International Marketing Ind A - Day 1 PM

3.
3 - marketing
strategy adjustment
International marketing – Jérôme Henry – spring 2024 149

Marketing strategy adjustment
Adaptation vs
standardization marketing
What to offer?
Countries and customers Choice of timing: sequential

segmentation vs. simultaneous
Where to grow and
whom to serve? When?
How to enter?
Entry strategies

How to adjust marketing to international markets ?
 Mains tactics to adjust marketing strategies

Homogeneous
Globalization Export or
Orientation multiliocal
orientation
Buying benaviors
Intercultaural Glocalization
Impacted by cultural
differences
orientation orientation
Undifferentiated
International
Position strategy
marketing – Jérôme Henry – spring 2024 Differentiated 151
 Export marketing
 Type of company : company without a presence abroad and
just wants to develop foreign markets;
 Company strategy: company is focus on answering specific
needs with a niche or value base marketing approach;
 Marketing approach : extend marketing actions used on the
domestic market to peruse these new markets;
 Type of MIX adaptation : minor adaptation on
products/services to fulfill local requirements;
 Organization impact : usually a external distribution is used
and this partner helps to understand market environment and
adaptation needed.
 Intercultural marketing
 Type of company : company with a presence abroad;
 Company strategy: company is answering to an universal need
with a standardized manner;
 Marketing approach : Understanding local markets needs and
changes compare to domestic customers;
 Type of MIX adaptation : Adapt marketing mix to answer to
local needs;
 Organization impact : use local marketing input to optimize
customer intimacy.

 Globalized marketing
 Type of company : multinational company with a strong brand and
strong competitive advantage that can overcome buying behavior
differences;
 Company strategy: company is answering to an universal need
with a standardized manner;
 Marketing approach : the global marketing* relay on 3 key facts :
o Harmonization of global need under technology pressure
o Customer/Consumer is ready to mitigate specifics needs to get the best
satisfaction to price ratio;
o Standardization give a cost reduction edge.
 Type of MIX adaptation : none**, maybe just marcom tools
localization;
 Organization : no need for local marketing.
International marketing – Jérôme Henry – spring 2024 * Théodore levitt - The Globalization of Markets – Harvard business review 154
** Myth of globalization – in recherche et applications en marketing n°3 –Y. Wind & S. Douglas
 Glocalized marketing
 Type of company : multinational company;
 Company strategy: company is still focus on standardization
(universal product or large production) but also answer to local
need to maximize markets coverage with minimal cost impact;
 Marketing approach : adapt the offer depending on the market
demand; mainly linked to cultural differences;
 Type of MIX adaptation : understand what is global and what is
local. I other word see what
o Have to be standardized to achieve economy of scale  core
product, brand/product identity, pricing structure
o Can be localize to improve local market coverage  local technical
requirement, communication campaign, distribution, price level
 Organization : use local marketing/communication entity to
optimize the global/local ratio.
 Let see theory on international marketing approach:

 Adaptation is an effective customer-orientation strategy:
o Adaptation strategy implies changing various aspects of products and services to
a considerable extent in order to meet the needs of consumers in international
markets taking into account their differences (Chung, 2009).
o Adaptation strategy offers advantages of meeting differences of local markets at
various levels, and in this way achieving greater levels of customer satisfaction.
o When pursuing product adaptation strategy differences of specific markets can be
addressed at product development stage, accommodating differences in customer
wants and needs in an effective manner.
 Standardization as a cost saving strategy
o Standardization involves using “the same range of products, the same pricing,
promotional and location strategies” (Gupta and Randhawa, 2008, p.77).
o Rationale behind standardization practices relate to homogenization of consumer
wants and needs due to intensifying forces of globalization (Winer, 2009).
o Standardization can focus on core competitive advantage of the brand and it
“allows for a consistent and strong brand to be developed across all markets”
(Donelly, 2009, p.150).
 Managing differences across country markets : adaptation or

standardization ?
Standardization Major arguments in favor of a more
Effects standardized strategy
Realization of economies of scale
 for “culture-free” products
(reaching of marketing mix) or la
critical mass by extensive  for international standards
standardization earning curve  for exotic or ethnic products
effects  for “mobile” customers
 operational efficiency due to economies of scales
(inferior production, marketing and legal costs)
Objectives
▪ Harmonizing the marketing mix and experience effects
▪ Facilitating cross-country planning  limits the markets’ fragmentation
▪ Exploiting synergies  simplifies decision-making and implementation
▪ Optimizing the costs  better quality control
 when favorable image of imported products,
company, nationality or brand
 Managing differences across country markets : adaptation or

standardization ?
localization Major arguments in favor of a more
Effects localized strategy
 for “culture-bound” products
Differentiation of marketing mix by  for local standards, hygiene or safety regulations
adjustment to national or local  for products that depend on climate conditions
characteristics  to allow for local innovations
 production improvements allows for short production
Objectives
lines at low costs
 Increasing the effectiveness of  flexibility of production across markets and pricing
communication across markets
 Generating a competitive  better local identity of the product, more meaningful
advantage versus (country- communication
specific) competition  when images of imported products, company,
 Market penetration through more nationality or brand are unfavorable
precise targeting  when symbolic attributes such as color, shape, etc.,
 Optimizing the revenues convey inadequate meaning
 Adaptation or standardization ?

Exercise : which adjustment ?
 With some examples is always better !

 Rules for this course application – companies
examples
We
 Will review together some examples of some companies.
You
 Will share your thought about which international
marketing those companies use.
I
 Will share my point of view.
Goal
See how companies, that everyone knows, manage their
international marketing.
 With some examples, it is always better !
Globalized marketing
Adaptation on distribution
Localization of marcom tools

Glocalized marketing
Taste adaptation
Price adaptation

 With some examples , it is always better !
Price adaptation

Localisation of marcom tools

Export marketing
Price adaptation
Local regulation

Price adaptation

Minimal localization of marcom
tools

Export marketing
Localization of marcom
tools
Price adaptation

 With some examples is always better !
Intercultural marketing
Marketing mix (place /
price / promotion)

Select international targets
Adaptation vs
standardization marketing
What to offer?
Countries and customers Choice of timing: sequential

segmentation vs. simultaneous
Where to grow and
whom to serve? When?
How to enter?
Entry strategies

How to segment international markets ?
 Market clustering
 Statistical procedure for dividing countries into groups (clusters)
 Countries belonging to the same group are very similar to one
another but quite distinct from members of other groups
 The most popular technique is to use some type of distance measure
 Squared distances are computed for each pair of countries in the set
1 Macro-segmentation of countries 2 Micro-segmentation across countries

Geographical segmentation on macro variables Segmentation on the micro level, on the level
to identify geographic segments (regions, of customers in the selected countries
countries, etc.) with homogeneous  Classical segmentation in the country level
characteristics that are attractive to the
company  Research for transnational segment
Leads to clusters of countries Leads to clusters of consumers

 Segmentation in practice  the 2 stages approach (1/2)

In practice, managers start by a macro-
segmentation, helping them to create
regions (e.g., Scandinavia; Middle East).
MACRO-SEGMENTATION
MICRO-SEGMENTATION
Then they try to identify segments across

countries and local segments in each
country thanks to micro-segmentation.
International marketing – Jérôme Henry – spring 2024 Source: Steenkampf & Hostede (2002) 172
 Segmentation in practice  the 2 stages approach (1/2)

MACRO-SEGMENTATION
MICRO-SEGMENTATION
Sometimes (e.g., in “universal” product

categories such as sport shoes), segments
are identified on the consumer level and
then aggregated to country clusters of
similar consumer segment structures
International marketing – Jérôme Henry – spring 2024 Source: Steenkampf & Hostede (2002) 173
 Segmentation example : Accenture segmentation

micro to macro
Global USA France Germany Middle East
Consumer Type: Balanced Optimist 7.8 25.3 0 0 23.4
Consumer Type: Impulsive Spender 4.7 0 0 0 0
Consumer Type: Cautious Planner 9.8 0 25 25.7 0
Consumer Type: Undaunted Striver 14.1 12.8 15.5 10.2 14.5
Consumer Type: Inspired Adventurer 14.3 0 0 24.8 0
Consumer Type: Conservative Homebody 18.7 27.6 24.8 0 24.6
Consumer Type: Secure Traditionalist 15.9 14.6 14.8 18.2 15.3
International marketing – Jérôme Henry – spring 2024 Source: Euromonitor 2016 174
 Segmentation example : classic country-level

micro-segmentation (nothing new here…)
One segmentation per country
 Demographics: age of buyers, education, income, area of living
 Socio-economics: housing, travelling, home equipment
 Behavior-based: preferred brand, product penetration, spending per
capita in the category
 Psychographics: attitudes, opinions, beliefs, intentions, liking, lifestyle,
values, cultural habits
Benefits Downsides
Tailored to the local market for multi-local More complex and costly: STP strategy and
marketing 4 Ps for each country
International marketing – Jérôme Henry – spring 2024

Source: Euromonitor 2016
175
 Segmentation example : international-level micro

segmentation  searching for transnational segments
Based on micro-variables describing a consumer

 Demographics  Behavior-based
 Socio-economics  Psychographics
Search of transnational segments:
 On the country level: Key variables measured at the consumer level
 Aggregation across countries: Identification of consumer segments
across countries
Benefits Downsides
 Put in evidence a global segment  Similar segments can be geographically

 More actionable for marketing a product apart
category internationally

176
Differentiation and position
 How to differentiate ?
 4 main tactiques
Percived value
Cost leader
Reference offer on
the market
Non-exploitable area
Price

Differentiation and position
 How to handle positioning ?

• Perceptual maps allow a visual
representation of brand positioning Exclusive
Premium
within a market. They provide a Brand
visual image of consumers’ mental Brand F
landscapes. C
Brand
Luxury
Popular E
Brand
A
Low Brand
High
quality Brand B quality
D
Traditional Good
value for
Brand
money
G
For Young
People
Budget


segmentation  Dollar street project

179


180


main take away !
 International marketing is applying

marketing approach to several
markets/countries.
 Remember the guidance of the 4 marketing
approaches and the Value-Discipline model:
"Differentiate from your competitors in a valuable way for
your customers and a profitable way for your company."
 A deep understanding of the company is
mandatory to identify what is core to build
sustainable competitive advantages and what
can be adapted locally.
 Market knowledge is key to apply the right
marketing tactic. 182
Group work - session 2
 Objectives for this 2nd session :

 Analyze the 3 levels of globalization
 Which dimension they want excel : operational excellence, customer
intimacy, product leadership;
 Which countries are they targeted and why?
 What is their entry strategies;
 Identify what is the international marketing approaches used
by the 3 companies ;
 Give some examples of application of marketing approaches ;

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3.

International marketing – Jérôme Henry – spring 2024 149

Countries and customers Choice of timing: sequential

International marketing – Jérôme Henry – spring 2024 150

 Mains tactics to adjust marketing strategies

International marketing – Jérôme Henry – spring 2024 153

 Let see theory on international marketing approach:

 Managing differences across country markets : adaptation or

 Managing differences across country markets : adaptation or

International marketing – Jérôme Henry – spring 2024 159

 With some examples is always better !

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 161

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 162

 With some examples , it is always better !

International marketing – Jérôme Henry – spring 2024 163

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 164

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 165

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 166

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 167

 With some examples, it is always better !

International marketing – Jérôme Henry – spring 2024 168

 With some examples is always better !

International marketing – Jérôme Henry – spring 2024 169

Countries and customers Choice of timing: sequential

International marketing – Jérôme Henry – spring 2024 170

1 Macro-segmentation of countries 2 Micro-segmentation across countries

Leads to clusters of countries Leads to clusters of consumers

International marketing – Jérôme Henry – spring 2024 171

 Segmentation in practice  the 2 stages approach (1/2)

Then they try to identify segments across

 Segmentation in practice  the 2 stages approach (1/2)

Sometimes (e.g., in “universal” product

 Segmentation example : Accenture segmentation

 Segmentation example : classic country-level

International marketing – Jérôme Henry – spring 2024

 Segmentation example : international-level micro

Based on micro-variables describing a consumer

 Put in evidence a global segment  Similar segments can be geographically

International marketing – Jérôme Henry – spring 2024

International marketing – Jérôme Henry – spring 2024 177

 How to handle positioning ?

International marketing – Jérôme Henry – spring 2024 178

 Segmentation example : international-level micro

International marketing – Jérôme Henry – spring 2024

 Segmentation example : international-level micro

International marketing – Jérôme Henry – spring 2024

 Segmentation example : international-level micro

International marketing – Jérôme Henry – spring 2024 181

 International marketing is applying

 Objectives for this 2nd session :

International marketing – Jérôme Henry – spring 2024 183

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