International Marketing
Gilles Nakhle
onegilles@gmail.com
06.65.19.91.59
LEARNING OBJECTIVES
• Understand the drivers for going international and the necessary factors for success
• Understand what internal factors will be necessary for a company to consider international
expansion
• Be able to perform an analysis of what markets to target (or avoid) for international
expansion
• Understand the adaptations that are necessary for the international market
• Be able to create a basic plan for the international market for a product - including elements
of the marketing mix
• Understand the key elements of managing a brand in the international market to achieve
continuing success and be able toincorporate those elements into the marketing plan.
Introduction
Culture is one aspect that affects most international marketing in the different countries.
Example : Nike
- 75% of sport shoes are made in one country : China
- one shoe travels through 5 countries before arriving to the customer
There are new comers on the market that may be challenger for our brand. Lots of brand are
coming to fight.
I. Brand / Countries
Nokia : Finland
Gillette : US
Nescafé : Switzerland
Samsung : South Korea
Canon : Japan
Heinz : US
Ikea : Sweden
Philips : Netherlands
Adidas : Germany
Reuters : Great Britain
Bacardi : Bermuda
Hermes : France
Shell : GB / Netherlands
Smirnoff : GB
Nivea : Germany
Johny Walker : GB
Jack Daniels : US
Nitendo : Japan
Heineken : Netherlands
Nissan : Japan
Burberry : UK
LG : South Korea
ING : Netherlands
Motorola : US
Hyundai : South Korea
Axa : France
BP : UK
Amstel : Netherlands
II. Top 100 Global Brands (source : Business Week)
Evaluation conditions
- brand value
- global in nature : it has to sell at least a 1/3 outside the country
- available marketing & financial report : reports have to be public and transparent
+ brand value : figures + liink with awarness, identity…
Top 10 global brands
1. Coca-Cola
Created in 1886 by Dr ????. The first name was « the soda fountain drink ». Initialy was for
stocmach ache and medecine.
2. IBM
In 1924, C-T-R’s changed to International Business Machines Corporation.
In 1965, IBM introduced the 1130 computing systems as a powerful Small computer with a
capability gratter than systems costing several times as much.
1981 : first PC released by IBM.
3. Microsoft
Founded by Bill Gates and Paul Alan in 1975. Their vision was « an improbable vision : a
personal computer on every desk and in every home ». Today, Microsoft continues to expand
the possibilities of personal computing.
4. General Electric
In 1892, two major companies combined to form General Electric.
GE is a holding (diversified business)
- GE Money
- GE Industrial
- GE Healthcare
- GE infrastructure
- GE Commercial Finance
- NBC Universal
5. Nokia
Comes from Finland. Leader in the telecomunication industry. They were initialy in the paper
industry, then moved to the plastic industry, then cable industry, then started acquiring
companies. In the 80’s, they decided to focus on mobile technology industry (but tires can still
be found in FInland).
6. Toyota
The became n°1 in 2006. Nowadays, Toyota is the only one that didn’t merge with other
companies. The biger saling cars in the US is Toyota.
7. Intel
N°1 company in the microprocessor industry
8. Mac Donald’s
Mac Donald’s history began with the founder Ray Kroc in 1954 in Illinois.
30 000 restaurants in 119 countries serving 47 million customers each day.
9. Disney
Disney is not a media company that relies solely upon Mickey Mouse and amusement parks.
The 2nd media network in the world is owned by Disney.
10. Google
In 1996 it was called Back Rub, was a search engine
In 1998, the company was incorporated and called Google
In 2000 it sold ads associated with search keyword
In 2002, it became the most popular search engine
No advertising, relies on word of mouth.
YouTube owned by Google… YouTube is the 2nd search engine in the world.
Reasons of Google’s success
- strong brand identity
- excellent position
- excellent product
Note that
- 8/10 strongest brands in the world are american
- 4/10 are in the computer industry
- the top 100 global brands have changed a lot since the last few years. Lots of brand have
come from other countries than the US
Top 5 gainers
1. Google
2. Apple
3. Amazon.com
4. Zara
5. Nintendo
Part One - Why ?
I. The Internationalization of Business
A. Events and trends affecting global business
Majors trends that have affected international marketing
- the rapid growth of the World Trade Organization and regional free trade areas.
Most active free trade area today is us.
- the trend toward the acceptance of the free market system among developing countries in
Latin America, Asia and eastern Europe.
- the burgeoning impact of the internet, mobile phones, and other global media on the
dissolution of national borders. There are no more borders, at the begining no one measured
the power that internet would have.
- the mandate to properly manage the resources and global environment for the generations
to come.
Examples
- War in Irak : affected US consumer towards french stuff
- sept 2001 : anti american feeling
Nestlé : the food company of the world. They have firms in 80 countries but distribute
worldwide.
Toyota : more than 170 countries
Nowadays, american companies are beeing brought by foreign companies
ex : Ben & Jerry’s = US => UK ; Burger King = US => UK
B. International marketing definition
Domestic marketing : the performance of business activities that direct the flow of a
company’s goods and services to consumers or users for a profit.
International marketing : the performance of business activités that direct flow
C. International marketing task
In international marketing can be controlled
- place
- product
- place
- promotion
In international marketing can’t be controlled
- political a legal force
- economy
- domestic environment
…