Lecture 1 - Introduction To International Marketing Final 21-22

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Module Overview

MAR7504-A
International Marketing
Dr Kuttimani Tamilmani

1 04/12/22
About me - Contact Details
Dr. Kuttimani Tamilmani
Office: Room P0.30, Pemberton Building, School of Management,
University of Bradford
Email: k.tamilmani@bradford.ac.uk
Feedback hours: Tuesday 01.00 – 02.00 pm ; Wednesday 01.00-02.00 Pm

o 8+Years of Work experience in Banking and Start-up Industry


o Founding member of award winning start-up Flintobox.com
o Rated as Awesome Employee
o Programme Leader for MSc Digital and Strategic Marketing

2 04/12/22
Module Introduction
• Module aims and Key Learning Outcomes
• Learning Methods
• Core Text
• Topics
• Assessment​
• Communication method

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Module Aims and Learning Outcomes
To develop knowledge and understanding of key international marketing principles and
practices

1. Knowledge & Understanding  ​


1a. Critically appraise forces contributing to as well as working to the detriment
of globalisation​
1b.Critically appraise the choices that companies face when adapting or standardising
their product, price, promotion and distribution policies on the international and global level​
1c Compare and contrast the different market entry modes that companies can choose to enter
foreign markets.​

2. Subject-Specific Skills  ​
2a. Critically analyse and evaluate the macro- and micro-environmental influences that
can affect the way in which international marketing campaigns are devised and implemented​
2b Evaluate the challenges faced by international business managers gathering data on
an international level.​
2c Carry out international research in a systematic manner in order to come up
with evidence based knowledge
4 04/12/22 of the influences described under 1b and their impact on
solving a specific, real-life, business scenario.​
Learning and Teaching methods
o Lectures = 12 hours
o Tutorials = 12 hours
o Directed study = 76 hours​
o Lectures
o To provide a summary of key points
o To provide practical, real life, illustrations
o Tutorials
o Opportunity to apply your learning
o KEY FOR GAINING FEEDBACK ON YOUR PROGRESS AND
UNDERSTANDING
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Core Text

Title: Global Marketing


Author: Svend Hollenson
Edition: 7th., 2017
Publisher: Pearson Education
ISBN: 9781292100111

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Global Marketing

The five-stage decision model in global marketing


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Topics

Week/Session Topics
Week 1 Introduction to international marketing
Week 2 International marketing research (IMR), its process and organization
Week 3 The Political, Economic, and sociocultural environment
Week 4 NO LECTURES – CAREER BOOSTER WEEK
Week 5 Service marketing - Guest Lecture session
Week 6 International market selection process
Week 7 International market entry modes
Week 8 International product decisions
Week 9 International Pricing
Week 10 Channel decisions
Week 11 Promotion Strategies
Week 12 Coursework plan presentation /Drop ins /Revision

8 Sunday 4 Dece
mber 2022
Individual Assignment
o Performance of this module will be assessed by coursework as
follows: Individual assignment (2000 words) – worth 100% of the
module assessment
o The coursework involves developing 2000 word written report to
senior management of a company in your role as their international
marketing analyst. Full details will be provided in week 2 tutorial .

Type Method Description Length Weighting

A presentation of the proposed 10


Formative Presentation 0%
International Marketing plan – optional minutes
2000
Summative Coursework International Marketing plan.  100%
words
Communication Method
o Canvas

o Source of Information
o Module
o Additional teaching material
o Course announcements

o Lecture slides should be available before lecture

10 04/12/22
Rules of the Game
No mobile phones – ringing or texting or
generally playing with 
Please be on time! Listen to what others have
to say.
Come prepared and you’ll enjoy the classes
more.
Ask questions and answer questions
Respect each other and be the best team
player you can be

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MAR7504-A International Marketing
Lecture 1:
Introduction to International marketing

12
Learning objectives
• To describe and understand definition of International Marketing

• Explain various motivations for Internationalization

• Understand various types of international marketing orientation

• Understand various types of Global marketing approach

o Standardization Vs Adaption

o Globalization Vs Localization Vs Glocalization

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Reflecting on what we know

‘Marketing’ Process involves:

Identifying and predicting customer needs, selecting target markets,


then using all the organisation’s resources to satisfy them better than
competitors – profitably.

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What is International Marketing ?
• The performance of business activities that direct the flow of a
company's goods and services to consumers or users in more
than one nation for profit

(Ghauri and Caterora, 2006, p.8)

15 04/12/22
Activity 1 : What are the motivations for an organization to
internationalize?

• Log into below two Fast moving Consumer Goods sector (FMCG)
websites
• https://www.pringles.com/
• https://proper.co.uk/

• While pringles is global, Proper is more UK based Snack company


• Discuss for five minutes what could motivate Proper.co.uk to expand
globally
• Summaries various motivations

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Motives to internationalise (exporting)

Proactive motives Reactive motives

• Profit and growth goals • Competitive pressures


• Managerial urge • Domestic market: small and
• Technology competence / unique saturated
• Overproduction / excess capacity
products
• Foreign market opportunities / • Unsolicited foreign orders
• Extend sales of seasonal products
market information
• Economies of scale • Proximity to international
• Tax benefits customers / psychological distance

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The importance of Going Global

• For U.S. companies, 70% of total world market for goods and service is
outside the country
• For Japanese companies, 90% of world market is outside the country
• For German companies, 94% of their market potential lies outside
Germany

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Global Marketing
• The firm’s commitment to coordinate its marketing activities across
national boundaries in order to find and satisfy global customer
needs better than the competition’ (Hollensen, 2014, p.21)

Does this means


– No boarders? No difference? No distance?

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Activity – Stop and Reflect

Think of last time you visited foreign country and had food in your
favorite restaurant chain in that country.

Were you able to find your favorite menu?

Was the food same or different ?

This depends on organisation’s International marketing orientation

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International marketing orientation
• International marketing approach will depends on MNE’s
international orientation
– Ethnocentric ( Home is superior; Centralized )
– Polycentric ( each country is unique; Decentralized)
– Regiocentric ( each region is unique) (McDonald not offering
beef)
– Geocentric (Global products with local adaptation)
(The EPRG framework, Perlmutter, 1969; Chakravarthy and
Perlmutter, 1985 cited in Hollensen, 2017, p.20-21)

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International marketing orientation

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Global marketing Approach
Standardisation vs Adaptation
o Globalisation o Localisation
o Standardised products o Localised products marketed
marketed globally locally
o Standardized marketing o Localised marketing mix
mix o National segmentation
o Mass marketing
• Market responsiveness
• Global integration

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Global marketing approach

Global Integration
• Worldwide markets
• Removal of trade barriers
• Global village
• Global accounts/Customers
• Worldwide communication
• Standardised worldwide technology
• Global cost drivers

(see Hollensen, 2017: 24-


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28)
Global marketing approach
Market Responsiveness

• Cultural differences ( Global products but no global people)


• Protectionism & National controls
• Opposition to globalisation (“cultural imperialism”)

(see Hollensen, 2017: 24-


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28)
Glocalisation

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Glocalisation
• Mixing standardised and adaptation to minimise costs while maximising
satisfaction
• Cross-boarder segmentation
• Think globally, act locally (see Hollensen,2017:22)

Narratives on a global brand from the consumer perspective: Thompson, C. J.


and Z. Arsel (2004) ‘The Starbucks Brandscape and Consumers’
(Anticorporate) Experience of Glocalization’, Journal of Consumer Research,
31(3),
27 631–642.
04/12/22
Glocalisation

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Quiz time

o Log into Kahoot.it


o Enter the Pin

29 04/12/22
Review Activity
Nivea (www.nivea.com) is a brand owned by Beiersdorf AG (www.beiersdorf.com), which
majority shareholder is Tchibo (owns 30 per cent of the Beiersdorf shares).

2012 key figures:


Net sales: €6,040 billion
IBIT: €700 million
Number of employees: App. 17,000

In 1911, Nivea launched its first line of body care products, capitalizing on an innovation
that created a new type of skin crème. Today the mass-market cosmetics and toiletries brand,
Nivea, is Beiersdorf’s largest brand in terms of sales, product and geographical reach. It
represents over 70 per cent of the company’s Consumer division sales. It is present across all
cosmetics and toiletries, except oral hygiene, through its different lines: Nivea Visage, Nivea
Beauté, Nivea Hair Care, Nivea Creme, Nivea Soft, Nivea Body, Nivea Sun, Nivea For
Men, Nivea Hand, Nivea Deodorant, Nivea Vital, Nivea Bath Care, Nivea Lip Care, Nivea
Baby, and Nivea Intimate Care.
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Review Activity
Nivea developed from a €545 million brand in 1990 to one with sales of €2.7 billion in 2005.
The brand became leader in a number of areas, including skin care and sun care. Beiersdorf
often uses the brand to expand into new products or regions. This allows the company to use
the brand’s global appeal for its new products, while optimizing its investment in brand
support.

Nivea’s geographical strength is in Western Europe. It is still relatively marginal in the North
American cosmetic and toiletries market.

Lately, Beiersdorf launched Nivea Vital, a range of skin care targeted at ageing consumers.
This enables the company to benefit from the growth of anti-ageing products, while
preserving Nivea Visage’s reputation as a caring, purifying brand for younger skins. Nivea
Beauté and more recently Nivea Hair were both launched in an attempt to tap into areas
different from Nivea’s traditional skin care, colour cosmetics and hair care. Whereas Nivea
Beauté is still struggling to establish itself in highly competitive colour cosmetics, Nivea
Hair’s recent performance bodes well for its future.
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Review Activity
Case study

Watch the below videos on Nivea

1) https://www.youtube.com/watch?v=1OH8Dei4-YU
2) https://www.youtube.com/watch?v=d198A3P9pEw
3) https://www.youtube.com/watch?v=tmvNsMJTnd8

32 04/12/22
Review Activity
Questions

1) Which degree of market responsiveness and global


coordination/integration does Nivea represent?
2) Do you think that the Nivea Vital commercial (shown in the second video)
is able to cross borders without any adaptation? If not, which elements
should be adapted?
3) What type of marketing problems should Nivea anticipate when
penetrating the Indian market?

33 04/12/22
Lecture 2:
International marketing research (IMR)

34 04/12/22

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