International Marketing – summary lectures
Lecture 1
Marketing: Basic Blocks
• Marketing – performance of business activities designed to plan, price, promote, and direct the flow of a
company’s goods and services to consumers or users for a profit.
Marketing Strategy: 5C’s of the Target Market
1. Customers: Needs and profile
2. Company, Collaborators, Competitors
3. Context: Sociocultural, technological, regulatory, economic, physical
Marketing Strategy: Value
Value proposition
Value the company aims to create in the target market. Defined by:
- Customer value: why should consumers spend their money on our
products and not our other product or that of competitors?
- Collaborator value: why should franchisees choose us, and not our
competition or open independent store?
- Company value: why should we spend money and man-hours of our
engineers, management team, salesforces, etc. on this product and not
another one in the company’s portfolio?
, Optimal value proposition?
International marketing = marketing?
Marketing – performance of business activities designed to plan, price, promote, and direct the flow of
a company’s goods and services to consumers or users for a profit.
International marketing – same activities performed in more than one nation
- Presenting unfamiliar problems
- Varying levels of uncertainty
GLOBAL vs. MULTINATIONAL
Global Corporation Multinational Corporation
Operates in multiple countries Operates in multiple countries
With constancy – at low relative cost – as if Adjusts its products and practices in each –
the entire world (or major regions of it) at high relative costs
were a single entity
Sells the same things in the same way
everywhere
Standardization Adaption to local tastes
- Lower prices - Higher prices
- Greater learning opportunities - Less learning (knowing something
(knowing anything about one thing) about many things)
Levitt: The Globalization of Markets (1983)
• “Only global companies will achieve long-term success by concentrating on what everyone wants rather than
worrying about the details of what everyone thinks they might like.”
Interbrand: Global Brand Measures
o % of revenue coming from outside of the brand’s home region
o Significant presence in Asia, Europe, and North America as well as
broad geographic coverage in emerging markets
o Public profile and awareness across the major economies of the
world
Global ≠ Standardized
- Toyota (# 7): “Vehicle names, technical details, equipment specs and colors of the model
presented here may vary from country to country. Not all models are available in your country.”
- McDonalds (# 9): Customized sandwiches across countries
- LV (# 13): Product and price customization in Japan
- JP Morgan (#24): Islamic banking
Cultural Universals: Etic vs. Emic
, Constructs that apply equally well to other cultures
o Etic constructs
o Not equally important, yet equally applicable across cultures
o Survey-based studies with cross-sectional comparisons
- Hofstede’s cultural dimensions, World Values Survey
- Humor, beauty?
Constructs that apply to a given culture
o Emic constructs
o Not applicable across cultures
o Determined through perceptions of culture members
- Guanxi (China)
- Hygge (Denmark)
- Non-discrimination
Universal vs. Country-specific Behaviors
Consumer behaviors/attitudes that are similar across cultures?
E.g. how do we assess quality?
- Brand
- Physical features
- Price
- Retailer reputation
Dawar and Parker (1994)
• Research Question: Are there culture-invariant consumer behaviors?
- Empirical test in 38 countries (Latin, Germanic, Anglo, Nordic, other)
- n = 640
- Technology products
- Matched-sample approach (young, mobile, affluent, educated)
Cultural Universals Testing
Measure:
In general how likely are you to personally use brand names [physical appearance/prices/retailer
reputation] as a sign of quality for purchasing electronics products?
Existence of specific behaviors
Relative order of importance of behaviors across cultures
Absolute level of behavior across cultures
, Universal vs. Country-specific Behaviors
o Existence of specific behaviors
o Relative order of importance of behaviors across cultures
o Absolute level of behavior across cultures
Lecture 2
- Targeting = process of identifying customers for whom the company will optimize its offering.
- Segmentation = grouping of customers with similar needs by focusing on those differences that
are relevant for targeting and ignoring those differences that are irrelevant.
Targeting and segmentation: how to?
Strategic Tactical
Strategic segmentation: grouping Tactical segmentation: grouping customers
customers based on the value the company based on their demographics and behavior.
can create and capture.
Strategic targeting: selecting one or more Tactical targeting: laying out the channels
segments to serve by tailoring the offering to be used to communicate and deliver the
to customer needs. offering to strategically viable customers.
Lecture 1
Marketing: Basic Blocks
• Marketing – performance of business activities designed to plan, price, promote, and direct the flow of a
company’s goods and services to consumers or users for a profit.
Marketing Strategy: 5C’s of the Target Market
1. Customers: Needs and profile
2. Company, Collaborators, Competitors
3. Context: Sociocultural, technological, regulatory, economic, physical
Marketing Strategy: Value
Value proposition
Value the company aims to create in the target market. Defined by:
- Customer value: why should consumers spend their money on our
products and not our other product or that of competitors?
- Collaborator value: why should franchisees choose us, and not our
competition or open independent store?
- Company value: why should we spend money and man-hours of our
engineers, management team, salesforces, etc. on this product and not
another one in the company’s portfolio?
, Optimal value proposition?
International marketing = marketing?
Marketing – performance of business activities designed to plan, price, promote, and direct the flow of
a company’s goods and services to consumers or users for a profit.
International marketing – same activities performed in more than one nation
- Presenting unfamiliar problems
- Varying levels of uncertainty
GLOBAL vs. MULTINATIONAL
Global Corporation Multinational Corporation
Operates in multiple countries Operates in multiple countries
With constancy – at low relative cost – as if Adjusts its products and practices in each –
the entire world (or major regions of it) at high relative costs
were a single entity
Sells the same things in the same way
everywhere
Standardization Adaption to local tastes
- Lower prices - Higher prices
- Greater learning opportunities - Less learning (knowing something
(knowing anything about one thing) about many things)
Levitt: The Globalization of Markets (1983)
• “Only global companies will achieve long-term success by concentrating on what everyone wants rather than
worrying about the details of what everyone thinks they might like.”
Interbrand: Global Brand Measures
o % of revenue coming from outside of the brand’s home region
o Significant presence in Asia, Europe, and North America as well as
broad geographic coverage in emerging markets
o Public profile and awareness across the major economies of the
world
Global ≠ Standardized
- Toyota (# 7): “Vehicle names, technical details, equipment specs and colors of the model
presented here may vary from country to country. Not all models are available in your country.”
- McDonalds (# 9): Customized sandwiches across countries
- LV (# 13): Product and price customization in Japan
- JP Morgan (#24): Islamic banking
Cultural Universals: Etic vs. Emic
, Constructs that apply equally well to other cultures
o Etic constructs
o Not equally important, yet equally applicable across cultures
o Survey-based studies with cross-sectional comparisons
- Hofstede’s cultural dimensions, World Values Survey
- Humor, beauty?
Constructs that apply to a given culture
o Emic constructs
o Not applicable across cultures
o Determined through perceptions of culture members
- Guanxi (China)
- Hygge (Denmark)
- Non-discrimination
Universal vs. Country-specific Behaviors
Consumer behaviors/attitudes that are similar across cultures?
E.g. how do we assess quality?
- Brand
- Physical features
- Price
- Retailer reputation
Dawar and Parker (1994)
• Research Question: Are there culture-invariant consumer behaviors?
- Empirical test in 38 countries (Latin, Germanic, Anglo, Nordic, other)
- n = 640
- Technology products
- Matched-sample approach (young, mobile, affluent, educated)
Cultural Universals Testing
Measure:
In general how likely are you to personally use brand names [physical appearance/prices/retailer
reputation] as a sign of quality for purchasing electronics products?
Existence of specific behaviors
Relative order of importance of behaviors across cultures
Absolute level of behavior across cultures
, Universal vs. Country-specific Behaviors
o Existence of specific behaviors
o Relative order of importance of behaviors across cultures
o Absolute level of behavior across cultures
Lecture 2
- Targeting = process of identifying customers for whom the company will optimize its offering.
- Segmentation = grouping of customers with similar needs by focusing on those differences that
are relevant for targeting and ignoring those differences that are irrelevant.
Targeting and segmentation: how to?
Strategic Tactical
Strategic segmentation: grouping Tactical segmentation: grouping customers
customers based on the value the company based on their demographics and behavior.
can create and capture.
Strategic targeting: selecting one or more Tactical targeting: laying out the channels
segments to serve by tailoring the offering to be used to communicate and deliver the
to customer needs. offering to strategically viable customers.
