Summary International Marketing

Lecture week 3.1 – Kick off en introduction
 TTIP-handelsverdrag  verdrag tussen EU en de VS om handelsbarrières terug te
dringen  America First.  Dit gaat dus niet door zolang Trump president blijft van
Amerika.
 CETA  Comprehensive -Economic-Trade-Agreement  handelsverdrag tussen
Europa en Canada.  gaat bijna zeker door.
 FTA-EU-MEX  handelsverdrag tussen Mexico en Europa


Lecture week 3.2 – Going into an export adventure… or not?
Two views of globalization:
1. The world is a level playing field  all players and competitors have an equal
opportunity.
2. Home matters, but so do countries abroad  smart thinking of companies. When
distances increase, cross-border trade tends to decrease.

Export failure  waste of money and energy for the company, bankruptcy, they lose focus
of their home market, which can lose the good thing of their home market.

Necessary competences  experiences of exporting, cultural knowledge, money etc.

Globalization  the world is becoming smaller  better communication, better travel.
More and more countries and economies are getting connected  free trade areas (EU)
A lot of trade barriers are coming back nowadays  Russia boycott fruits from Europa,
Brexit, TTTIP  looks like globalization is going backwards.

Financial crisis 2008  mortgage problem in the USA  banks gave too much mortgages,
Americans could not pay them back  financial crisis

Global strategy should not be based on elimination (remove) of differences and distances,
but on understanding them.

Purpose of a marketing plan  to create sustainable competitive advantages.

Different kind of distances  psychic distance and physical distance
Psychic distance  fysieke afstand tussen landen
Physical distance  mentale afstand. De cultuurverschillen

Not all type of companies follow the same proces:
LSEs  larges sized enterprises. Only 1% in the EU.
SMEs  small-medium sized enterprises




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,Unsystematised process  Unsolicited orders  orders waar je niet om gevraagd hebt 
export kan je overkomen  schorem (barbershop). Als ze wisten dat ze internationaal
gingen, hadden ze hun barbershop nooit schorem genoemd.

Systematized process  Making an internal analysis and external analysis. Trying to make a
match between the 2 analyses. After this a SWOT-analyse will be made.

Systematized process:
- The decision whether to internationalize
- Deciding which markets to enter
- Market entry strategies
- Designing the global marketing programme
- Implementing and coordinating the global marketing programme

As the environment is changing, the strategy should be changing during the same time 
incremental change. If not doing  strategic drift (did your own strategy, but did not look at
the environment). Lego had in 2003 een strategic drift, ze dachten dat hun uniek concept
superieur was aan andere producten. De beroemde lego blokken werden onder druk gezet
door de opkomst van tv’s, video’s, CD-ROM games en internet, waardoor ze grote verliezen
leden; ze hadden hun strategie niet aan de juiste omgeving aangepast.

EPRG frame work  every letter stands for a possible strategy
1. Ethnocentric (beoordelen van culturen op basis van je eigen cultuur)  needs of the
home country are most relevant  Shell  they have 2 head offices in NL and UK 
they can sell their product all over the world without any adaptions or changes.
Headquarters are making decisions.
2. Polycentric  every country should be targeted in a different way  CRH; gamma,
karwei vallen onder CRH  you don’t know CRH, because they are working different
for every country.
3. Regiocentric  a marketing programme per region  Microsoft; they have head
offices per continent and they are focused per region.
4. Geocentric  global product concepts with local adaptions  Disney; they have
global concepts; local adaptions of Disney are translating movies.

Initiation  When a firm expands its R&D, production, selling and other business activities
into international markets.

Motives for starting exporting:




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, Managerial urge  when a manager feels the urge to go abroad, because he knows people
or he likes the place because he went on holiday  it’s really coming from feelings to
export.


Lecture week 3.3 – Going into an export adventure… or not?
Internationalization occurs when at least one department is working global.

Chapter 3
Several distances:
 Physical distance  the real distance. The distance you or your products have to
travel before it reaches your customers. Different time zones.

 Cultural distance  Middle East has a free day on Friday and not Sunday. The
distance between your own and the other culture (Hofstede, Trompenaars). If the
culture is very similar to your own culture, it won’t be a problem to export your
product to.

 Psychic distance  country characteristics distance + people characteristics distance.
The knowledge of the culture.

Three important thoughts on the psychic distance:
1. This could be an obstacle for starting to export towards a foreign market.
2. The bigger the psychic distance is, the higher the impact on the marketing mix; more
adaptions are being needed.
3. It is possible to reduce the manager’s psychic distance towards foreign markets 
train people, let them go to the country.

Four Internationalization models (Can be used for internal analysis)
1. The Uppsala (stage) model  it tells the stages of doing international business.
On the vertical side it shows that the company starts just with one market, but when it gets
better it has more markets.




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