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international marketing summary IB
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International MarketingE.A
INTERNATIONAL MARKETING
PART 1: The decision whether to internationalize
CHAPTER 1 – GLOBAL MARKETING IN THE FIRM
The five-stage decision model in global marketing
LSEs (large-scale Firms with more than 250
enterprises employees. Although LSEs
account for less than 1% of
companies, almost 1/3 of all
private sector jobs in the EU are
provided by LSEs
SMEs (small and Occur commonly in the EU and
medium-sized in other regional economic
enterprises) blocks. The EU categorizes
companies with fewer than 50
employees as ‘small’ and those
with fewer than 250 as
‘medium’. In the EU, SMEs
comprise around 99% of firms
LSEs SMEs
Resources Many resources Limited resources
Internalization of resources Externalization of resources
Coordination of: personnel, (outsourcing of resources)
financing, market knowledge
Formation of strategy/ Deliberate strategy formation Emergent strategy formation
decision-making process Adaptive decision-making mode Entrepreneurial decision-making
in small incremental steps Owner / manager is directly and
personally involved and dominant
in all decision-making
Organization Formal / hierarchical Informal
Independent of one person Owner has the power/charisma to
inspire and control organization
Risk-taking Mainly risk-averse Sometimes risk-taking sometimes
Focus on long-term opportunities risk averse
Focus on short-term opportunities
Flexibility Low High
Take advantage of economies Yes Only limited
of scale and economies of
scope
Use of information resources Use of advanced techniques: Information gathering in informal
databases, external consultancy, and inexpensive way: internal
internet resources, face-to-face
communication
1
, International Marketing
E.A
Intended and emergent strategy Incremental change and strategic drift
Intended strategy -> planned strategy
Emergent strategy -> not planned strategy
Economies of scale Accumulated volume in production, resulting in
lower cost price per unit
Economies of scope Reusing a resource from one business / country
in additional businesses or countries
Globalization Reflects the trend of firms buying, developing,
producing and selling products and services in
most countries and regions of the world
Internationalization Doing business in many countries of the world,
but often limited to a certain region
Nine strategic windows
Industry globalism
degree of industry globalism
depends on the international
competitive structure within an
industry.
- Global: many interdependencies
between markets, customers and
suppliers and the industry is
dominated by a few large, powerful
players
- Local: represents multidomestic
market environment, where
Preparedness for internationalization markets exist independently of one
Dependent on the firm’s ability to carry out strategies in another
the international market place
- Mature: well-prepared company
- Immature: not well-prepared company
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, International Marketing
E.A
EPRG framework
1. Ethnocentric : home country is superior and the needs of the home country are most relevant.
Controls are highly centralized, organization & technology will be the same as in the home country
2. Polycentric : multidomestic, each country is unique and should therefore be targeted in a different
way. Recognizes different conditions in countries and tries to adapt to this. Control is decentralized
3. Regiocentric : world consists of regions. Firm tries to integrate and coordinate its marketing
program within regions, but not across them
4. Geocentric : global. The world gets smaller and smaller. Firm may offer global product concepts,
but with local adaption (think global, act local)
Global marketing Firm’s commitment to coordinate its marketing
activities across national boundaries in order to
find and satisfy global customer needs better than
the competition
➢ Develop global marketing strategy
➢ Exploit the knowledge of the headquarters through world-wide diffusion and adaptations
➢ Transfer knowledge and ‘best practices’ from its markets and use them in other markets
Glocalization The development and selling of products or
services of products or services intended for the
global market, but adapted to suit local culture
and behavior (think global, act local)
The principle of transferring
knowlegde and learning across borders:
Global integration Recognizing the similarities between international
markets and integrating them into the overall
global strategy
Major drivers for shift towards global integration:
➢ Removal of trade barriers (deregulation), global accounts
or customers, relationship management, standardized
worldwide technology, worldwide markets, global village,
worldwide communication, global cost drivers
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, International Marketing
E.A
Market responsiveness Responding to each market’s needs and wants
➢ Cultural differences
➢ Regionalism / protectionism
➢ Deglobalization
Artificial Intelligence (AI) Use of machine learning in combination with
human creativity to create a more engaging
customer experience on an individual level, in
order to attract, engage and retain customer’s
interest and business
IT connections between back-and front-office in the information value chain towards customers
CHAPTER 2 – INITIATION OF INTERNATIONALIZATION
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