INTERNATIONAL & GLOBAL MARKETING

Prof. Carolina Guerini cguerini@liuc.it

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Questions

• What is International Marketing? The definition• What is meant by IM Strategy?• Which is the IM Process?• Is it different from the (internal/national)

Marketing one?• Is it possible to standardize Marketing programs

worldwide?• What happens after IM Planning?

(Execution/Implementation Phase)• What are the difficulties related to intercultural

negotiations?

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Contents

1. The International Marketing (IM) Concept 2. The IM Process2.1 International Marketing Research 2.2 The IM Strategy2.3 IM Programs and Tools (the 4 Ps)3. Intercultural Negotiations and the

Implementation of International Marketing Plans

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International Marketing

11..The International Marketing The International Marketing ConceptConcept

International marketing (IM) or global marketing (GM)

 is a  marketing done on international level

(Wikipedia, https://simple.wikipedia.org/wiki/International_marketing)

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Marketing

InternationalMarketing

Marketing is marketing everywhere! ‘Old’ concepts and tools are important for international markets as well

Nevertheless,when considering

plenty of different countries firms should consider some new issues…

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Vs.

Firms always need :

• proper analysis, • strategy planning, • marketing programs• implementation and • control of their marketingprograms

2. 2. The International Marketing The International Marketing Process Process U

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MARKETING RESEARCH

International environment

MARKETING STRATEGY

MARKETING PROGRAMS

Intercultural Negotiations

MarketingLevels (andConcepts)

Corporate Strategy and Firm Orientation

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MARKETING AUDIT

Level 1- Analysing the International Environment

Marketing products and services around the world trascending national and political boundaries is a fascinating

phenomenon

• But it implies some managerial issues:

You must know your customers ( and not only)You must be able to serve contnuously (keep

contact)You must be preferred (compared with local and

international competitors)

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The International Environment

is often defined as global

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The International Environment

In fact, the environment is quiet different

from country to country

• Focusing on customers they are often dishomogenous

• The same, if we look at competition….• or at regulations,• technology, • etc.

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Global consumers?

……only one of them……

Islamic Marketing: the necessity of adaptation

The product was presented as the hamburger made for the Islamic culture and, moreover, it was presented as a tasty and “beautiful” product due to the colorful appeal and packaging respecting in this way the halal precepts.

Different Environments & Different Environments & Marketing ConceptsMarketing Concepts

International/ Intercultural

MarketingGlobal

Marketing

International or Intercultural Marketing and Global Marketing

evoke different conceptsThe environment has a great role!

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Level 2- International Marketing Strategies and Firms’ International

Orientation

Why do firm internationalize?

REACTIVE MOTIVATIONS:Competitive pressures, overproduction,

declining domestic sales, excess capacity……

+PROACTIVE MOTIVATIONS:Profit, economies of scale, GROWTH

Italian firmsin the past (?)

NowadaysGROWTH?

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International Marketing Strategy

2. ENTRY STRATEGY

1. MARKET SELECTION STRATEGY

POSITIONING STRATEGY

3.SEGMENTATION AND

The International Marketing Strategy

Need for

distinction

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International Marketing Strategy

The International Marketing Strategy

International Marketing Strategyis more complex than Marketing Strategy

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a. Selecting which foreign markets to enter:

Market Selection Strategies

Firms and International Marketing Manager should begin the expansion process by selecting attractive markets

Management ISSUES:• Selecting criteria? • How many markets?• Which market portfolio?

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Some data about the diversification of market expansion

strategies in Italy

• Small firms 57 % 1-5 markets• Small firms 1 % more than25 markets

• 50 million Euro 2 % 1-5 markets• 50 million Euro 20 % more than 25 markets

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Market expansion strategies in Italy

• The internationalization process is mainly reactive• Italian SMEs are often sollecited by international

buyers • For historical reasons many SMEs serve only the

European markets• The geographical pattern changes from year to year• Their international portfolio is often a client- and not

a market- portfolio….….

Market penetration is low Consolidation issues?

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International Marketing (Strategy)

2. ENTRY STRATEGY

1. MARKET SELECTION STRATEGY

POSITIONING STRATEGY

3.SEGMENTATION AND

The International Marketing Strategy

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b. Market-Entry Strategyb. Market-Entry Strategy

THROUGH

Exports

Direct Investment

s

(Contractual & Equity) Entry Modes

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European Ecommerce Turnover to Hit €477 Billion This Year

In Russia, digital sales jumped more than 25% in 2014-

• Yet savvy shoppers often look beyond their own borders to buy items they can't find in their home countries, or to get a better price for familiar purchases. This is especially likely within the EU. Ecommerce Europe found that 15% of individuals in the 28 member countries had bought goods or services from sellers elsewhere in the EU during 2014—25% more than in 2013.

• Looking at retail sales alone, it's clear that Europe's digital transformation is just beginning. eMarketer estimates that digital platforms will account for just 7.3% of overall retail sales value in Western Europe this year—and in Central and Eastern Europe, that slice will be even smaller, at 2.8%.

• - See more at: http://www.emarketer.com/Article/European-Ecommerce-Turnover-Hit-477-Billion-This-Year/1012975?ecid=NL1002#sthash.eF9pXKtv.dpuf

Level of

com

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none

franchising

joint-venture

Contractual agreements

acquisition

subsidiaries

Nationalcountry

Foreign country

Other countries

Production localization

export

Other contrac-tual agreem./commercial subsidiary

piggybacking

franchising

franchising

privatelabeling

licensing

contract manufacturing

assembly

Integrated production

How do firms internationalize ?U

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International Marketing Strategy

b. ENTRY STRATEGY

a. MARKET SELECTION STRATEGY

POSITIONING STRATEGY

c.SEGMENTATION AND

The International Marketing Strategy

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The Segmentation of world Markets

Consumers and customers differ It may be difficult to satisfy themYou have to segment and define precisely your

target

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Positioning

• Positioning is dramatically important• Positioning offers us the guide-lines for our

marketing programs

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Targeting/ Positioning Issues and Italian Firms

Global Consumers (segments)

and Global Products

(are sold everywhere to homogenous clients)

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Level 3 - Defining Marketing Level 3 - Defining Marketing ProgramsPrograms

PRODUCT PRICE PLACE PROMOTION

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Marketing ProgramsMarketing Programs

Can be adapted or standardizedCan be adapted or standardized

INTERNATIONAL OR GLOBAL MARKETING

OR INTERCULTURAL

MARKETING

Balancing effectiveness and efficiency

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Marketing Programs

• The alternative choices: • Local, • glocal, or • global marketing programs

• Importance of the organization (main issue: how to configure and to coordinate marketing activities on a global scale)

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Neither complete standardization nor complete adaptation of products is feasible (Jain 1999).

This point of view is referred to as the “Contingency Perspective”.

The International Debate: the Contingency Perspective

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The adaptation of the marketing tools: an example

Environ-ment

culture

infrastructure

economy

Foreignmarket

specificity

population

politics

transportation

comunication

media

channnels

inflation

demand

barriers

competition

researchchannels sales persons

price product Pro-motion service

Tools and resourcesenvironment

change

High impact Medium impact Low impact

Environ-ment

culture

infrastructure

economy

Foreignmarket

specificity

population

politics

transportation

comunication

media

channnels

inflation

demand

barriers

competition

researchchannels sales force

price product Pro-motion service

Tools and resourcesenvironment

change

High impact Medium impact Low impact

PRODUCT POLICY-Italian standardized or global Products

• Exclusive product• culture-bound products• design-oriented products

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Italian Global Products : Grana (parmisan cheese) Parmiggiano

Reggiano

“ ed eravi una montagna di Parmiggiano grattuggiato sopra la quale stavan genti che niuna altra cosa facevan che fare maccheroni, et

ravioli, et cuocerrgli in brodo di cappone ….” Boccaccio, Decamerone, 1351

• very popular (historical markets: Europe and USA are saturated)

• linked to its territory• bars in Japan (innovation)

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Exclusive Products in Mature Industries -Ferrero’s Products and Main Brands

• Giandujot• Supercrema• Mon Cheri• Kinder Brioss• Nutella• Fiesta• Kinder• Tic Tac

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Design-oriented companies

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Illy – culture-bound Products in Italy

• Founded in 1933• Actual turnover: 200 milions Euro• focalized on the “espresso”- tipical way

italians drink coffee - and on quality

• Illy Bar Innovation Division - service• collection ( remebering : “calogatos”)

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Phase 4. INTERCULTURAL NEGOTIATIONS

• After having completed our (international) marketing plan, international marketing manager have to implement their plans

• Culture is different from market to market

• Intercultural issues emerge

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INTERCULTURAL NEGOTIATIONSdifferent communication patterns

• Anglo-Saxon Oriental_ _ _ _ _ _ _ _ _ _ _ _ _ _

• Latin_ _ _ __ __

Trompenaars, Riding the wawe of culture

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