lOMoARcPSD|11183513
1. Introduction
The application of marketing principles to more than one country
• Find international customer needs and satisfy them better than the competition
• Shared benefits, same technology, similarities
5 decisions
1. Whether to internationalize
2. What markets to enter
3. Market entry strategies
4. Designing the International Marketing Plan (IMP)
5. Implementing & coordinating the IM
E.g.: Case Albert Heijn merging with Delhaize
1. International Business
1.1 Internationalization vs. Globalization
Globalization Internationalization
The activity of firms on an international
The change in the world economy to a more scale and the resulting impact of their
interdependent system activities
• The trend of firms buying, developing, • International, means between or
producing & selling products/services in among nations.
most countries and regions of the world. • International can be limited to a
• Global economic integration of many region or a few countries
formerly national economies into one • A response to Globalization
global economy.
a) Global marketing
• Finding and satisfying global customer needs
• Coordinating marketing activities
• Depends on the global maturity. This world vieuw of a firm business activities can be
described with the: ERPG framework
b) EPRG Framework
ETHNOCENTRIC
Ethnocentr
Ethnos = nation, people Polycentr
ic
• Home country is ‘superior’
ic
Regiocentr 1
Geocentri
ic
c
, lOMoARcPSD|11183513
• Its needs most relevant
• Highly centralized decision-making
• Product is a copy-paste of home
• Organization & technology same as in home country
Benefits:
• Cheaper: no cost & efforst needed for adaptation
• High degree of control
• One-way communication
Downsides:
• No full exploitation of opportunities worldwide
• Inefficient: decisionmakers need to travel a lot
• No opportunity to learn from other cultures
E.g.: Nissan – Cars are designed for Japanese mild winters so cars where difficult to start during
the cold US winter months.
POLYCENTRIC
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
• Focus on differences between home country & foreign country
• Marketing strategy – Localization / adaptation
• Will try to adapt to different conditions to maximize profits in each location
2
, lOMoARcPSD|11183513
Benefits
• Better understanding of local needs
• 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
E.g.: Mc Donalds – their strategy to serve non-beef burgers to its Indian customers can be
termed as polycentric.
REGIOCENTRIC
• The world consists of regions
• These regions will be based on similarities, e.g. BENELUX market, EU, Nafta
• Operational strategies formulated based on the entire region rather than individual
countries.
• Reasons:
o Easier interaction
o Some sensitivity towards local
o Transitional step
E.g.: Coca Cola – they use different regions but their ‘main’ message stays the same
GIOCENTRIC
• The world is one common market
• Develop global product concepts without adaptions to the product, depends on the
industry
• HQ & subsidiaries collaborate closely
• Not possible in FMCG, easier in technology sector Downsides:
• no specific targeting, trend of deglobalization
E.g.: Apple, Google
3
, lOMoARcPSD|11183513
1.2 Globalization vs. Localization
Localization Globalization
• Global integration
• Market responsiveness • Recognizing similarities between
• Responding to each market’s needs and international markets &
wants integrating them into global
strategy
Reasons for globalization:
Reasons for localization: • Removal trade barriers
• Cultural differences • Relationship management
• Regionalism/ protectionism • Standardized technology
• Deglobalization trend
Globalization + localization = Glocalization -> think global, act local
2. Decision to internationalize
1. Global Marketing & Management style (LSE vs. SME)
Five stages in internationalizing & developing the Global Marketing Plan
Step Step
Step
Step Step 4
Designin 5
Impementin
1
Decision 2
Market 3
Market global
ga coordinati
g&
internationa
to
selection entry progr
marketing Global
ng Mark.
lize
am Plan
4
1. Introduction
The application of marketing principles to more than one country
• Find international customer needs and satisfy them better than the competition
• Shared benefits, same technology, similarities
5 decisions
1. Whether to internationalize
2. What markets to enter
3. Market entry strategies
4. Designing the International Marketing Plan (IMP)
5. Implementing & coordinating the IM
E.g.: Case Albert Heijn merging with Delhaize
1. International Business
1.1 Internationalization vs. Globalization
Globalization Internationalization
The activity of firms on an international
The change in the world economy to a more scale and the resulting impact of their
interdependent system activities
• The trend of firms buying, developing, • International, means between or
producing & selling products/services in among nations.
most countries and regions of the world. • International can be limited to a
• Global economic integration of many region or a few countries
formerly national economies into one • A response to Globalization
global economy.
a) Global marketing
• Finding and satisfying global customer needs
• Coordinating marketing activities
• Depends on the global maturity. This world vieuw of a firm business activities can be
described with the: ERPG framework
b) EPRG Framework
ETHNOCENTRIC
Ethnocentr
Ethnos = nation, people Polycentr
ic
• Home country is ‘superior’
ic
Regiocentr 1
Geocentri
ic
c
, lOMoARcPSD|11183513
• Its needs most relevant
• Highly centralized decision-making
• Product is a copy-paste of home
• Organization & technology same as in home country
Benefits:
• Cheaper: no cost & efforst needed for adaptation
• High degree of control
• One-way communication
Downsides:
• No full exploitation of opportunities worldwide
• Inefficient: decisionmakers need to travel a lot
• No opportunity to learn from other cultures
E.g.: Nissan – Cars are designed for Japanese mild winters so cars where difficult to start during
the cold US winter months.
POLYCENTRIC
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
• Focus on differences between home country & foreign country
• Marketing strategy – Localization / adaptation
• Will try to adapt to different conditions to maximize profits in each location
2
, lOMoARcPSD|11183513
Benefits
• Better understanding of local needs
• 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
E.g.: Mc Donalds – their strategy to serve non-beef burgers to its Indian customers can be
termed as polycentric.
REGIOCENTRIC
• The world consists of regions
• These regions will be based on similarities, e.g. BENELUX market, EU, Nafta
• Operational strategies formulated based on the entire region rather than individual
countries.
• Reasons:
o Easier interaction
o Some sensitivity towards local
o Transitional step
E.g.: Coca Cola – they use different regions but their ‘main’ message stays the same
GIOCENTRIC
• The world is one common market
• Develop global product concepts without adaptions to the product, depends on the
industry
• HQ & subsidiaries collaborate closely
• Not possible in FMCG, easier in technology sector Downsides:
• no specific targeting, trend of deglobalization
E.g.: Apple, Google
3
, lOMoARcPSD|11183513
1.2 Globalization vs. Localization
Localization Globalization
• Global integration
• Market responsiveness • Recognizing similarities between
• Responding to each market’s needs and international markets &
wants integrating them into global
strategy
Reasons for globalization:
Reasons for localization: • Removal trade barriers
• Cultural differences • Relationship management
• Regionalism/ protectionism • Standardized technology
• Deglobalization trend
Globalization + localization = Glocalization -> think global, act local
2. Decision to internationalize
1. Global Marketing & Management style (LSE vs. SME)
Five stages in internationalizing & developing the Global Marketing Plan
Step Step
Step
Step Step 4
Designin 5
Impementin
1
Decision 2
Market 3
Market global
ga coordinati
g&
internationa
to
selection entry progr
marketing Global
ng Mark.
lize
am Plan
4
