This summary covers everything that was said in the lesson. The powerpoint has been kept aside to obtain the same information and the book has also been included. There are many examples. It is in English, though.
Internationale marketing
Les 1
5 step approach
1. Decision whether to internationalize
2. Decision wich markets to enter
3. Market entry strategies
4. Design of the global marketing program (4Ps)
5. Implementation and coordination of the international marketing program
International marketing
- Can and should you internationalize?
- Which market entry strategies will you use?
- Which market to enter?
- How will you design your global marketing programme?
- How will you implement and coordinate your global marketing programme?
Global vs regular marketing = scope of activities are outside the home-country market
- Market orientation
o Existing markets
Product orientation
Existing products: market penetration strategy
New products: product development strategy
o New markets – here is international marketing
Existing products: market development strategy
New products: diversifaction strategy
Why are New markets interesting?
- Grow the business
- Target audiance
- Knowledge
Importante of going global:
- For US compagnies, 75% of total world market for goods and services is outside the country.
- For Japanese companies 90% of total world market for goods and services is outside the
country.
- 94% of market potential outside of Germany for its companies even though it is the largets
EU market.
What is globalization?
- A growing interdependence of national economies.
- It involves customers, producers, suppliers and governments in different markets.
Global marketing
- Reflects the trend of firms selling and distributing products and services in many countries
around the world
o Why and how?
Governments reducing trade and investment barriers
Taxs on import (electric cars from China)
Firms manufacture in multiple countries
1
, Foreign firms increasingly competing in domestic markets
Forces affecting global integration & global marketing
- Multilateral trade agreements
- Converging market needs, wants and the information revolution
- Transportation and communication improvements
- Product development costs
Driving forces affecting global integration and global marketing
- Leverage
o Experience transfers
o Scale economies
o Resource utilization
o Global strategy
Restraining forces affecting global integration and global marketing
- Management myopia
- Organizational culture
- National controls
o Buy local
o Social: modern slavery
- Opposition to globalization
The bigger the better? —> not necessarily
The global paradox
- John naisbett predicted: the bigger and more open the world economy becomes, the more
small and middle sized companies will dominate.
- Moved from economies of scale to diseconomies of scale.
- The smaller and speedier players will prevail on a much expanded field.
Results of ‘the global paradox’?
- The differences in the global marketing behaviour between small and big companies are
disappearing = convergence
The need for competitive advantage
- Going international = expensive in terms of money, time and commitment
- Must generate added value for the company beyond extra sales
- The company needs to gain a competitive advantage by going international
Key? A succesfull global marketing programme
- Think globally, act locally: combination of coordination and local adaptions
Decision model in global marketing
- Purpose of global marketing plan = create sustainable competitive advantages in het global
marketplace.
- 5 – stage decision model = systematized approach to developing a global marketing plan
1. The decision whether to internationalize
2. Deciding wich markets to enter
3. Market entry strategies
4. Designing the global marketing programme
5. Implementing and coordinating the global marketing programme
2
, The decision whether to internationalize – should the company internationalize at all?
- Globalization = trend of firms buying, developing, producing and selling products and
services in most countries and regions of the world.
- International expansion:
o New and potentially more profitable markets
o Helpt increase competitiveness
o Access to new product ideas, innovations and latest technology
- BUT: internationalization is not likely to be succesful unless the firm prepares in advance.
- Solberg’s 9 strategic windows framework:
o Determines conditions under which a company should ‘stay at home’ of ‘strengthen
the global position’ based on 2 dimensions:
Industry globalism:
Degree of industry globalism mainly determined by international
marketing environment
Strategic behavior of firm depends on the international competitive
structure within an industry.
Preparedness for internationalization:
Depends on firm’s ability to carry out strategies in international
marketplace i.e actual skills in international business operations.
Question: give an example of a business in every single window.
Development of the global marketing concept
Global marketing = the firms commitment
- To coordinate its marketing activities across national boundaries.
- In order to find and satisy global customer needs.
- Better than the competition.
This implies that the firm is able to:
- Develop a global marketing strategy, based on similarities and differences between markets.
- Exploit knowledge of headquarters (home organization) through worldwide diffusion
(learning) and adaptations.
- Transfer knowledge and best practices from any of its markets and use them in other
international markets.
There is not just one way of doing it:
- Different views of the business organization (1)
3
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