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International Marketing and Logistics

Course developer

Prior knowledge

Ekon5137, Marketing Research and Market Forecasting

Course abstract

The study course provides knowledge on the development of international marketing and its importance in the global economics. Master students acquire basic principles of international marketing theory and skills for developing and implementation of target-oriented international marketing strategies. Master students will comprehend the basic principles and specific techniques for customer needs' identification, optimal organization of international flow of commodities, providing of the sales process, optimization of logistics costs and attraction of sustainable distribution channels partners.

Learning outcomes and their assessment

Knowledge
In-depth knowledge and understanding of the specifics of international marketing, the basic postulates of the theory, strategies and indications for their use in different world market conditions. In-depth knowledge and understanding of international market analysis methods and their practical application for making meaningful marketing decisions. In-depth knowledge and understanding of the role, functions and resources of international logistics chain. Knowledge is assessed in written tests.
Skills
Ability to critically evaluate, select, systematize and practically use the information gathered from various national statistical databases and professional organizations for the analysis of a specific international logistics problem. Ability to discuss the problems of international marketing in the context of various geopolitical circumstances. Ability to explain the specifics of market conditions in a particular country. Ability to perform economic evaluation of logistics costs. Ability to develop, manage and control a set of elements of the international marketing mix in a specific market, based on the collection and analysis of secondary data of a particular company, as well as the collection and processing of primary data. Skills are assessed in practical group works, discussions, calculations in the test, as well as in the development and presentation of the final research work to the audience.
Competences
Ability to independently select and critically analyse the most suitable international transport route, multimodal nodes, the most advantageous transportation system in a particular situation and calculate the appropriate logistics costs
Using theoretical knowledge and practical application of qualitative and quantitative data analysis, ability to independently develop, manage and control international marketing and logistics functions in different geopolitical situations and different market competition conditions. Competences are assessed in the preparation of the final research, data analysis, drawing conclusions, presentation of research findings and their argumentation to the audience.

Course Content(Calendar)

24 h lectures, 24 h practicals.
• Drivers of the globalization process and development trends of international trade. Impact of economic, social, technological, legislative and climate factors on the global business environment. The role of regional and global organizations in international trade. 1h
• Theoretical framework and discourse of international marketing. International marketing concepts, functions, tools, paradigms. 1h
• The role of marketing research in determining the potential of the international target market. Sources of international marketing information - primary and secondary research, their possibilities and limitations. 1h
• Features of international market segmentation. Socio-economic, cultural, demographic, geographical variables. International market segmentation opportunities and limitations. 1h
• Global competition and key competition strategies in international business. Methods of competition analysis at the macro, meso and micro levels. M. Porter's national competitiveness diamond. The model of M. Porter's five competitive forces and Burton's five cooperative forces. 1h
• Basic conditions for developing an international marketing strategy. Corporate, business and functional level strategies’ framework, goal setting. 1h
• The role of the specifics of cultural differences in the development of marketing strategy. Hofstede's model for evaluating consumer behaviour in different cultures. 1h
• Creating an international product offer. Adaptation and standardization. The international life cycle of the product, the description of its stages and the development of appropriate marketing measures. Product portfolio analysis, demand forecasting.
Branding and legal aspects of brand registration. Dimensions of brand personality and identity. Brand development process. Brand management strategies. 1h
• Development of pricing policy in the international market. Competitive price analysis of production resources. Types of pricing strategies, goals. 1h
• International marketing communication complex. Pull and Push approaches in international marketing communication. Specifics of communication complex development for product promotion in foreign markets: advertising, sales stimulation, direct marketing, public relations. 1h
• Horizontal and vertical integration opportunities in international product marketing. Export, licensing, strategic alliances, joint ventures and franchise cooperation: product promotion opportunities and challenges. 1h
• International marketing management system. Planning, organization, coordination, control of international marketing activities.
Customer relationship management and social responsibility issues in international marketing. Product quality and customer satisfaction evaluation methods: performance evaluation, determination of the expected quality compliance vs. the real quality, importance-performance analysis. Problems of international marketing ethics and corporate social responsibility. 1h
• Development of logistics in the world and in Latvia. The essence of the concept of logistics, theoretical guidelines and historical development. Application of modern logistics technologies in Latvia. 1h
• Integrated international logistics approach and transformation of logistics systems. Analytical, information, marketing and integrated logistics approach, their advantages and disadvantages in the international environment. 1h
• International logistics environment, factors influencing it. The essence of the logistics environment. Internal and external logistics environment. Environmental factors that directly and indirectly influence logistics. 1h
• Evaluation of factors influencing logistics. Legislative basis of logistics, economic situation of the country, international relations, level of scientific, technological and technical development, state policy, educational opportunities in the sector, demographic situation of the state, infrastructure. 1h
• The role of order management in product flows. Order fulfilment logistics cycle. Order acceptance and pre-processing, order transfer, order requirements determination, order execution planning, monitoring and control in accordance with the company's marketing strategy and international environment. 1h
• The role of transport in ensuring logistics processes in international trade. Choice of the transport type. Choice of cargo transportation system. Transport costs and tariffs. 1h
• Choice of carriers. The term “third party logistics” (3PL) companies. Application of evaluation methods in 3PL selection. Application of multi-criteria decision-making method in the international environment and scheduling. 1h
• Basic principles of creating optimal international transport routes. Multi-modal nodes. 1h
• The role of packaging in logistics processes. Packaging, its functions and types. Packaging in logistics and marketing. 1h
• The role of inventory in international marketing and logistics, inventory management. Nature and classification of stocks. Inventory management methods. Inventory volumes and marketing. 1h
• Warehouse logistics. Warehouse management. Logistics decisions in a warehouse. Customs warehouses. 1h

• Distribution logistics, its basic principles in the international market. Establishment of distribution logistics system in international markets. 1h

Requirements for awarding credit points

Passed test on theoretical aspects of international marketing; passed test with calculations in the logistics part; successful evaluation for participation in practical works; positive evaluation in final research work and positive evaluation for presentation of the final research work findings to the audience.

Description of the organization and tasks of students’ independent work

Practical research on national competitiveness and market specifics, analysis of the data obtained by using various online databases. Identification of consumer needs, adaptation of product characteristics to consumer needs; getting acquainted with the experience of global corporations.
Getting acquainted with the logistics environment in different countries. Analysis of goods flows in multinational companies. Performance evaluation of 3PL companies operating in various international markets.
Evaluation of various elements of the international marketing and logistics system to improve the company's export capacity.

Criteria for Evaluating Learning Outcomes

Four activities are evaluated in the course: written test in the international marketing part (15%); participation in practical works (30%); independent work with calculations in the logistics part (15%); development of individual research (30%) and presentation of the research findings to the audience (10%). The exam may be taken only if a successful evaluation in tests and practical works has been obtained.

Compulsory reading

1. Stöttinger, B., Schlegelmilch, B. B., Zou, S. Advances in International Marketing, volume 26. Bingley, UK : Emerald Group Publishing Limited. 2015. Pieejams ar LLU IS lietotājkontu: http://ezproxy.llu.lv:2139/ehost/ebookviewer/ebook/ZTAwMHh3d19fMTA4ODg5OF9fQU41?sid=44510481-0c50-4218-8267-530dd38963b3@sdc-v-sessmgr03&vid=2&format=EB&rid=5
2. Hollensen S. Global Marketing: a Decision-Oriented Approach. Harlow, Pearson, 2011, pp. 756.
3. Pierre A.David International Logistics: The Management of Internationale Trade, 5th Edition. Cicero Books, LLC, 2017, pp 745.

4. Christopher M. Logistics and supply chain management. Third Edition. London: Prentice-Hall International., 2005., 305 p

Further reading

1. Bakari M. The Dilemma of Sustainablity in the Age of Globalization. Lanham: Lexington Books, 2017, pp.225.
2. Dersky, H. International Management. Managing Across Borders and Cultures. Harlow, Pearson, 2014, pp. 407.

3. Gillespie K., Hennessey H.D. Global Marketing. Routledge, 2015, pp. 598.

Periodicals and other sources

1. Dienas Bizness” , nedēļas laikraksts : Latvijas biznesa avīze

2. “Kapitāls”, Rīga: SIA BIG Media, ISSN 1407-2505

Notes

Limited elective course in the specialization direction “Sustainable territorial development and marketing” of the ESAF academic master's study programme “Economics”.