International marketing – summary
What is international marketing?
“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.”
The application of marketing principles to more than one country
- Find international customer needs and satisfy them better than the
competition.
- Important questions:
o Is it realistic?
§ Requires a lot of money, time and dedication
o Do you have what it takes?
o Are you doing it for the right reasons?
o Do you know what you’re getting into in terms of competition?
5 decisions:
1. Whether to internationalize
2. What markets to enter
3. Market entry strategies
4. Designing commercial plan
5. Implementing & coordinating
Chapter 1: global marketing
Views on doing international business
1
Tessy Biebouw International Marketing
,How does ‘company management’ look at internationalization?
- Goal: find and satisfy global customer needs
- Will have to coordinate marketing activities
- Different management views/orientations:
“EPRG framework”
Ethnocentric
Polycentric
Regiocentric Geocentric
Ethnocentric companies:
- Etnos = nation, people
- Home country is ‘superior’
- Needs of domestic market are most relevant
- Highly centralized decision-making (HQ-power)
- Product is a copy-paste of home
- Organization & technology same as in home country
+ -
Cheaper: no cost & efforts needed for No full exploitation of opportunities
adaptation worldwide
High degree of control Inefficient: decision makers need to
One-way communication travel a lot
No opportunity to learn from other
cultures
Examples: Nissan
- Nissan brought their Japanese cars to America, but they forgot that the
winters in America are much colder then in Japan, and the cars broke down.
Example: Harley Davidson
- Is by most definitions an ethnocentric company
- Its an ‘all-American’ brand
- Holding a multinational appeal
2
Tessy Biebouw International Marketing
,Polycentric companies
- Poly = ‘a lot’, multiple
- ‘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
- Marketing strategy = Localization & Adaptation
- Companies’ basic objective: ‘Public acceptance within the host country’
+ -
Better understanding of local needs No economies of scale (= increasing the
Better exploitation of local market output, could decrease the costs)
potential High cost of local responsive marketing
Easier targeting with local teams mix
Maximize profits in each location with Lack of coordination & control (is
specific targets everyone following the rules?)
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
Example: Unilever
- Unilever’s deodorant REXONA has more than 39# packages and even #
brand names
Regiocentric companies
- The worlds consists of regions
- These regions will be based on similarities, e.g. BENELUX market, EU, Nafta
- Strategies formulated based on the entire region rather than individual
countries.
- Reasons:
o Saves cost
o Some sensitivity towards local
o Transitional step towards polycentric
Example: IKEA Example: Coca Cola
Geocentric companies
- ‘the world is one common market’
- Develop global product concepts without adaptions to the product, but
depends on the industry.
- Head quarter & subsidiaries collaborate
- Not possible in FMCG (fast moving consumer goods), while easier in technology
sector (iPhone, Google, Boeing)
Examples: Apple, Google, Boeing
3
Tessy Biebouw International Marketing
, 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
Polycentric company!
Globalization + localization = “GLOCALIZATION” ® think global, act local
Reasons for GLOBALIZATION Reasons for LOCALIZATION
- Removal of trade barriers - Cultural differences
- Relationship management - Regionalism / protectionism
- Standardized technology - Deglobalization trend
- Worldwide markets
- Cultural homogenization
- Worldwide communication
- Global cost drivers
Glocalization
“The value chain function
should be carried out where
there is the highest
competence and the
greatest cost-effectiveness
and this is not necessarily at
head office.” (Bellin and
Pham, 2007)
4
Tessy Biebouw International Marketing
What is international marketing?
“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.”
The application of marketing principles to more than one country
- Find international customer needs and satisfy them better than the
competition.
- Important questions:
o Is it realistic?
§ Requires a lot of money, time and dedication
o Do you have what it takes?
o Are you doing it for the right reasons?
o Do you know what you’re getting into in terms of competition?
5 decisions:
1. Whether to internationalize
2. What markets to enter
3. Market entry strategies
4. Designing commercial plan
5. Implementing & coordinating
Chapter 1: global marketing
Views on doing international business
1
Tessy Biebouw International Marketing
,How does ‘company management’ look at internationalization?
- Goal: find and satisfy global customer needs
- Will have to coordinate marketing activities
- Different management views/orientations:
“EPRG framework”
Ethnocentric
Polycentric
Regiocentric Geocentric
Ethnocentric companies:
- Etnos = nation, people
- Home country is ‘superior’
- Needs of domestic market are most relevant
- Highly centralized decision-making (HQ-power)
- Product is a copy-paste of home
- Organization & technology same as in home country
+ -
Cheaper: no cost & efforts needed for No full exploitation of opportunities
adaptation worldwide
High degree of control Inefficient: decision makers need to
One-way communication travel a lot
No opportunity to learn from other
cultures
Examples: Nissan
- Nissan brought their Japanese cars to America, but they forgot that the
winters in America are much colder then in Japan, and the cars broke down.
Example: Harley Davidson
- Is by most definitions an ethnocentric company
- Its an ‘all-American’ brand
- Holding a multinational appeal
2
Tessy Biebouw International Marketing
,Polycentric companies
- Poly = ‘a lot’, multiple
- ‘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
- Marketing strategy = Localization & Adaptation
- Companies’ basic objective: ‘Public acceptance within the host country’
+ -
Better understanding of local needs No economies of scale (= increasing the
Better exploitation of local market output, could decrease the costs)
potential High cost of local responsive marketing
Easier targeting with local teams mix
Maximize profits in each location with Lack of coordination & control (is
specific targets everyone following the rules?)
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
Example: Unilever
- Unilever’s deodorant REXONA has more than 39# packages and even #
brand names
Regiocentric companies
- The worlds consists of regions
- These regions will be based on similarities, e.g. BENELUX market, EU, Nafta
- Strategies formulated based on the entire region rather than individual
countries.
- Reasons:
o Saves cost
o Some sensitivity towards local
o Transitional step towards polycentric
Example: IKEA Example: Coca Cola
Geocentric companies
- ‘the world is one common market’
- Develop global product concepts without adaptions to the product, but
depends on the industry.
- Head quarter & subsidiaries collaborate
- Not possible in FMCG (fast moving consumer goods), while easier in technology
sector (iPhone, Google, Boeing)
Examples: Apple, Google, Boeing
3
Tessy Biebouw International Marketing
, 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
Polycentric company!
Globalization + localization = “GLOCALIZATION” ® think global, act local
Reasons for GLOBALIZATION Reasons for LOCALIZATION
- Removal of trade barriers - Cultural differences
- Relationship management - Regionalism / protectionism
- Standardized technology - Deglobalization trend
- Worldwide markets
- Cultural homogenization
- Worldwide communication
- Global cost drivers
Glocalization
“The value chain function
should be carried out where
there is the highest
competence and the
greatest cost-effectiveness
and this is not necessarily at
head office.” (Bellin and
Pham, 2007)
4
Tessy Biebouw International Marketing
