2. 312MKT International Marketing
Lecture Three

3. Last week: Internationalisation: a necessity, not a luxury
Globalization
Macro-environmental factors
Economic
Political
Legal
Cultural

4. Learning objectives for this lecture:
Recap on economic factors and cultural factors related to the country’s macro-environment
Review the technological factors, and environmental factors related to the country’s macro-environment
Understand how macro-environment affects marketing activities and performance

5. Macro-factors shaping the markets
Economic
Developed economies
Emerging economies
Less developed economies
Currency movements
Socio/Cultural
Language
Religion
Aesthetics
Values
Social organisation
Material culture
Legal
Local domestic laws
International law
Home domestic law
Macro-Environmental
Influences on
International
Marketing
Political
Operational restrictions
Discriminatory restrictions
Physical actions
Technological
Satellite Communications
ISDN
Internet
WWW
The Electronic Superhighway

6. Recap: Economic Factor
Example: Marks & Spencer Expansion in China and Surrounding region
2015
Adopting to economic factors in foreign market
Marks & Spencer opens first Beijing store (2015)

7. Recap: Economic Factor
Example: Marks & Spencer Expansion in China and Surrounding region
2016
A strategic decision to retreat from the specific overseas markets due to:
- Size of business was too small
The company knew too little about its customers in these markets.

8. Recap: cultural framework
Religion
Values &
Attitudes
Language
Culture
Aesthetics
Education
Law & Politics
Social
Organisations
Technology &
Material Culture
Adapted from Terpstra & Sarathy (2000)

9. Adapting to Foreign Cultures
Example: 1975 M&S Entered the European market
Due to a lack of adequate brand name recognition and after much market research, the company followed an adaptation strategy
In France the company decided to adapt the store to French life styles.
- The French stores offered snugger fit clothing
- A wide selection of French wines, and less
British imports

10. Adapting to Foreign Cultures
The company also relied on advertising to spark interest in the stores
From France M&S expanded to
Belgium (1975)
Spain (1990)
Germany (1996)
Followed by smaller economies, such as:
Greece, Hungary, Portugal, and the Czech Republic.

11. M&S’s Journey with Internationalization
Marks and Spencer
M&S’s Journey with Internationalization

12. M&S: Facts Heritage: Has been around since 1884
Positioning/Underpinning Value: Quintessentially British brand.
Focus on selling high value premium products to consumers
Pioneer in R&D

13. M&S: Facts
Innovation: first British retailer to experiment with concept of self-service shopping
Built brand loyalty through a brand that put quality over price
Uniqueness: remain true to its brand positioning

14. M&S: Internationalization Challenge
A brand with a strong national identity:
A quintessentially British brand
How is Britishness, however, ‘defined’, i.e. in terms of the premium value? High quality?
It is also a British company that yet remains multicultural in terms it product offerings, e.g. food products include: English biscuits, Saumon en croûte, Indian Chicken Tikka, Sushi and other.
e.g. Summer Food Advert

15. M&S: Internationalization Challenge
Therefore: it’s no longer enough for the company to rest upon its quintessentially British brand reputation and existing fame and recognition that it has built over the years.
Need to show their customers that it is a company that is capable of evolving

16. M&S: Addressing the challenge
Identifying a global unifying concept that transcends national and cultural barriers.
M&S evolved by adopting a ‘new’ idea that is yet rooted in the company’s traditional focus on ‘quality’ (above all else).
This idea was implemented in the new “spend it well” 2017 campaign highlighting the importance of quality in life
Web-link:

17. Technological factors
Technology is major driving force both in international marketing and in the move towards a more global marketplace.
Technology facilitates:
the ability to gather data about the different markets
Enhancement of communication within the organization and with consumers.
Wireless application protocol (WAP) technology allows online services to be available to mobile users on the move wherever they happen to be in the world. (Dool and Lowe, 2016)

18. Technological factors
The use of global system for mobile communication (GSM) technology enables mobile phone operators to determine the location of a customer globally and send them relevant advertising messages.
(Dool and Lowe, 2016)

19. M&S Smart Technology

20. Environmental Factors
Different attitudes to caring for environment (often can be linked to the stage of economic development).
Different attitudes to environment-concerned consumption (recycling; carbon footprint, etc).
Green Consumerism: The purchasing and non purchasing decision made by consumer based at least partly on environmental or social criteria.
Creating communities of engaged consumers who are concerned about their environment and their society
(Moisander, 2007)

21. Why is Corporate Social Responsibility Important?
The Case of M&S

22. Analytical Frameworks
Macro-Environment
Analytical Frameworks
SLEPT
PESTEL
Risk Evaluation: the four-risk matrix
World Economic Forum
Value Frameworks
Hofstede (1984, 2001)
Inglehart’s Cultural Map of the World – Values Dimensions (1997)

23. Readings
Doole & Lowe: Chapters 1, 2, 3 and 4

24. References
Alon, I. (2000). Marks & Spencer: A case study in international retailing. Ciber Case Collection.
Doole and Lowe (2016). International Marketing Strategy: analysis, development and implementation. Cengage Learning
Hodgson S. (Quintessentially British brands: It’s not just branding, it’s Marks & Spencer branding). Weblink: (last accessed 28/01/2018)
Mosainder J. (2007) Motivational complexity of green consumerism. International Journal of Consumer Research.