1. International Marketing Strategy
Dr Joanna Pokorska

2. Lecture One Part One: Introduction

3. Lecture Objectives To introduce the module and assessment method
To introduce the core text
To discuss expectations

4. Contact details Joanna Pokorska Ash House, room 111
Office hours by appointment:
Wednesday: 12:30-14:30

5. Core text
Global Marketing by Svend Hollensen
(6th Edition, Pearson)

6. Assessment method 1. Group Development Plan – due on 8th March
(1000 words, 15%)
2. Group Presentation – due on 21st March
(10+5 minutes, 15%)
3. Individual Essay – due on 26th April
(2000 words, 20%)                                
4. Exam
(3 hours, 50%)

7. Expectations Lecture slides B’ham email account Canvas announcements
Attend lectures and participate actively
Highlight any problems asap
Essential & recommended readings

8. Part Two: Theories of Internationalisation

9. Reading Hollensen: Chapter 3
Whitelock, J (2002) Theories of Internationalisation and their Impact on Market Entry, International Marketing Review, 19 (4), pp
Cavusgil et al (2005) International Marketing as a field of study: a critical assessment of earlier development and a look forward, Journal of International Marketing, 13(4), pp. 1-27

10. Lecture Objectives To discuss reasons for internationalisation
To discuss how companies decide to internationalise
To explain how international operations are different from domestic
To introduce key theories behind internationalisation process

11. What is international marketing?

12. International Marketing
……consists of the activity, institutions, and processes across national borders that create, communicate, deliver and exchange offerings that have value for stakeholders and society
Czinkota & Ronkainen (2010)

13. What is internationalisation?
“step-by-step process of international business development whereby a firm becomes increasingly committed to and involved in international business operations through specific products in selected markets”
Albaum, G., J. Strandskov & E. Duerr (1998) International Marketing and Export Management, 3rd Ed. Essex: Addison Wesley Longman Ltd.

14. How to internationalise?
Three key theories:
Uppsala Model
Gradual and sequential
Coupled with a deepening of commitment
Transaction Cost Analysis (TCA) Model
Network Model

15. Uppsala Model
Firms attempt internationalisation in countries that are psychologically close – psychic distance
Adopt the concept of market similarity
Lower risk based on the assumption that culture, language, societal norms are similar
Physical distance

16. The Uppsala model - stages
Stage 1: no regular export activities (sporadic export)
Stage 2: Export via independent representatives (export modes)
Stage 3: Establishment of a foreign sales subsidiary
Stage 4: Foreign production manufacturing units

17. Exceptions to the use of incremental steps
Firms with large resources can take larger internationalisation steps
When market conditions are stable and homogeneous, relevant market knowledge can be gained in ways other than experience
When the firm has considerable experience from markets with similar conditions, it may be able to generalise this experience to any market

18. IKEA

19. IKEA cont’d

20. Transaction Cost Analysis Model
Firm will tend to expand until the cost of organising an extra transaction within the firm will become equal to the cost of carrying out the same transaction by means of an exchange on the open market

21. Network model
The relationships of a firm in a domestic network can be used as bridges to other networks in other countries

22. Born Global Operate in two or more countries from inception
Often govern their sales and marketing activities through a specialised network
Generally require minimal adaptation of the marketing mix
Reliance on cutting-edge technology
Managed by entrepreneurial visionaries