INTERNATIONAL MARKETING
MANAGEMENT
Y50744 ANNELIES COSTERS
,Practical matters
• Lectures & group presentations on campus (unless there is major change in the regulation)
• Occasionally fully online if necessary (e.g., strike, injury etc.)
• Study material:
o Lecture slides
o List of academic papers (see list at the end of each session)
o No book
• Exam:
o Closed book
o Mix of open, closed questions and multiple choice
Group work
• Discuss the international marketing strategy of an international company
• Develop a marketing plan to launch a selected EXISTING product/brand into a non-Western
country (eg: China, India, Brazil,…)
• Select an international company per group:
o International:
• Present in several non-Western European countries
• All types of companies possible: small/big, B-to-C/B-to-B,
products/services/retail
o Make sure there is enough information available
o Contact persons could be helpful
Evaluation
• Weighted average of:
o Exam grade: 60% of the total grade (individual grade)
o Grade for the end presentation: 10% of the total grade (group grade)
• Intermediate presentations during the course (see schedule) are not
graded but not presenting leads to a malus for the final presentation
o Grade for the end report: 30% of the total grade (group grade)
Structure of a typical session
• Lectures – traditional sessions
• Group presentations – more active sessions
o Receive feedback from me
o Also opportunity to ask questions on the material
1
,Table of Contents
Practical matters .....................................................................................................1
Group work ..............................................................................................................1
Assignment .............................................................................Error! Bookmark not defined.
Final presentation (17/12) and report (23/12) ..............................Error! Bookmark not defined.
Evaluation ..................................................................................................................... 1
Structure of a typical session ......................................................................................... 1
1. Introduction to international marketing ............................................................ 10
1.1 evolution of global marketing ..............................................................................10
Globalization is not a new phenomenon .......................................................................................... 10
Drivers of globalization ................................................................................................................... 11
Intra and extra-regional exports ....................................................................................................... 12
Leading exporters ........................................................................................................................... 13
Leading importers .......................................................................................................................... 13
China Exports by Importing Region .................................................................................................. 13
Marketing Globalization .................................................................................................................. 14
The evolution of international marketing .......................................................................................... 14
The US supremacy (Years ´50 - ´60) ................................................................................................ 14
Period of Kotler (early ´70s) ............................................................................................................ 15
Glocalization ................................................................................................................................. 15
1.2 standardization versus adaptation ......................................................................17
Euro Disney/Disneyland Paris ......................................................................................................... 18
Standardization versus localization ................................................................................................. 18
Standardization perspective (Levitt 1983) ........................................................................................ 18
Benefits of standardization?............................................................................................................ 19
The French “Savoir-Vivre”................................................................................................................ 19
German cars: reliability .................................................................................................................. 19
Adaptation/localization perspective ................................................................................................ 20
Benefits of adaptation?................................................................................................................... 20
Marketing program standardization: a cross- country exploration (Oszomer and Simonin 2004) .......... 20
Conceptual framework ................................................................................................................... 21
Conclusion .................................................................................................................................... 21
2. Culture ........................................................................................................... 22
2.1 What is culture? .................................................................................................22
Cultural differences........................................................................................................................ 22
What is culture? ............................................................................................................................. 22
Example: Brazil .............................................................................................................................. 22
Culture is learned ........................................................................................................................... 23
Different elements of culture .......................................................................................................... 23
2
, Different elements of culture .......................................................................................................... 23
Language ....................................................................................................................................... 24
Social interactions ......................................................................................................................... 24
Aesthetics ..................................................................................................................................... 25
Religion ......................................................................................................................................... 25
Values ........................................................................................................................................... 25
Importance of culture for global marketing ...................................................................................... 25
2.2 Cultural classifications ......................................................................................26
Hofstede’s Cultural Dimensions ...................................................................................................... 26
Power Distance .............................................................................................................................. 26
Individualism vs. Collectivism ......................................................................................................... 28
Uncertainty Avoidance ................................................................................................................... 30
Masculinity vs. Femininity ............................................................................................................... 31
Two extra dimensions ..................................................................................................................... 31
Long vs. Short-Term Orientation ...................................................................................................... 32
Indulgence (versus restrained) ........................................................................................................ 33
Limitations of Hofstede’s Values ..................................................................................................... 34
Schwartz’s Human Values .............................................................................................................. 34
High and Low-Context Cultures (Hall 1976)...................................................................................... 35
Importance of context culture ......................................................................................................... 35
2.3 Marketing implications of culture ........................................................................36
Divergence or convergence? (De mooij and Hofstede 2002) .............................................................. 36
Private label consumption .............................................................................................................. 36
Luxury articles and masculinity ....................................................................................................... 36
Steenkamp et al.1999 ..................................................................................................................... 37
Impact individual and cultural values on innovativeness (Steenkamp et al. 1999) ............................... 37
..................................................................................................................................................... 37
2.4 International segmentation ................................................................................39
Why segment? ............................................................................................................................... 39
Segmentation ................................................................................................................................ 39
Segmentation Level ...................................................................................................................... 41
Segmentation Bases ..................................................................................................................... 41
Segmentation Methods................................................................................................................. 42
2.5 International targeting and positioning ................................................................43
The STP approach .......................................................................................................................... 43
Targeting ........................................................................................................................................ 43
Positioning ..................................................................................................................................... 44
3. International entry ........................................................................................... 46
3.1 Marketing selection ...........................................................................................46
Internationalization as a source of growth ........................................................................................ 46
Firm internationalization can be… ................................................................................................... 46
Country selection........................................................................................................................... 47
3
MANAGEMENT
Y50744 ANNELIES COSTERS
,Practical matters
• Lectures & group presentations on campus (unless there is major change in the regulation)
• Occasionally fully online if necessary (e.g., strike, injury etc.)
• Study material:
o Lecture slides
o List of academic papers (see list at the end of each session)
o No book
• Exam:
o Closed book
o Mix of open, closed questions and multiple choice
Group work
• Discuss the international marketing strategy of an international company
• Develop a marketing plan to launch a selected EXISTING product/brand into a non-Western
country (eg: China, India, Brazil,…)
• Select an international company per group:
o International:
• Present in several non-Western European countries
• All types of companies possible: small/big, B-to-C/B-to-B,
products/services/retail
o Make sure there is enough information available
o Contact persons could be helpful
Evaluation
• Weighted average of:
o Exam grade: 60% of the total grade (individual grade)
o Grade for the end presentation: 10% of the total grade (group grade)
• Intermediate presentations during the course (see schedule) are not
graded but not presenting leads to a malus for the final presentation
o Grade for the end report: 30% of the total grade (group grade)
Structure of a typical session
• Lectures – traditional sessions
• Group presentations – more active sessions
o Receive feedback from me
o Also opportunity to ask questions on the material
1
,Table of Contents
Practical matters .....................................................................................................1
Group work ..............................................................................................................1
Assignment .............................................................................Error! Bookmark not defined.
Final presentation (17/12) and report (23/12) ..............................Error! Bookmark not defined.
Evaluation ..................................................................................................................... 1
Structure of a typical session ......................................................................................... 1
1. Introduction to international marketing ............................................................ 10
1.1 evolution of global marketing ..............................................................................10
Globalization is not a new phenomenon .......................................................................................... 10
Drivers of globalization ................................................................................................................... 11
Intra and extra-regional exports ....................................................................................................... 12
Leading exporters ........................................................................................................................... 13
Leading importers .......................................................................................................................... 13
China Exports by Importing Region .................................................................................................. 13
Marketing Globalization .................................................................................................................. 14
The evolution of international marketing .......................................................................................... 14
The US supremacy (Years ´50 - ´60) ................................................................................................ 14
Period of Kotler (early ´70s) ............................................................................................................ 15
Glocalization ................................................................................................................................. 15
1.2 standardization versus adaptation ......................................................................17
Euro Disney/Disneyland Paris ......................................................................................................... 18
Standardization versus localization ................................................................................................. 18
Standardization perspective (Levitt 1983) ........................................................................................ 18
Benefits of standardization?............................................................................................................ 19
The French “Savoir-Vivre”................................................................................................................ 19
German cars: reliability .................................................................................................................. 19
Adaptation/localization perspective ................................................................................................ 20
Benefits of adaptation?................................................................................................................... 20
Marketing program standardization: a cross- country exploration (Oszomer and Simonin 2004) .......... 20
Conceptual framework ................................................................................................................... 21
Conclusion .................................................................................................................................... 21
2. Culture ........................................................................................................... 22
2.1 What is culture? .................................................................................................22
Cultural differences........................................................................................................................ 22
What is culture? ............................................................................................................................. 22
Example: Brazil .............................................................................................................................. 22
Culture is learned ........................................................................................................................... 23
Different elements of culture .......................................................................................................... 23
2
, Different elements of culture .......................................................................................................... 23
Language ....................................................................................................................................... 24
Social interactions ......................................................................................................................... 24
Aesthetics ..................................................................................................................................... 25
Religion ......................................................................................................................................... 25
Values ........................................................................................................................................... 25
Importance of culture for global marketing ...................................................................................... 25
2.2 Cultural classifications ......................................................................................26
Hofstede’s Cultural Dimensions ...................................................................................................... 26
Power Distance .............................................................................................................................. 26
Individualism vs. Collectivism ......................................................................................................... 28
Uncertainty Avoidance ................................................................................................................... 30
Masculinity vs. Femininity ............................................................................................................... 31
Two extra dimensions ..................................................................................................................... 31
Long vs. Short-Term Orientation ...................................................................................................... 32
Indulgence (versus restrained) ........................................................................................................ 33
Limitations of Hofstede’s Values ..................................................................................................... 34
Schwartz’s Human Values .............................................................................................................. 34
High and Low-Context Cultures (Hall 1976)...................................................................................... 35
Importance of context culture ......................................................................................................... 35
2.3 Marketing implications of culture ........................................................................36
Divergence or convergence? (De mooij and Hofstede 2002) .............................................................. 36
Private label consumption .............................................................................................................. 36
Luxury articles and masculinity ....................................................................................................... 36
Steenkamp et al.1999 ..................................................................................................................... 37
Impact individual and cultural values on innovativeness (Steenkamp et al. 1999) ............................... 37
..................................................................................................................................................... 37
2.4 International segmentation ................................................................................39
Why segment? ............................................................................................................................... 39
Segmentation ................................................................................................................................ 39
Segmentation Level ...................................................................................................................... 41
Segmentation Bases ..................................................................................................................... 41
Segmentation Methods................................................................................................................. 42
2.5 International targeting and positioning ................................................................43
The STP approach .......................................................................................................................... 43
Targeting ........................................................................................................................................ 43
Positioning ..................................................................................................................................... 44
3. International entry ........................................................................................... 46
3.1 Marketing selection ...........................................................................................46
Internationalization as a source of growth ........................................................................................ 46
Firm internationalization can be… ................................................................................................... 46
Country selection........................................................................................................................... 47
3
