Les 1. What is international marketing?
International marketing The application of marketing principles to more than one
country.
● Find international customer needs and satisfy them better than the competition.
● Important questions:
○ Is it realistic?
○ Do you have what it takes? mainly money
○ Are you doing it for the right reasons?
○ Do you know what you’re getting into in terms of competition?
5 decisions
Main decisions to make as a company before wo go international.
1. Whether to internationalize
2. What markets to enter
3. Market entry strategies
4. Designing the international marketing plan (IMP)
5. Implementing & coordinating the IMP
Examples;
Speculoos/biscoff spread
Pidy Gourmet
Case: Albert Heijn in Belgium
2011: First store in Brasschaat
Why did they start there?
- Easy for distribution
Positioning
- Cheaper
- A lot of promotion
- Focus on smaller portions
- Typical dutch products
Luc de Baerts – EX CEO AH Belgie: a combo of:
- Board product offer from the Nederlands
- Response to the local needs of the Flemisch consumer
- Accentuate Dutch origins
Quality – price – service = AH
1
,2
,Assortiment
Do you know any cultural differences?
Eetgewoontes, bier
Vb. Vleeskroket
Extensive market research
- 300 researchers in test panels in Antwerp
- Database of what Belgian households buy (GFK)
(what, where,… Average Belgian fam
90% same assortiment as in Holland
- Typic Dutch prod
- 1500 Belgian products
International business
Internationalization vs globalization
Globalization
The change in the world economy to a more interdependent system
The trend of firms buying, developing, producing & selling producs/ services in most
countries and regions of the world.
Global economic integration of many formerly national economies into one global economy.
Internationalization
The activity of firms on an scale and the resulting impact on their activitieies
International, means between of among nations. International can be limited to a region of a
few countries
A response to globalization
Global marketing
● Finding and satisfying global customer needs
● Coordinating marketing activities
● Depends on the global maturity. This world view of a firm’s business activities can be
described with the:
“EPRG framework”
Ethnocentric
● Home country is ‘superior’
● Its needs most relevant
● Highly centralized decision-making
● Product is a copy-paste of home
● Organization & technology same as in home country
● Etnos = nation, people
Benefits
● Cheaper: no cost & efforts needed for adaptation
● High degree of control
● One-way communication
3
, Downsides
● No full exploitation of opportunities worldwide
● Inefficient: decisionmakers need to travel a lot
● No opportunity to learn from other cultures
Example Nissan
Mistake: they didn’t adapt anything
Example Bosch
Poly-centric/Multi-domestic
Poly = ‘a lot’, multiple
Domos = home
● ‘Each country is unique’, Each national market is distinctive
● Decision-making: Host country orientation, highly decentralized
● Products & marketing: country-by-country: different conditions for production and
marketing in different locations
● Focus on differences between home country & foreign country
● Marketing strategy – Localization / adaptation
● Companies’ basic objective – Public acceptance
● Will try to adapt to different conditions in order to maximize profits in each
location
Benefits
● Better understanding of local needs
● Better exploitation of local market potential
● Easier targetting with local teams
● Maximize profits in each location with specific targets
Downsides
● No economies of Scale
● High cost of local responsive marketing mix
● Lack of coordination & control
● No knowledge transfer between locations
e.g. Market Research
Example MCDonalds
● McDonald’s strategy to serve non-beef burgers to its Indian customers can be
defined as a polycentric orientation
● Each subsidiary has its own price and promotion policy
● Note: Where possible Mc Donald’s will try to standardize (reduce cost), but always
keep an eye on the local market needs
4
International marketing The application of marketing principles to more than one
country.
● Find international customer needs and satisfy them better than the competition.
● Important questions:
○ Is it realistic?
○ Do you have what it takes? mainly money
○ Are you doing it for the right reasons?
○ Do you know what you’re getting into in terms of competition?
5 decisions
Main decisions to make as a company before wo go international.
1. Whether to internationalize
2. What markets to enter
3. Market entry strategies
4. Designing the international marketing plan (IMP)
5. Implementing & coordinating the IMP
Examples;
Speculoos/biscoff spread
Pidy Gourmet
Case: Albert Heijn in Belgium
2011: First store in Brasschaat
Why did they start there?
- Easy for distribution
Positioning
- Cheaper
- A lot of promotion
- Focus on smaller portions
- Typical dutch products
Luc de Baerts – EX CEO AH Belgie: a combo of:
- Board product offer from the Nederlands
- Response to the local needs of the Flemisch consumer
- Accentuate Dutch origins
Quality – price – service = AH
1
,2
,Assortiment
Do you know any cultural differences?
Eetgewoontes, bier
Vb. Vleeskroket
Extensive market research
- 300 researchers in test panels in Antwerp
- Database of what Belgian households buy (GFK)
(what, where,… Average Belgian fam
90% same assortiment as in Holland
- Typic Dutch prod
- 1500 Belgian products
International business
Internationalization vs globalization
Globalization
The change in the world economy to a more interdependent system
The trend of firms buying, developing, producing & selling producs/ services in most
countries and regions of the world.
Global economic integration of many formerly national economies into one global economy.
Internationalization
The activity of firms on an scale and the resulting impact on their activitieies
International, means between of among nations. International can be limited to a region of a
few countries
A response to globalization
Global marketing
● Finding and satisfying global customer needs
● Coordinating marketing activities
● Depends on the global maturity. This world view of a firm’s business activities can be
described with the:
“EPRG framework”
Ethnocentric
● Home country is ‘superior’
● Its needs most relevant
● Highly centralized decision-making
● Product is a copy-paste of home
● Organization & technology same as in home country
● Etnos = nation, people
Benefits
● Cheaper: no cost & efforts needed for adaptation
● High degree of control
● One-way communication
3
, Downsides
● No full exploitation of opportunities worldwide
● Inefficient: decisionmakers need to travel a lot
● No opportunity to learn from other cultures
Example Nissan
Mistake: they didn’t adapt anything
Example Bosch
Poly-centric/Multi-domestic
Poly = ‘a lot’, multiple
Domos = home
● ‘Each country is unique’, Each national market is distinctive
● Decision-making: Host country orientation, highly decentralized
● Products & marketing: country-by-country: different conditions for production and
marketing in different locations
● Focus on differences between home country & foreign country
● Marketing strategy – Localization / adaptation
● Companies’ basic objective – Public acceptance
● Will try to adapt to different conditions in order to maximize profits in each
location
Benefits
● Better understanding of local needs
● Better exploitation of local market potential
● Easier targetting with local teams
● Maximize profits in each location with specific targets
Downsides
● No economies of Scale
● High cost of local responsive marketing mix
● Lack of coordination & control
● No knowledge transfer between locations
e.g. Market Research
Example MCDonalds
● McDonald’s strategy to serve non-beef burgers to its Indian customers can be
defined as a polycentric orientation
● Each subsidiary has its own price and promotion policy
● Note: Where possible Mc Donald’s will try to standardize (reduce cost), but always
keep an eye on the local market needs
4
