INTERNATIONAL MARKETING
Content
Content ................................................................................................................................. 1
What’s in a name................................................................................................................... 4
International Marketing .......................................................................................................... 4
International marketing: 5 decisions ...................................................................................... 4
CASE: Albert Hein ................................................................................................................. 5
Albert Hejin Positioning...................................................................................................... 5
Assortment ........................................................................................................................ 5
Merger ............................................................................................................................... 5
CHAPTER 1 – GLOBAL MARKETING .................................................................................. 6
International business ........................................................................................................ 6
Internationalization vs Globalization ............................................................................... 6
Global marketing ........................................................................................................... 6
EPRG Framework.......................................................................................................... 6
Globalization vs Localisation ............................................................................................. 8
CASE: Henkel – Persil Black/Abaya .............................................................................. 9
CASE: McDonalds ......................................................................................................... 9
Glocalization .................................................................................................................. 9
The global marketing concept ...........................................................................................11
Global marketing definition ...........................................................................................11
CHAPER 2 – DECISIONS TO INTERNATIONALIZE (International Analysis) ......................12
Global Marketing in the firm ..............................................................................................12
Global Marketing Decision Model .................................................................................12
Should the company internationalize at all? ..................................................................15
Global Marketing concept .............................................................................................16
Forces for global integration & market responsiveness .................................................18
Value Chain: a framework for identifying international competitive advantage ..............18
Initiation of internationalization..........................................................................................18
Introduction ...................................................................................................................19
Internationalization motives ..........................................................................................19
Triggers of export (change agents) ...............................................................................23
SME’s: Start of internationalization ...............................................................................23
Barriers and risks ..........................................................................................................25
Internationalization theories ..............................................................................................27
The Uppsala internationalization model .......................... Error! Bookmark not defined.
The Transaction Cost Analysis (TCA) model ................................................................27
The network model .......................................................................................................27
Born globals..................................................................................................................27
1
,CHAPTER 3 - External analysis & Market selection .............................................................28
Global market research ....................................................................................................28
Information is the key....................................................................................................28
Link between global market research and the decision-making process .......................28
Secondary and primary data: overview .........................................................................28
The International Market Selection process (IMS) ............................................................29
International Market Selection ......................................................................................29
SME’s versus LSE’s .....................................................................................................29
The IMS strategy of SME’s ...........................................................................................29
Building a model for International Selection ..................................................................30
CHAPTER 4 - External analysis DESTEP ............................................................................42
DESTEP: Demographic factors ........................................................................................42
Demographic influences ...............................................................................................42
DESTEP: Economic factors ..............................................................................................42
Economic development ................................................................................................43
Exchange rates.............................................................................................................45
Trade policy ..................................................................................................................47
Regional economic integration ......................................................................................49
DESTEP: Socio-cultural environment ...............................................................................52
What is culture? ............................................................................................................52
Classification of culture .................................................................................................54
Elements of culture to be researched............................................................................61
DESTEP: Technological factors........................................................................................65
Global internet usage....................................................................................................65
Search engines used worldwide ...................................................................................65
DESTEP: Ecological factors .............................................................................................66
Geography....................................................................................................................66
Climate .........................................................................................................................66
DESTEP: Political/legal factors .........................................................................................66
Type of government ......................................................................................................66
Pressure groups ...........................................................................................................67
Boycotts........................................................................................................................67
Legislation ....................................................................................................................67
CHAPTER 5 – How to create and develop competitive advantage in the international
market? ................................................................................................................................68
Macro level National competitiveness ...............................................................................68
Porters’ Diamant ...........................................................................................................68
Related & supporting industries ....................................................................................69
Firm strategy, structure & rivalry ...................................................................................69
Government ..................................................................................................................70
Chance .........................................................................................................................70
2
, Conclusion ....................................................................................................................70
Exercise........................................................................................................................71
MESO level Competitiveness in an industry .....................................................................72
Porter’s 5 forces ...........................................................................................................73
Intensity of rivalry / Market competitors .........................................................................73
Bargaining power of suppliers .......................................................................................74
Bargaining power of buyers/customers .........................................................................74
Threat of substitute products/services...........................................................................75
Threat of new entrants ..................................................................................................75
Conclusion: Porter’s 5 forces ........................................................................................76
Exercise: Coca Cola .....................................................................................................76
Micro level: competitiveness on customer level ................................................................77
Two fundamental sources of competitive advantage.....................................................78
Blue Ocean vs. Red Ocean strategy .............................................................................78
CHAPTER 6 – Market Approach ..........................................................................................80
Segmenting – targeting – positioning ................................................................................80
Micro segmentation ......................................................................................................80
Target market strategies ...............................................................................................80
Product positioning .......................................................................................................83
Market entry strategies .....................................................................................................85
Alternative Market Entry Modes ....................................................................................85
Export modes ...............................................................................................................86
Contractual modes........................................................................................................87
Investment modes ........................................................................................................88
Adapting the Marketingmix ...............................................................................................88
Place (Distribution) .......................................................................................................88
Product .........................................................................................................................93
Price ...........................................................................................................................106
Promotion ...................................................................................................................113
3
, What’s in a name
"At its simplest level, international marketing involves making one or more marketing mix
decisions across national boundaries.
At its most complex level, it involves establishing manufacturing facilities overseas and
coordinating marketing strategies across the globe.”
Doole and Lowe (2001)
International Marketing
Find international customer needs and satisfy them better than the competition.
Important questions:
- Is this realistic?
- Do you have what it takes?
- Are you doing it for the right reasons?
- Do you know what you’re getting into in terms of competition?
International marketing: 5 decisions
1. Whether to internationalize
2. What markets to enter
3. Market entery strategies
4. Designing the International Marketing Plan (IMP)
5. Implementing & coordinating the IMP
4
Content
Content ................................................................................................................................. 1
What’s in a name................................................................................................................... 4
International Marketing .......................................................................................................... 4
International marketing: 5 decisions ...................................................................................... 4
CASE: Albert Hein ................................................................................................................. 5
Albert Hejin Positioning...................................................................................................... 5
Assortment ........................................................................................................................ 5
Merger ............................................................................................................................... 5
CHAPTER 1 – GLOBAL MARKETING .................................................................................. 6
International business ........................................................................................................ 6
Internationalization vs Globalization ............................................................................... 6
Global marketing ........................................................................................................... 6
EPRG Framework.......................................................................................................... 6
Globalization vs Localisation ............................................................................................. 8
CASE: Henkel – Persil Black/Abaya .............................................................................. 9
CASE: McDonalds ......................................................................................................... 9
Glocalization .................................................................................................................. 9
The global marketing concept ...........................................................................................11
Global marketing definition ...........................................................................................11
CHAPER 2 – DECISIONS TO INTERNATIONALIZE (International Analysis) ......................12
Global Marketing in the firm ..............................................................................................12
Global Marketing Decision Model .................................................................................12
Should the company internationalize at all? ..................................................................15
Global Marketing concept .............................................................................................16
Forces for global integration & market responsiveness .................................................18
Value Chain: a framework for identifying international competitive advantage ..............18
Initiation of internationalization..........................................................................................18
Introduction ...................................................................................................................19
Internationalization motives ..........................................................................................19
Triggers of export (change agents) ...............................................................................23
SME’s: Start of internationalization ...............................................................................23
Barriers and risks ..........................................................................................................25
Internationalization theories ..............................................................................................27
The Uppsala internationalization model .......................... Error! Bookmark not defined.
The Transaction Cost Analysis (TCA) model ................................................................27
The network model .......................................................................................................27
Born globals..................................................................................................................27
1
,CHAPTER 3 - External analysis & Market selection .............................................................28
Global market research ....................................................................................................28
Information is the key....................................................................................................28
Link between global market research and the decision-making process .......................28
Secondary and primary data: overview .........................................................................28
The International Market Selection process (IMS) ............................................................29
International Market Selection ......................................................................................29
SME’s versus LSE’s .....................................................................................................29
The IMS strategy of SME’s ...........................................................................................29
Building a model for International Selection ..................................................................30
CHAPTER 4 - External analysis DESTEP ............................................................................42
DESTEP: Demographic factors ........................................................................................42
Demographic influences ...............................................................................................42
DESTEP: Economic factors ..............................................................................................42
Economic development ................................................................................................43
Exchange rates.............................................................................................................45
Trade policy ..................................................................................................................47
Regional economic integration ......................................................................................49
DESTEP: Socio-cultural environment ...............................................................................52
What is culture? ............................................................................................................52
Classification of culture .................................................................................................54
Elements of culture to be researched............................................................................61
DESTEP: Technological factors........................................................................................65
Global internet usage....................................................................................................65
Search engines used worldwide ...................................................................................65
DESTEP: Ecological factors .............................................................................................66
Geography....................................................................................................................66
Climate .........................................................................................................................66
DESTEP: Political/legal factors .........................................................................................66
Type of government ......................................................................................................66
Pressure groups ...........................................................................................................67
Boycotts........................................................................................................................67
Legislation ....................................................................................................................67
CHAPTER 5 – How to create and develop competitive advantage in the international
market? ................................................................................................................................68
Macro level National competitiveness ...............................................................................68
Porters’ Diamant ...........................................................................................................68
Related & supporting industries ....................................................................................69
Firm strategy, structure & rivalry ...................................................................................69
Government ..................................................................................................................70
Chance .........................................................................................................................70
2
, Conclusion ....................................................................................................................70
Exercise........................................................................................................................71
MESO level Competitiveness in an industry .....................................................................72
Porter’s 5 forces ...........................................................................................................73
Intensity of rivalry / Market competitors .........................................................................73
Bargaining power of suppliers .......................................................................................74
Bargaining power of buyers/customers .........................................................................74
Threat of substitute products/services...........................................................................75
Threat of new entrants ..................................................................................................75
Conclusion: Porter’s 5 forces ........................................................................................76
Exercise: Coca Cola .....................................................................................................76
Micro level: competitiveness on customer level ................................................................77
Two fundamental sources of competitive advantage.....................................................78
Blue Ocean vs. Red Ocean strategy .............................................................................78
CHAPTER 6 – Market Approach ..........................................................................................80
Segmenting – targeting – positioning ................................................................................80
Micro segmentation ......................................................................................................80
Target market strategies ...............................................................................................80
Product positioning .......................................................................................................83
Market entry strategies .....................................................................................................85
Alternative Market Entry Modes ....................................................................................85
Export modes ...............................................................................................................86
Contractual modes........................................................................................................87
Investment modes ........................................................................................................88
Adapting the Marketingmix ...............................................................................................88
Place (Distribution) .......................................................................................................88
Product .........................................................................................................................93
Price ...........................................................................................................................106
Promotion ...................................................................................................................113
3
, What’s in a name
"At its simplest level, international marketing involves making one or more marketing mix
decisions across national boundaries.
At its most complex level, it involves establishing manufacturing facilities overseas and
coordinating marketing strategies across the globe.”
Doole and Lowe (2001)
International Marketing
Find international customer needs and satisfy them better than the competition.
Important questions:
- Is this realistic?
- Do you have what it takes?
- Are you doing it for the right reasons?
- Do you know what you’re getting into in terms of competition?
International marketing: 5 decisions
1. Whether to internationalize
2. What markets to enter
3. Market entery strategies
4. Designing the International Marketing Plan (IMP)
5. Implementing & coordinating the IMP
4
