BA101 Introduction to Business International Business Module

BA101 Introduction to Business 

International Business Module 

International Marketing

Learning Objectives 

� Review International Marketing 

Blunders 

� Understand Key Marketing Concepts 

� Review Product Considerations 

� Understand the importance of 

building customer relationships 

internationally

International Marketing Blunders 

� The company Electrolux, a Scandinavian company that 

manufactures and sells vacuum cleaners, first attempted to 

market in the United States in the 1970s. Their chosen slogan 

was, "Nothing sucks like an Electrolux." 

� When American car company GM tried to market its popular 

Chevy Nova in Latin America, sales were extremely disappointing. 

They only later realized that the term "Nova" means "doesn't go." 

� The American baby food company Gerber, usually sells its jars of 

baby food with a picture of the Gerber Baby on the label. In 

certain areas of the Middle East, it is customary to put pictures of 

the contents on the label, largely due to high illiteracy rates 

among women. When Gerber put the Baby on the label, people 

thought that it was actually made from babies. 

� A German consumer goods company that tried to market and sell 

toilet paper and other paper goods in the United States named 

their goods, "Krapp." 

� When Pepsi tried to use its slogan, "Come Alive with Pepsi" in 

China, the translation came to mean, "Bring back your dead 

ancestors with Pepsi.” 

Source: http://everything2.com/title/Marketing%2520blunders

International Marketing Blunders Cont.. 

� The Swedish furniture giant IKEA somehow agreed upon the name 

"FARTFULL" for one of its new desks. Enough said.. 

� When Braniff International Airways translated a slogan touting its 

upholstery, “Fly in leather”, it came out in Spanish as “Fly naked”. 

� There are several examples of companies getting tangled up with bad 

translations of products due to the word "mist". We had "Irish Mist" (an 

alcoholic drink), "Mist Stick" (a curling iron from Clairol) both flopping as 

"mist" in German means dung/manure. Fancy a glass of Irish dung? 

� In 2002, Umbro the UK sports manufacturer had to withdraw its new 

trainers (sneakers) called the Zyklon. The firm received complaints from 

many organisations and individuals as it was the name of the gas used by 

the Nazi regime to murder millions of Jews in concentration camps. 

� Sharwoods, a UK food manufacturer, spent £6 million on a campaign to 

launch its new 'Bundh' sauces. It received calls from numerous Punjabi 

speakers telling them that "bundh" sounded just like the Punjabi word for 

"arse". 

As can be seen with these few examples, international business 

and especially international marketing has opened the door to a 

few laughs. With the increasing amount of globalization occurring 

today, it will be interesting to see what blunders may come.

Overview of Key Concepts - I 

Organization Level Type of Strategic Plan Key Strategic Decisions 

Corporate level Corporate strategic plan Corporate vision 

Corporate objectives and resource 

allocation 

Corporate growth strategies 

Business-unit composition 

Business unit level Business strategic plan Market scope 

Competitive advantage 

Functional level Marketing strategic plan Target market approach 

(Marketing) 

Marketing mix approach 

Source: Marketing Principles and Perspectives, Bearden et al. (2004)

Key Concept II 

� International Business focuses on teaching 

about business functions. International 

Marketing focuses on teaching marketing 

functions. 

• Focus on Target Market 

• Focus on Marketing Mix

Product Consideration 

� How attractive is the product or service to 

international markets? 

• Can the product be adapted to a foreign 

market? 

• How close are you to those markets? 

• Most companies enter into foreign markets by 

concentrating on a few select markets and 

keeping the product basically the same. 

Consider a company that produces US flags – 

what are good markets to consider?

Product Consideration 

� Alternative is to diversify location for 

manufacturing 

• Delphi (a GM parts supplier) follows GM to 

Mexico 

• Suppliers follow McDonalds to various 

countries 

� Market Related Factors – 

• An international manager needs to consider 

the political, economic, and cultural 

environment

Understanding Your Customer 

� International marketing requires that you not 

only have a good handle on the fundamentals 

of marketing but also understand the context 

of the culture that you are marketing to. 

� Context is seen as one of the most important 

cultural dimensions and most difficult to 

define. Context has to do with how much you 

have to know about a culture to communicate 

effectively. 

� All countries cultures fall within a continuum 

of being either high context – low context – 

or somewhere in the middle.

High & Low Context Culture Differences 

Source: http://www.deakin.edu.au/studentlife/counselling/images/highlowculture.jpg

High & Low Culture Variation 

Source: http://www.deakin.edu.au/studentlife/counselling/images/highlowculture.jpg


� High Context Culture & Countries: 

• High context refers to societies or groups 

where people have close connections over 

a long period of time. Many aspects of 

cultural behavior are not made explicit 

because most members know what to do 

and what to think from years of interaction 

with each other. Your family is probably an 

example of a high context environment. 

• East Asian and to some extent Middle 

Eastern countries are seen as high context.

Country Alignment on Continuum 

Source: http://www.pacific.edu/SIS/culture/Graphics/highlow.jpg


� Low Context Culture & Countries: 

• Low context refers to societies where people tend to 

have many connections but of shorter duration or for 

some specific reason. Messages are often direct and 

explicit and the context of the relationship is less 

important. In these societies, cultural behavior and 

beliefs may need to be spelled out explicitly so that 

those coming into the cultural environment know how 

to behave. 

• North American, Australia, and Scandinavian, countries 

are seen as low context.

Selected Videos…… 

(right click and then “open hyperlink”) 

Global Edge Video Depository: 

Cultural Context Video: 

India’s Car Industry Caters to Booming Market: 

Consequence of Globalization: 

Consequences of Globalization Part 2: 

Sudan’s Economy Fueled by China: 

China Rising: the Chinese Consumer:

Exercises & Simulations 

Cultural Detective - Cultural Detective 


A dynamic, situation- and values-based series of training tools, Cultural 

Detective encourages participants to develop intercultural competence in 

themselves and their organizations. Cultural Detective participants identify and 

explore a culture using key values as "clues" to solve cross-cultural "incidents" 

or mysteries and develop practical strategies for enhancing intercultural 

collaboration. Around thirty culture versions are available in online store. 

Focus: International Business Format: Software 

Don't Gross Out the World - Family Education Network 


A small Macromedia Flash animation that goes through eleven 

questions on dining etiquette in different countries. A short but fun 

animation that can be used to introduce students to the topic of 

cultural differences. Requires Shockwave Player to run. 

Focus: International Business Format: Web Based

Selected Resources & Websites…… 


Global EDGE 

Cultural Website by Country 

International Business Etiquette and Manners 

International Marketing Links 

Anime Advertising in Japan 

Benihana Rolls Out Anime Ads 

Booz Allen Hamilton 

McKinsey Quarterly 

Economist

Selected Cases & Books… 

HBS cases 

� Philips vs. Matsushita: A New Century, A New Round 

� Lenovo: Building a Global Brand 

� Mary Kay Cosmetics: Asian Market Entry 

� DHL Worldwide Express 

� Planet Reebok 

� Real Madrid Club de Futbol 

� Heineken NV: Global Branding and Advertising 

� Books: 

� Global Marketing – Johansson 

� Global Marketing Management – Kotabe and Helsen 

� International Business – Cavusgil, Knight and Riesenberger 

� International Marketing Research – Craig and Douglas 

� Marketing Across Cultures – Usunier and Lee 

� The Case Study Handbook – Ellet (HBS press) 

� Understanding Global Cultures – Gannon 

� Redefining Global Strategy - Ghemawat

Citations 

� 1. Ball, Geringer, Minor, McNett, International Business (Burr 

Ridge, IL: McGraw-Hill Irwin, 2010),p468. 


Ridge, IL: McGraw-Hill Irwin, 2010),p469. 

� 3. Business link: www.businesslink.gov.uk 


Ridge, IL: McGraw-Hill Irwin, 2010),p478 


Ridge, IL: McGraw-Hill Irwin, 2010),p485

BA101 Introduction to Business International Business Module

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