of various initiatives for developing technology or digitalisation. This
leads to stimulation and promotion of various benefits in utilising technology among local
people. It is important for the growth of international markets in emerging nations. It helps in
building competitive positioning, entry in global markets and overall developments
internationally(Lin and Kalwani, 2018)
CONCLUSION
From the above report it can be concluded that international marketing is critical for
developing nations to expand businesses globally. It includes counter trading agreements which
help in boosting export and import activities in emerging markets. Export and import trade
activities are two essential features for entering into international markets. These can be
enhanced with the help of counter trading strategies and utilising internet strategically. For
understanding international markets utilisation of research methodologies plays an important
role. Company faces various operational factors in developing their markets internationally. In
developing nations various inadequacy of infrastructure, technology and connectivity creates
problem in emerging markets(Malhotr and Dash, 2016). Thus, international markets are growing
at a faster rate leading to avoidance of various inter trade problems such as less foreign exchange
reserves and inadequate supply of foreign currencies. Company can develop its market
internationally with the help of various technology such as social media, M- marketing and E-
marketing etc. It plays an important role in connecting with global markets and to expand
businesses internationally.

REFERENCES
Books and Journals:
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Balabanis, G. and Diamantopoulos, A., 2016. Consumer xenocentrism as determinant of foreign
product preference: A system justification perspective. Journal of International
Marketing. 24(3). pp.58-77.
Cateora, P.R., and et. al., 2020. International marketing. McGraw-Hill Education.
Lin, H.C. and Kalwani, M.U., 2018. Culturally contingent electronic word-of-mouth signaling
and screening: A comparative study of product reviews in the United States and
Japan. Journal of International Marketing.26(2). pp.80-102.
Malhotra, N.K. and Dash, S., 2016. Marketing research: An applied orientation. Pearson,.
Pick, D. and Eisend, M., 2016. Customer responses to switching costs: A meta-analytic
investigation of the moderating influence of culture. Journal of International
Marketing.24(4).pp.39-60.
Reardon, J., Vianelli, D. and Miller, C., 2017. The effect of COO on retail buyers’ propensity to
trial new products. International Marketing Review.
Reardon, J., Vianelli, D. and Miller, C., 2017. The effect of COO on retail buyers’ propensity to
trial new products. International Marketing Review.
Tiwari, S.K. and Korneliussen, T., 2018. Exporting by experiential knowledge: a study of
emerging market micro firms. International Marketing Review.
Zeneli, V., Czinkota, M.R. and Knight, G., 2018. Terrorism, competitiveness, and international
marketing: an empirical investigation. International Journal of Emerging Markets.