International marketing: Introduction:
What is the easy way of international marketing: You just adapt/or even don’t adapt the marketing Mix (product place
price promotion) and put that in an other country.
What is the hard part of international marketing: you need to adapt to the culture, …
Vb. you can install overseas manufacturing activities, having global marketing strategies, with more than 100 local
adaptations. So depending on the amount of adaptations or the amount of standardization the term International
marketing gets a different meaning.
Vb. some people eat earlier in certain countries so restaurants need to adapt to this
Goal of internation marketing: Find international customer needs and satisfy them better than the competition
Important questions:
− Is it 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?
5 decisions of international marketing:
1. Wheter to internationlize
2. What markets to enter
3. Market entry strategies
4. Designing the international marketing plan (IMP)
5. Implementing and coordinating the IMP
Vb. albert hein (dia 29-38)
Internationalization vs Globalization
Globalization
= The change in the world economy to a more interdependent system
= when you can find a product everywhere all over the world
- The trend of firms buying, developing, producing & selling products/services in most countries and regions of the
world.
- Global economic integration of many formerly national economies into one global economy.
Vb. Coca cola, you find it everywhere
Internationalization
= The activity of firms on an international scale and the resulting impact of their activities
= here you are active in 2 or more countries
− International, means between or among nations.
− International can be limited to a region or a few countries
− A response to Globalization
Vb. Albert hein in NL en BE
,Global marketing
= Finding and satisfying global customer needs
What do you need to do with global marketing: Coordinating marketing activities
On what depends you global marketing: Depends on the global maturity. This world view of a firm’s business activities
can be described with the: EPRG framework
EPRG framework
Ethnocentric
Etnos = nation, people
- The home country is superior here so it’s the most relevant
- The own country is highly centralized in the decision-making
- Product is a copy-paste of home
- Organization & technology same as in home country
What are enthnocentric people: they think they are better, more thrustworthy,… than people from other countries
How do they train new people: done by trainers of by the home country
What do they do with the product: they copy past it
Ex. the original cast of K3 → copied for the Dutch market (only later: added a Dutch girl) → “aanpassing van product?”
bewust/onbewust?
Benefits Ethnocentric:
- Cheaper: no cost & efforts needed for adaptation
- High degree of control
- One-way communication
Dissadvantages ethnocentric:
- No full exploitation of opportunities worldwide
- Inefficient: decisionmakers need to travel a lot
- No opportunity to learn from other cultures
Vb. Nissan: They realised their car in the US but the temperatures are diffrent so the crs weren’t adapted to these
temps so there where alot of. Care incidents
,Poly-centric/Multi-domestic
= adapt the marketing mix to the country that you are going to
= Will try to adapt to different conditions in order to maximize profits in each location
= Each country is unique and should be targeted in a different way.
Poly = ‘a lot’, multiple
Domos = home
What does Poly-centric enterprizes recognizes: that there are different conditions for production and marketing in
different locations.
-> so they will try to adapt to different conditions in order to maximize profits in each location
- Each country is unique
- Decision-making: Host country orientation, highly decentralized
- Products & marketing: country-by-country: different conditions for production and marketing in different locations
- Each national market is distinctive (= onderscheidend)
- Focus on differences between home country & foreign country
- Marketing strategy – Localization / adaptation
- Companies’ basic goal is Public acceptance
Benefits Poly-centric:
- Better understanding of local needs
- Better exploitation of local market potential
- Easier targetting with local teams
= easier due to working with local people / employees / managers
- Maximize profits in each location with specific targets
Disadvantages poly-centric:
- No economies of Scale ((no mass production)
- High cost of local responsive marketing mix
- Lack of coordination & control
- No knowledge transfer between locations
e.g. Market Research is done seperatly everywhere
EX. Macdonalds (dia 54)
Regio-centric
= the world consists of regions, and they adapt their marketing to each region
- Operational strategies formulated based on the entire region rather than individual countries.
Reasons for regio-centric:
- Easier interaction between local executives transferred to regional head office, and HQ executives transferred to
the regional headquarters.
- Some sensitivity towards local conditions in the host-country
- Can be used as a transitional step where from a purely ethnocentric or polycentric approach to a geocentric
approach
- Transitional step from ethnocentric to polycentric
What are these regions formed on: similarities:
- Market characteristics
- Economic
- Cultural
- Political similarities
Ex regions: BENELUX, EU, … Ex. Coca cola, K3, Tui (dia 57-58)
, Geocentric
= the world is one common market
= offering a global product concept but with local adaptation
What do they do with geocentric marketing: Develop global product concepts without adaptions to the product, but
depends on the industry.
When is this not possible: Within FMCG this is not possible to do so, while in IT this is easier to do (Iphone, Google, )
! HQ & subsidiaries collaborate closely = Hoofdkantoor en dochterondernemingen werken nauw samen
Disadvantages geocentric:
- No specific targeting
- Trend of deglobalization
Globalization vs. Localization
Globalization
= global integration
= recognizing the similarities between international markets and integrating them into the overall global strategy
Localization
= market responsiveness
= responding to each market’s needs and wants
Vb. persil black (dia 63)
Glocalization
= globalization + localization (‘think global, act local’)
= keeping a global strategy, while recognizing the importance of local adaptations/market responsiveness
- Use strengths from home and host country
- Local flexibility + benefits of global integration
- Dynamic interdependence between HQ and local offices
- Through a dynamic interdependence between headquarters and subsidiaries.
- ensuring local flexibility
- ensuring worldwide diffusion of innovation
Ex. Mc donalds: fast food/feeding need but adapted to each country
What is the easy way of international marketing: You just adapt/or even don’t adapt the marketing Mix (product place
price promotion) and put that in an other country.
What is the hard part of international marketing: you need to adapt to the culture, …
Vb. you can install overseas manufacturing activities, having global marketing strategies, with more than 100 local
adaptations. So depending on the amount of adaptations or the amount of standardization the term International
marketing gets a different meaning.
Vb. some people eat earlier in certain countries so restaurants need to adapt to this
Goal of internation marketing: Find international customer needs and satisfy them better than the competition
Important questions:
− Is it 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?
5 decisions of international marketing:
1. Wheter to internationlize
2. What markets to enter
3. Market entry strategies
4. Designing the international marketing plan (IMP)
5. Implementing and coordinating the IMP
Vb. albert hein (dia 29-38)
Internationalization vs Globalization
Globalization
= The change in the world economy to a more interdependent system
= when you can find a product everywhere all over the world
- The trend of firms buying, developing, producing & selling products/services in most countries and regions of the
world.
- Global economic integration of many formerly national economies into one global economy.
Vb. Coca cola, you find it everywhere
Internationalization
= The activity of firms on an international scale and the resulting impact of their activities
= here you are active in 2 or more countries
− International, means between or among nations.
− International can be limited to a region or a few countries
− A response to Globalization
Vb. Albert hein in NL en BE
,Global marketing
= Finding and satisfying global customer needs
What do you need to do with global marketing: Coordinating marketing activities
On what depends you global marketing: Depends on the global maturity. This world view of a firm’s business activities
can be described with the: EPRG framework
EPRG framework
Ethnocentric
Etnos = nation, people
- The home country is superior here so it’s the most relevant
- The own country is highly centralized in the decision-making
- Product is a copy-paste of home
- Organization & technology same as in home country
What are enthnocentric people: they think they are better, more thrustworthy,… than people from other countries
How do they train new people: done by trainers of by the home country
What do they do with the product: they copy past it
Ex. the original cast of K3 → copied for the Dutch market (only later: added a Dutch girl) → “aanpassing van product?”
bewust/onbewust?
Benefits Ethnocentric:
- Cheaper: no cost & efforts needed for adaptation
- High degree of control
- One-way communication
Dissadvantages ethnocentric:
- No full exploitation of opportunities worldwide
- Inefficient: decisionmakers need to travel a lot
- No opportunity to learn from other cultures
Vb. Nissan: They realised their car in the US but the temperatures are diffrent so the crs weren’t adapted to these
temps so there where alot of. Care incidents
,Poly-centric/Multi-domestic
= adapt the marketing mix to the country that you are going to
= Will try to adapt to different conditions in order to maximize profits in each location
= Each country is unique and should be targeted in a different way.
Poly = ‘a lot’, multiple
Domos = home
What does Poly-centric enterprizes recognizes: that there are different conditions for production and marketing in
different locations.
-> so they will try to adapt to different conditions in order to maximize profits in each location
- Each country is unique
- Decision-making: Host country orientation, highly decentralized
- Products & marketing: country-by-country: different conditions for production and marketing in different locations
- Each national market is distinctive (= onderscheidend)
- Focus on differences between home country & foreign country
- Marketing strategy – Localization / adaptation
- Companies’ basic goal is Public acceptance
Benefits Poly-centric:
- Better understanding of local needs
- Better exploitation of local market potential
- Easier targetting with local teams
= easier due to working with local people / employees / managers
- Maximize profits in each location with specific targets
Disadvantages poly-centric:
- No economies of Scale ((no mass production)
- High cost of local responsive marketing mix
- Lack of coordination & control
- No knowledge transfer between locations
e.g. Market Research is done seperatly everywhere
EX. Macdonalds (dia 54)
Regio-centric
= the world consists of regions, and they adapt their marketing to each region
- Operational strategies formulated based on the entire region rather than individual countries.
Reasons for regio-centric:
- Easier interaction between local executives transferred to regional head office, and HQ executives transferred to
the regional headquarters.
- Some sensitivity towards local conditions in the host-country
- Can be used as a transitional step where from a purely ethnocentric or polycentric approach to a geocentric
approach
- Transitional step from ethnocentric to polycentric
What are these regions formed on: similarities:
- Market characteristics
- Economic
- Cultural
- Political similarities
Ex regions: BENELUX, EU, … Ex. Coca cola, K3, Tui (dia 57-58)
, Geocentric
= the world is one common market
= offering a global product concept but with local adaptation
What do they do with geocentric marketing: Develop global product concepts without adaptions to the product, but
depends on the industry.
When is this not possible: Within FMCG this is not possible to do so, while in IT this is easier to do (Iphone, Google, )
! HQ & subsidiaries collaborate closely = Hoofdkantoor en dochterondernemingen werken nauw samen
Disadvantages geocentric:
- No specific targeting
- Trend of deglobalization
Globalization vs. Localization
Globalization
= global integration
= recognizing the similarities between international markets and integrating them into the overall global strategy
Localization
= market responsiveness
= responding to each market’s needs and wants
Vb. persil black (dia 63)
Glocalization
= globalization + localization (‘think global, act local’)
= keeping a global strategy, while recognizing the importance of local adaptations/market responsiveness
- Use strengths from home and host country
- Local flexibility + benefits of global integration
- Dynamic interdependence between HQ and local offices
- Through a dynamic interdependence between headquarters and subsidiaries.
- ensuring local flexibility
- ensuring worldwide diffusion of innovation
Ex. Mc donalds: fast food/feeding need but adapted to each country
