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The document is a comprehensive study guide on international marketing, outlining key historical milestones, concepts, and strategies. It emphasizes the importance of glocalization, brand strength, and competitive advantage while providing frameworks like the Ansoff Matrix and Porter's strategies for market analysis. Additionally, it includes practical steps for choosing countries for expansion and analyzing market environments using tools like STEEPLE and Porter's 5 Forces.

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0% found this document useful (0 votes)
4 views64 pages

Syn These

The document is a comprehensive study guide on international marketing, outlining key historical milestones, concepts, and strategies. It emphasizes the importance of glocalization, brand strength, and competitive advantage while providing frameworks like the Ansoff Matrix and Porter's strategies for market analysis. Additionally, it includes practical steps for choosing countries for expansion and analyzing market environments using tools like STEEPLE and Porter's 5 Forces.

Uploaded by

luca.connan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

🎯 INTERNATIONAL MARKETING - SUPER SIMPLE STUDY GUIDE

📚 TUTORIAL 1: THE BASICS

🕐 History in 5 Key Points

1700 → Trade wars between European countries (whoever controls


trade wins)

1900 → Inventions that changed everything:

 Transport (trains, cars) = we can deliver far

 Communication (telephone, radio) = we can talk everywhere

 Chemistry (dyes, plastics) = we can manufacture tons of stuff

1950 → GATT created = countries agree to facilitate trade

1980-90 → Globalization

 Fall of Berlin Wall

 Outsourcing to Asia

 "Fast Everything" (everything goes fast)

2000+ → Glocalization

 Global brands BUT locally adapted products

 McDonald's sells burgers everywhere but with different flavors

💡 International Marketing = Regular Marketing + Complications

It's the same because:

 Same concepts (product, price, place, promotion)

 Same objectives (sell, make profit)

It's different because:

 Each country = different environment

 New laws, new culture, new competition

The simple analogy: Imagine you sell cakes in Paris. It's easy, you know
the tastes. Now imagine selling the SAME cakes in Tokyo. Even if you know
how to make cakes, everything else changes (tastes, habits, rules...).

🎮 The 2 Levels of Difficulty


❌ WHAT YOU DON'T CONTROL:

Level 1 - Foreign Environment:

 Politics (can I enter the country?)

 Economy (do people have money?)

 Culture (do they want my product?)

 Competition (who's already there?)

 Geography (can I deliver easily?)

Level 2 - Domestic Environment:

 YOUR country's economy

 YOUR country's rules

✅ WHAT YOU CONTROL:

 Product - what you sell

 Price - how much it costs

 Place - where you sell

 Promotion - how you communicate

🎯 The 3 Main Objectives

1. Be known in many countries

2. Have customers everywhere

3. Make money (logical!)

🔑 The Secret: Glocalization

Think global = same logo, same brand image Act local = adapt the
products

Concrete examples:

 Coca-Cola: Same red bottle everywhere BUT more or less sweet


depending on countries

 McDonald's: Same golden arches BUT McBaguette in France,


Teriyaki in Japan

 Netflix: Same platform BUT content adapted by region


📚 TUTORIAL 2: COMPANY STRATEGY

💪 The 3 Levels of Your Brand's Strength

1. BRAND ASSETS (Your advantages)

 Awareness (do people know you?)

 Reputation (good or bad image?)

 Personality (how are you perceived?)

 Patents (do you have exclusivity?)

2. BRAND STRENGTHS (Your results)

 Market share (how much do you sell compared to others?)

 Loyalty (do customers come back?)

 Iconic products (do you have a star product?)

3. BRAND VALUE (Your money)

 How much you really earn (after paying all costs)

The magic formula: Assets → Results → Money

🎯 Ansoff Matrix (Choose Your Growth Strategy)

Imagine a table with 4 boxes:

EXISTING Products NEW Products

PRODUCT DEVELOPMENT
PENETRATION 😊 😐
EXISTING
Markets Sell MORE of the SAME – Risk: Sell NEW to SAME customers
LOW Ex: Open more stores – Risk: MEDIUM Ex: iPhone →
iPad

MARKET DEVELOPMENT 🚀
DIVERSIFICATION 😱
NEW Sell SAME to NEW customer –
Markets Sell NEW to NEW – Risk: HIGH
Risk: MEDIUM Ex: McDonald's
Ex: Virgin does everything
goes to Japan

For international: You usually use MARKET DEVELOPMENT (bottom


left box) → You take your products that work and sell them in a new
country
⚔️Porter's Strategies (How to Fight in the Market?)

Choose one strategy:

💰 COST LEADERSHIP

 Principle: Be the cheapest

 Examples: IKEA, Walmart, Ryanair

 For whom: Everyone (broad market)

✨ DIFFERENTIATION

 Principle: Be unique/special

 Examples: Apple, Tesla, Hermès

 For whom: Everyone (broad market)

🎯 FOCUS COST

 Principle: Be the cheapest for a specific group

 Examples: Low-cost airlines for backpackers

 For whom: Specific niche

💎 FOCUS DIFFERENTIATION

 Principle: Be exclusive for a specific group

 Examples: Supreme, Rolex

 For whom: Specific niche

🦄 HYBRID (Rare!)

 Principle: Cheap AND quality

 Examples: Zara, Uniqlo

 Difficulty: Very hard to achieve

🏆 Competitive Advantage (Your Superpower)

What is it? What makes you impossible to copy by competitors

Examples:

 IKEA = Ultra-efficient flat-pack furniture system

 Hermès = Artisans trained for 10 years


 Samsung = Technological innovation capacity

 Coca-Cola = 130 years of history and nostalgia

The test: Can my competitors easily copy me?

 YES → This is NOT a competitive advantage

 NO → That's your superpower! 💪

📚 TUTORIAL 3: CHOOSING YOUR COUNTRY

The Process in 4 Steps

STEP 1: Make a list → Which countries could be interesting? (10-15


countries)

STEP 2: Eliminate the worst → Quick analysis: GDP, political stability,


market size → Keep 3-5 countries

STEP 3: Analyze in detail → Study barriers, opportunities, competition


→ Use reliable sources (World Bank, COFACE, etc.)

STEP 4: Choose → Which country offers the best potential with the least
risk?

🚧 The 3 Types of Barriers

1. TRADE & ECONOMICS 💰

 High import taxes?

 Unstable economy?

 Currency that fluctuates a lot?

2. SECURITY

 War or conflict?

 Political instability?

 Dangerous to operate there?

3. LEGAL & REGULATORY 📜

 Lots of paperwork?

 Strict standards?

 Weak intellectual property protection?


✅ Checklist to Evaluate a Country

To analyze:

✓ GDP growth (is the economy growing?) ✓ Political stability (stable


government?) ✓ Purchasing power (can people buy?) ✓ Country risk
(riots, corruption?) ✓ Infrastructure (roads, internet OK?) ✓ Local
competition (who's already there?) ✓ Cultural barriers (big
differences?) ✓ Entry costs (expensive to set up?) ✓ Brand awareness
(are you already known there?) ✓ Potential partners (who can help
you?)

📚 TUTORIAL 4: ANALYZING THE ENVIRONMENT

🔍 STEEPLE (The 7 External Factors)

You must analyze 7 aspects of the country:

S - SOCIAL 👥

 Demographics, education, lifestyle, values

T - TECHNOLOGICAL 💻

 Innovation, tech infrastructure, digital adoption

E - ECONOMIC 💰

 GDP, inflation, exchange rates, unemployment

E - ENVIRONMENTAL 🌱

 Climate, environmental regulations, resources

P - POLITICAL

 Stability, ideology, trade policies

L - LEGAL ⚖️

 Labor laws, consumer protection, product standards

E - ETHICAL 🤝

 CSR, fair trade, labor practices

Memory trick: Sophie Takes Every Egg Purely Legally Everyday


⚡ Porter's 5 Forces (Micro-Environment)

Analyze the industry with 5 questions:

1. BARGAINING POWER OF CUSTOMERS 🛒

 Can they negotiate prices easily?

 Do they have many choices?

 Impact: If they have power → You must lower prices

2. BARGAINING POWER OF SUPPLIERS 📦

 Are there few suppliers?

 Are they unique/hard to replace?

 Impact: If they have power → Your costs increase

3. THREAT OF NEW ENTRANTS 🚪

 Is it easy to enter this market?

 Does it require a lot of investment?

 Impact: If easy → More competition

4. THREAT OF SUBSTITUTE PRODUCTS 🔄

 Are there alternatives to your product?

 Are they cheaper/better?

 Impact: If yes → Customers can leave

5. COMPETITIVE RIVALRY ⚔️

 How many competitors?

 Are they fighting price wars?

 Impact: If strong → Reduced margins

🎯 How to Use the 5 Forces?

Evaluate each force:

 ⚪ LOW = Good for you

 🟡 MEDIUM = Be careful

 🔴 HIGH = Problem

Interpretation:
If all forces are LOW → ✅ Great! Attractive industry, high profits possible

If all forces are HIGH → ❌ Warning! Difficult industry, limited profits

If mixed forces → 🤔 More detailed analysis needed

🔗 STEEPLE + 5 Forces = Complete Analysis

STEEPLE answers: "Is the COUNTRY attractive?" → MACRO analysis (the


country in general)

5 FORCES answers: "Is the INDUSTRY attractive?" → MICRO analysis (your


specific sector)

Together, they answer: "Should I enter this country for this industry?"

🎯 EXAM TIPS

🧠 What You MUST Remember

Frameworks (know by heart):

1. Ansoff Matrix = 4 growth strategies

2. Porter Generic = 5 competitive strategies

3. STEEPLE = 7 macro factors

4. 5 Forces = 5 micro factors

Key Concepts:

 International marketing ≠ domestic marketing (different


environment)

 Glocalization (global + local)

 2 levels of uncertainty (foreign country + origin country)

 Brand assets → strengths → value

 Competitive advantage = difficult to copy

📝 Standard Answer Structure

For an analysis question:

1. DEFINE the concept/framework (2-3 lines)

2. EXPLAIN how it works (4-5 lines)


3. APPLY to the given case (development)

4. CONCLUDE with a recommendation

Example:

"The Ansoff Matrix is a strategy tool that presents 4 growth options based
on products (existing/new) and markets (existing/new). [DEFINITION]

For our company wanting to internationalize, the appropriate strategy is


Market Development (existing products, new markets) because...
[APPLICATION]

This strategy presents moderate risk and requires... [ANALYSIS]

I therefore recommend first entering Germany with our current products


before..." [CONCLUSION]

⚡ Ready-Made Phrases (Use Them!)

To introduce:

 "Market analysis reveals that..."

 "Applying the [X] framework, we observe..."

 "The key success factors are..."

To analyze:

 "On one hand... On the other hand..."

 "However, it should be noted that..."

 "Despite the advantages, risks include..."

To conclude:

 "Based on this analysis..."

 "In conclusion, the recommended strategy is..."

 "Opportunities outweigh threats, therefore..."

🚫 Mistakes to Avoid

❌ Confusing Ansoff and Porter (one = growth, other = competition) ❌


Forgetting to justify your choices ❌ Giving answers without examples ❌
Neglecting source citations ❌ Filling without substance ❌ Forgetting the
difference macro (STEEPLE) vs micro (5 Forces)
✅ What Earns Points

✅ Using correct terminology (in English if required) ✅ Giving concrete


brand examples ✅ Making simple tables/diagrams ✅ Showing you
understand links between concepts ✅ Justifying each statement ✅ Clearly
structuring your answer

🎲 EXPRESS EXERCISES

Quick Quiz - True or False?

1. International marketing uses different concepts from domestic


marketing. F

2. Diversification is the least risky strategy in Ansoff. F (the most


risky!)

3. STEEPLE analyzes controllable factors. F (uncontrollable)

4. If all 5 forces are strong, profit potential is limited. T

5. Brand assets automatically become brand strengths. F (requires


action)

Match the Concepts

Column A:

 IKEA

 Hermès

 McDonald's in Japan

 Supreme

 GDP and inflation

Column B:

 A. Focus differentiation

 B. Market development

 C. Cost leadership

 D. STEEPLE analysis (economic)

 E. Differentiation
Answers: IKEA=C, Hermès=E, McDonald's=B, Supreme=A, GDP=D

Express Case

Situation: A French organic cosmetics brand wants to go to Japan.

Quick questions:

1. Which Ansoff strategy? → Market development

2. Which Porter strategy? → Differentiation (organic = unique)

3. 3 important STEEPLE factors? → Social (beauty habits), Legal


(cosmetic standards), Economic (purchasing power)

4. Main 5 Forces to analyze? → Competition (strong local brands)

💡 QUICK SUMMARY SHEETS

Sheet 1: The 4 Frameworks Compared

What it When to
Framework Key question
analyzes use

Ansoff Strategic Which market/product


Growth options
Matrix planning combination?

Porter's Competitive Strategy


How to compete?
Generic positioning choice

Macro- Country
STEEPLE Is the country attractive?
environment analysis

Sector
5 Forces Industry structure Is the industry attractive?
analysis

Sheet 2: Ansoff Matrix Quick Guide

Produc Marke
Strategy Risk When to use
ts ts

Existin
Penetration Existing ⚪ Low Before going abroad
g

🟡 International
Market Dev Existing New
Medium expansion
Produc Marke
Strategy Risk When to use
ts ts

Product Existin 🟡
New Mature markets
Dev g Medium

Diversificati
New New 🔴 High Rarely for first move
on

Sheet 3: Porter's Strategies Quick Guide

Advantag Scop
Strategy Examples Best when
e e

Cost IKEA,
Low price Broad Price-sensitive market
Leadership Walmart

Differentiatio Unique
Broad Apple, Tesla Customers value quality
n value

Narro Budget Specific niche, price-


Focus Cost Low price
w airlines focused

Unique Narro Supreme,


Focus Diff Specific niche, premium
value w Rolex

Sheet 4: STEEPLE Quick Checklist

For each factor, ask:

✓ Social: Demographics? Lifestyle? Education? Culture? ✓


Technological: Innovation? Infrastructure? Digital adoption? ✓
Economic: GDP growth? Inflation? Purchasing power? ✓ Environmental:
Climate? Regulations? Sustainability? ✓ Political: Stability? Trade
policies? Government intervention? ✓ Legal: Product laws? Labor laws? IP
protection? ✓ Ethical: CSR expectations? Fair trade? Transparency?

Sheet 5: 5 Forces Quick Assessment

If LOW =
Force Questions to ask If HIGH = Bad
Good

Buyer Many buyers? Switching


Lower prices You set prices
Power easy?
If LOW =
Force Questions to ask If HIGH = Bad
Good

Supplier Few suppliers? Unique You control


Higher costs
Power inputs? costs

New Easy to enter? Low More Protected


Entrants barriers? competition position

Alternatives exist? Customers Customer


Substitutes
Cheaper? leave loyalty

Many competitors? Price


Rivalry Low margins Good margins
wars?

Overall assessment:

 Most forces LOW → ✅ Attractive industry

 Most forces HIGH → ❌ Difficult industry

Sheet 6: Country Selection Criteria

Rate each country on these:

Weig
Criteria What to look for
ht

Population, GDP, middle class


Market Size 30%
growth

Growth
25% GDP growth rate, market trends
Potential

Regulations, tariffs,
Ease of Entry 20%
infrastructure

Competition 15% Local/international competitors

Risk 10% Political stability, security

Scoring: Rate /10 for each, multiply by weight, total = choice

Sheet 7: Brand Asset → Strength → Value Chain

BRAND ASSETS (What you have)


Actions: Marketing, innovation, customer service

BRAND STRENGTHS (What you achieve)

Results: Sales, market share, loyalty

BRAND VALUE (What you earn)

Examples:

 High awareness (asset) + Good marketing = High market share


(strength) = High revenue (value)

 Good reputation (asset) + Quality products = Customer loyalty


(strength) = Repeat sales (value)

Sheet 8: International Marketing = Controllable vs Uncontrollable

UNCONTROLLABLE (You must adapt to):

 Foreign: Politics, economy, culture, competition, geography

 Domestic: Your country's situation

CONTROLLABLE (You decide):

 Product: Features, quality, design

 Price: Pricing strategy

 Place: Distribution channels

 Promotion: Communication mix

Key principle: Use controllable to adapt to uncontrollable!

P.S. - Last Minute Checklist:

✅ I can explain the Ansoff Matrix (4 strategies) ✅ I can explain Porter's


Generic Strategies (5 types) ✅ I can list STEEPLE factors (7 factors) ✅ I can
list Porter's 5 Forces (5 forces) ✅ I understand brand assets vs strengths vs
value ✅ I know the difference between macro and micro analysis ✅ I can
apply frameworks to a case study ✅ I can give brand examples for each
concept

🎯 INTERNATIONAL MARKETING - TUTORIALS 5, 6 & 7

SUPER SIMPLE STUDY GUIDE IN ENGLISH

📚 TUTORIAL 5: SEGMENTATION, TARGETING & POSITIONING (STP)

🎯 THE STP MODEL - SIMPLE VERSION

What is STP? A 3-step process to find and reach the right customers:

1. SEGMENT = Divide the market into groups

2. TARGET = Choose which groups to focus on

3. POSITION = Make them see you the way you want

Why use it?

 Focus your efforts on the right people

 Create tailored messages that resonate

 Don't waste money on people who won't buy

📊 STEP 1: SEGMENTATION

MACRO-SEGMENTATION (Big picture groups)

GEOGRAPHIC

 Urban vs rural

 Region

 Climate

SOCIO-DEMOGRAPHIC

 Age

 Gender

 Income

 Education

 Family status
ECONOMIC

 Market size

 Growth potential

 Purchasing power

PRODUCT USE

 Context (where/when used)

 Frequency (daily, weekly)

 Purpose (why they buy)

MICRO-SEGMENTATION (Detailed behavior)

PURCHASING CRITERIA

 Needs-based (functional vs emotional)

 What matters most to them

PURCHASING STRATEGY

 Impulsively (quick decisions)

 Analytically (lots of research)

 Digital channels (online shoppers)

IMPORTANCE/INVOLVEMENT

 Low-importance routine purchases (toothpaste)

 Highly symbolic investments (wedding ring)

PERSONAL CHARACTERISTICS

 Value exclusivity (luxury seekers)

 Demand transparency (ethical shoppers)

 Value heritage (tradition lovers)

🎯 STEP 2: TARGETING

What is Targeting? Choosing which segment(s) to focus on based on


attractiveness and fit.

The 4-Step Targeting Process


1. EVALUATE THE SEGMENTS

 How big is each segment?

 Can we reach them?

 Are they profitable?

2. SELECT TARGET SEGMENT(S)

 Pick the most attractive one(s)

 Consider your resources

3. DEFINE TARGET PROFILE

 Describe them in detail

 Understand their needs

4. DEVELOP MARKETING MIX

 Create tailored product/price/place/promotion

 Design positioning strategy

Key Question: "Which consumers should we focus on — and why?"

💡 STEP 3: POSITIONING

What is Positioning?

Definition: How you want your target audience to perceive your brand
relative to competitors.

Famous Quote:

"Positioning is not what you do to the product; it's what you do to the
mind of the prospect." — Ries & Trout, 1981

The 3 Dimensions of Positioning

1. DIFFERENTIATION

 What makes you unique vs competitors?

 Your special advantage

2. RELEVANCE

 Does this matter to your target audience?

 Do they care about your difference?


3. CREDIBILITY

 Can you legitimately deliver this promise?

 Is it believable?

All 3 must be YES for strong positioning!

The 5-Step Positioning Process

ANALYZE COMPETITION → IDENTIFY CUSTOMER PERCEPTION → DEFINE


YOUR POD

↓ ↓

BUILD POSITIONING STATEMENT ← ALIGN THE MARKETING MIX

1. ANALYZE COMPETITION

 What positions do competitors occupy?

 Where are the gaps?

2. IDENTIFY CUSTOMER PERCEPTION

 What does your target value most?

3. DEFINE YOUR POINT OF DIFFERENCE (POD)

 The unique benefit or emotion you offer

4. BUILD YOUR POSITIONING STATEMENT

 Write it down clearly

5. ALIGN THE MARKETING MIX

 Make sure everything expresses this positioning

Positioning Statement Formula

Structure:

"For [target market], [brand] is the [frame of reference] that [point of


difference] because [reason to believe]."

Example:

"For busy professionals, Uber is the transportation service that provides


instant, reliable rides because of our vast driver network and app
technology."
PERCEPTUAL MAP (PERMAP)

What is it? A visual map showing how consumers perceive different


brands based on key attributes.

For International Marketing, include:

 Your domestic competitors present in the new market

 Local competitors (domestic to the new market)

IMPORTANT RULE: ❌ Axes PRICE & QUALITY are FORBIDDEN ✅ Use other
meaningful attributes (convenience, innovation, tradition, modern, etc.)

⚡ STP QUICK SUMMARY

Step Question Output

SEGMENTATI Who are the potential


Distinct customer groups
ON customers?

Which group(s) should we


TARGETING Chosen segment(s)
serve?

How do we want them to Unique brand image & value


POSITIONING
perceive us? proposition

📚 TUTORIAL 6: MARKET ENTRY STRATEGIES

🌍 HOW TO REACH CUSTOMERS ABROAD

Big Question: "How do you think your favorite brand sells abroad?"

Key Point: Entry strategy determines:

 How products reach the market

 Control, risk, cost, and speed

 Profit margins

 Operational responsibilities

📦 DIRECT EXPORT vs INDIRECT EXPORT

DIRECT EXPORT
What is it?

 Brand sells directly to customer (or intermediary abroad)

 Complete control from supply to delivery

 Cuts out the middleman

Flow:

BRAND → CUSTOMER

Commercial conditions:

 Pricing

 Transport (Incoterms)

 Delivery terms

 Payment terms

INDIRECT EXPORT

What is it? Brand sells to a third party (agent/distributor) who handles


export

Two options:

1. Sell to third party in YOUR country (they export for you)

2. Sell directly to intermediary based in ANOTHER country

Flow:

BRAND → INTERMEDIARY → CUSTOMER

Commercial conditions:

 Distributor margin

 Sales targets

 Exclusivity agreements

⚖️DIRECT vs INDIRECT COMPARISON

ADVANTAGES

DIRECT INDIRECT

✅ Full control ✅ Access to established


DIRECT INDIRECT

channels

✅ Direct customer ✅ Intermediaries' market


relationships knowledge

✅ Higher profit margins ✅ Lower initial investment

✅ Direct market feedback ✅ Shared risks

✅ Flexibility ✅ Quicker market entry

DISADVANTAGES

DIRECT INDIRECT

❌ Less control over


❌ Higher costs
pricing/branding

❌ Need market ❌ Limited direct customer


expertise engagement

❌ Higher risks ❌ Dependence on intermediaries

❌ Longer time to
❌ Less flexibility
establish

🤝 INDIRECT EXPORT: TYPES OF CONTRACTS

1. FRANCHISE

What is it? A distribution agreement where:

 Franchisee gets exclusive right to use brand name/logo in a defined


territory

 Franchisee markets products/services following brand guidelines

Two parties:

 Franchisor (the brand)

 Franchisee (the operator)

FRANCHISOR OBLIGATIONS

✅ Grant exclusive geographical rights ✅ Provide commercial know-how ✅


Train franchisee before launch ✅ Supply continuous technical and
commercial assistance
Example brands: McDonald's, Subway, 7-Eleven

FRANCHISEE OBLIGATIONS

💰 Pay royalties (% of turnover) 💰 Finance point of sale (POS) creation 💰


Pay distribution costs (personnel, products, marketing) 📦 Buy
exclusively from franchisor or approved suppliers 🚫 No competitor
brands (during and slightly after contract)

Key Point: Franchisee is a sole trader who runs business at own risk

2. LICENSING

What is it? A temporary and exclusive contract to:

 Produce AND market products on a defined territory

 Use brand's name, logo, intellectual property

Two parties:

 Brand (licensor)

 Licensee (manufacturer/distributor)

BRAND (LICENSOR) ROLE

✅ Does NOT control licensee's distribution operations ✅ BUT provides


support and guidance for:

 Product designs

 Points of sale strategy

 Which retailers to target

Example brands: L'Oréal (licensing fragrances to other brands), Disney


(licensing characters)

LICENSEE OBLIGATIONS

💰 Pay upfront fee 💰 Pay ongoing royalties to brand 📦 Take financial


risks by:

 Developing and manufacturing product

 Stocking the product


 Building commercial team for the brand

FRANCHISE vs LICENSE - Quick Comparison

FRANCHISE LICENSE

Distribution agreement Production + distribution agreement

Services AND/OR products Usually products

Franchisor controls operations


Brand gives more freedom
closely

Franchisee sells directly to end


Licensee sells to retailers
customer

Example: L'Oréal perfumes for Ralph


Example: McDonald's restaurant
Lauren

Distribution Flow:

Franchise:

Brand → Franchisee → End Customer

License:

Brand → Licensee → Retailer 1, 2, 3 → End Customers

3. STRATEGIC ALLIANCES & JOINT VENTURES

What is it? Partnering with local firms for market entry

Key commercial considerations:

 Investment share

 Profit/loss allocation

 Operational responsibilities

 Exit clauses

Pros: ✅ Local expertise ✅ Shared risk ✅ Faster entry

Cons: ❌ Potential conflicts ❌ Shared profits ❌ Shared control

Example: Renault-Nissan alliance

🏪 DISTRIBUTION CHANNELS
DIRECT CHANNELS

 Own stores

 Company website

 Direct sales teams

Example: Apple Stores, Tesla showrooms

INDIRECT CHANNELS

 Agents

 Distributors

 Wholesalers

 Retailers

Example: Selling through Amazon, Walmart, Carrefour

💰 3 TYPES OF RETAILER AGREEMENTS

1. FIRM PURCHASE

How it works:

 Retailer BUYS goods from brand at wholesale price

 Products are PAID for and OWNED by retailer

 Store holds the stock

Retailer responsibilities:

 Choose point of sale (placement in store)

 May ask for furniture/signage

 May request salesperson (partial coverage)

Example: Supermarkets buying from suppliers

2. CONDITIONAL PURCHASE (THE CORNER)

How it works:

 Brand holds the stock (products belong to brand)

 Retailer takes % of turnover


Retailer asks for:

 Point of sale negotiation (location, surface, expected KPIs)

 Expected Turnover/Sq. Meter

 Brand's own furniture and visual identity

 Brand's sales team presence

 Staff cover blanket / Expected turnover

Example: Cosmetic counters in department stores (Sephora corner in


Galleries Lafayette)

3. CONCESSIONS (SHOP-IN-SHOP)

How it works:

 Brand is a TENANT (pays monthly rent)

 Annual renewable lease

 Brand has FULL management of space

Brand responsibilities:

 Furniture and visual identity

 Sales team (brand chooses and pays salespeople)

 Full-time cover

 Products and stock

 ~25-30% of turnover goes to retailer

Example: Prada shop inside Harrods, luxury brand boutiques in airports

QUICK COMPARISON TABLE

Who owns Who pays Revenue


Type
stock? staff? model

Firm Wholesale
Retailer Retailer
Purchase price

Conditional Brand Brand % of turnover

Rent + %
Concession Brand Brand
turnover
WHERE EACH IS USED

FIRM PURCHASE:

 Department stores

 Multi-brand stores

 Concept stores

 Selective distribution

CONDITIONAL:

 Department stores

 Selective distribution

CONCESSIONS:

 Department stores

 Duty Free

 Malls

 Selective distribution

 Pop-up stores

🎯 KEY TAKEAWAYS - TUTORIAL 6

Entry strategy determines: → HOW to sell abroad → Impacts control,


risk, costs, and margins

Distribution channels define: → WHO handles sales, delivery, and


operations

Commercial conditions are critical: → Protect company interests and


profitability → Always negotiate: pricing, margins, contracts

📚 TUTORIAL 7: CULTURE

🌍 DOMESTIC vs INTERNATIONAL: THE REALITY CHECK

Domestically:

 ~50% of new products FAIL

 Brand notoriety is established


 You know the market

Internationally:

 You're starting from ZERO

 New brand in their eyes

 New customers with DIFFERENT perceptions

 No matter how similar they seem

Key Mindset: = ADOPT AN ENTREPRENEUR MINDSET

🎭 WHAT IS CULTURE?

Definition: The acquired knowledge that people unconsciously use to


interpret experiences and generate social behavior.

Key Characteristics of Culture

Culture is LEARNED:

 Enables people to interact and communicate

 Defines beliefs, values, meaning of life

 People struggle when values differ

Culture is MOBILE:

 It evolves within each society

Culture is RELATIVE:

 Different nationalities (even regions) perceive world differently

 Different notions of acceptable/unacceptable behavior

Culture is about GROUPS:

 Collective shared values

 Acquired from social environment (not born with it)

 Children learn as they're raised

🧊 THE ICEBERG MODEL

VISIBLE = 20%:

 Food
 Clothing

 Language

 Gestures

 Symbols

INVISIBLE = 80%:

 Beliefs

 Values

 Attitudes

 Communication style

 Relationships

Important: The invisible part is what really matters in marketing!

🎯 CULTURE IN MARKETING

Cultural factors play a VITAL role in consumer behavior

3 levels to consider:

1. CULTURE

 Society's roles, behavior, values, traditions

2. SUB-CULTURE

 Groups sharing same values: religion, race, geographic location

3. SOCIAL CLASS

 Behavior of social class is quite similar

Marketer must consider ALL factors!

🌈 TROMPENAARS & HAMPDEN-TURNER: 7 DIMENSIONS

The 7-D Model of Culture

HUMAN RELATIONSHIPS (5 dimensions)

1. UNIVERSALISM vs PARTICULARISM

 Rules vs Relationships

 Do rules apply to everyone equally or do relationships matter?


2. INDIVIDUALISM vs COMMUNITARIANISM

 Individual vs The Group

 Focus on personal achievement or group harmony?

3. SPECIFIC vs DIFFUSE

 How far people get involved

 Separate work/personal life or overlap?

4. NEUTRAL vs EMOTIONAL

 How people express emotions

 Hide feelings or show them openly?

5. ACHIEVEMENT vs ASCRIPTION

 How people view status

 Earned by what you do or given by who you are?

TIME & ENVIRONMENT (2 dimensions)

6. SEQUENTIAL TIME vs SYNCHRONOUS TIME

 How people manage time

 One thing at a time or multitasking?

7. INTERNAL DIRECTION vs OUTER DIRECTION

 How people relate to environment

 Control nature or work with nature?

📊 CULTURAL ANALYSIS FRAMEWORK

GEOGRAPHIC PERSPECTIVE

LOCATION & TOPOGRAPHY

 Assess markets and business operations

 Example: Site selection for new store

CLIMATE

 Assess extreme weather events

 Example: Risk assessment


SOCIAL PERSPECTIVE

FAMILY

 Nuclear, Extended

 Marriage, parental roles

 Female & male roles

EDUCATION

 Primary, secondary, higher

 Literacy rate = quality of development

POLITICAL & LEGAL SYSTEM

 Political structure

 Role of local government

 Judiciary system

 Social security

 Health care

SOCIAL ORGANIZATION

 Group behavior

 Social classes

 Race, ethnicity, subcultures

RELIGION

 Major religions

 Relationship with people

 Powerful cults/influences

AESTHETICS

 Visual arts, music

 Theater, performing arts

 Folklore and symbols

LIFESTYLE PERSPECTIVE

DIET & NUTRITION


 Animal/plant consumption rates

 Typical meals and flavors

 Malnutrition rates

ACCOMMODATION

 Types & costs

 Owning or renting

 One family or multiple family households

CLOTHING

 National dress

 Colors

 Types, materials

LEISURE ACTIVITIES

 Sports

 Recreation activities

 % of income spent

LANGUAGE

Languages are VITAL in achieving cross-cultural business success

Two types:

 SPOKEN (oral communication)

 WRITTEN (documents, contracts, marketing materials)

Important: Always use local language or professional translators!

🎯 KEY TAKEAWAYS - TUTORIAL 7

Culture shapes: → Perception and purchasing behavior

Understanding culture helps: → Decode differences → Avoid mistakes


→ Build trust

Cultural mistakes can: → Destroy brand reputation → Lose customers →


Waste investments
Success formula: → Curiosity + Respect + Adaptability = Success in
global markets

Global marketing requires: → Cultural adaptation strategies → Not just


translation, but transformation!

💡 INTEGRATED STP + ENTRY + CULTURE

The Complete Picture

SEGMENTATION → TARGETING → POSITIONING

↓ ↓ ↓

WHO to serve → WHICH group → HOW to be perceived

↓ ↓ ↓

ENTRY STRATEGY (How to reach them)

↓ ↓ ↓

Direct Export / Indirect Export / Franchise / License

↓ ↓ ↓

DISTRIBUTION CHANNELS (Where to sell)

↓ ↓ ↓

Own stores / Retailers / Corners / Concessions

↓ ↓ ↓

CULTURAL ADAPTATION (How to connect)

↓ ↓ ↓

Respect culture / Adapt message / Build trust

📝 EXAM TIPS FOR TUTORIALS 5-7

Common Question Types

1. Define and Explain STP

 Use the 3-step framework

 Give examples for each step

2. Compare Direct vs Indirect Export

 Use the advantages/disadvantages table


 Give real brand examples

3. Explain Franchise vs License

 Focus on key differences

 Distribution control

 Who takes financial risk

4. Cultural Analysis

 Use Trompenaars dimensions

 Apply to specific country/brand

 Show how culture impacts marketing decisions

🎲 QUICK QUIZ - TUTORIALS 5-7

1. What are the 3 steps of STP? → Segmentation, Targeting,


Positioning

2. Direct export means? → Brand controls entire transaction to


customer

3. Who pays royalties in a franchise? → Franchisee pays franchisor

4. What's the difference between franchise and license? →


Franchise = distribution only; License = production + distribution

5. What % of culture is invisible? → 80%

6. Name 2 Trompenaars dimensions → Any two from: Universalism vs


Particularism, Individualism vs Communitarianism, etc.

7. In a concession, who owns the stock? → The brand owns the stock

8. PERMAP axes can be Price & Quality? → FALSE - these axes are
FORBIDDEN

🌟 FINAL CHECKLIST - AM I READY?

✅ I can explain STP model with examples ✅ I can compare direct vs indirect
export ✅ I know difference between franchise and license ✅ I can list 3
types of retailer agreements ✅ I understand the culture iceberg ✅ I know
Trompenaars' 7 dimensions ✅ I can apply cultural analysis to a market ✅ I
can write a positioning statement ✅ I can create a perceptual map ✅ I can
link STP → Entry → Culture
If you checked all boxes → YOU'RE READY! 🎉

📖 KEY VOCABULARY (ENGLISH)

STP Terms:

 Segmentation = Dividing market into groups

 Targeting = Choosing which groups to serve

 Positioning = How you want to be perceived

 Perceptual Map = Visual map of brand perceptions

Entry Strategy Terms:

 Direct Export = Brand controls entire process

 Indirect Export = Third party handles export

 Franchise = Distribution agreement

 License = Production + distribution agreement

 Franchisor = Brand giving franchise

 Franchisee = Person operating franchise

 Licensor = Brand giving license

 Licensee = Person producing under license

 Royalties = % fees paid to brand

 Point of Sale (POS) = Where product is sold

 Concession = Shop-in-shop arrangement

Culture Terms:

 Culture = Shared values and behaviors

 Sub-culture = Group within culture

 Universalism = Rules apply equally

 Particularism = Relationships matter

 Individualism = Focus on individual

 Communitarianism = Focus on group

🎯 INTERNATIONAL MARKETING - TUTORIALS 8 & 9


SUPER SIMPLE STUDY GUIDE IN ENGLISH

📚 TUTORIAL 8: PRODUCT & PRICE (OPERATIONAL MARKETING)

🔄 REMINDER: THE MARKETING TASK

International Marketing = MORE COMPLEX

You must consider 2 LEVELS of uncontrollable uncertainty:

LEVEL 1 - FOREIGN ENVIRONMENT (Uncontrollable):

 Political/Legal forces

 Economic forces

 Cultural forces

 Competitive forces

 Geography & infrastructures

 Level of technology

LEVEL 2 - DOMESTIC ENVIRONMENT (Uncontrollable):

 Macro-environment (your country's climate & forces)

 Micro-environment (your market)

WHAT YOU CONTROL:

 Research

 Product

 Price

 Place

 Promotion

Key Point: International marketing is more complicated than domestic


because you face uncertainty in BOTH environments!

🎯 FRAMING THE STRATEGY

Before deciding on Product & Price, ask yourself 3 key questions:

1. PRICE

"How price sensitive are the targeted customers?"


 Can they afford premium pricing?

 Do they expect value for money?

 Are they bargain hunters?

2. DIFFERENTIATION

"Do the customers have underserved needs?"

 What problems aren't being solved?

 What gaps exist in the market?

 What can we offer that's unique?

3. NICHE

"Is the brand's unique product highly valued?"

 Is there a specific group that would love this?

 Can we dominate a small segment?

 Is exclusivity an advantage?

🏆 COMPETITIVE ENVIRONMENT

Choose Your Scope:

BROAD SCOPE = Entire category

 Compete with other brands doing the same thing

 Example: Coca-Cola vs Pepsi (soft drinks)

NARROW SCOPE = One or two niches

 Dominate either on price OR differentiation

 Example: Supreme (limited edition streetwear niche)

📋 PLANNING CHECKLIST

Before creating your operational marketing strategy, make sure


you've done:

✅ Previously identified:

 Corporate strategy

 Internal strengths and weaknesses


 External opportunities and threats

✅ Analyzed:

 Buyers' needs and wants

 Buyers' beliefs and perceptions

 Buyers' options (alternatives)

✅ Identified:

 Brand identity

 Marketing strategy

 Target market

Now you're ready to decide on PRODUCT and PRICE!

📦 PART 1: PRODUCT STRATEGY

🌍 STANDARDIZATION vs ADAPTATION

STANDARDIZATION (Global Product)

What is it? Marketing a product WITHOUT making ANY changes to it


across countries.

Characteristics:

 Same materials

 Same packaging

 Marketed under the same name

 Uniformity and consistency

 If changes happen, they're only SUPERFICIAL

Example: Coca-Cola bottle (same red logo, same bottle shape


everywhere)

When to use:

 Strong global brand recognition

 Universal product appeal

 Economies of scale

 Consistent brand image is critical


ADAPTATION (Local Product)

What is it? Modifying products to fit local market needs, preferences, and
regulations.

What can be adapted:

 Features

 Design

 Packaging

 Brand name

 Ingredients

 Size

 Colors

 Instructions

Example: McDonald's menu varies by country (McBaguette in France,


Teriyaki Burger in Japan)

When to use:

 Strong cultural differences

 Different regulations (safety, food additives)

 Different usage patterns

 Different consumer preferences

🎂 PRODUCT LEVELS (3 Layers)

Think of a product like an onion with 3 layers:

CORE BENEFIT (Inner layer - Universal)

 The fundamental need the product satisfies

 Usually the SAME across markets

 Example: A phone satisfies the need for communication

ACTUAL PRODUCT (Middle layer - Can vary)

 Features

 Design

 Brand name
 Quality

 Packaging

AUGMENTED PRODUCT (Outer layer - Often varies)

 Warranty

 Service

 Delivery expectations

 Usage instructions

 Customer support

 Installation

Important: Core benefit is usually universal, but actual and augmented


products often need adaptation!

❓ PRODUCT: KEY QUESTIONS TO ASK

Customer Needs:

 What does the customer WANT from the product?

 What HIDDEN NEED does it address?

 What features does it NEED to have?

Product Features:

 Are there OVERLOOKED features that can add value?

 Are there ADDED features that add NO value?

Usage:

 HOW will the product be used?

 WHERE will the product be used?

Design & Branding:

 What should the product LOOK LIKE?

 Size? Colors? Materials?

 What should it be NAMED?

 What will the BRANDING strategy be?

Value Proposition:
 What is the USP/UVP?

 How will it be communicated?

Economics:

 What's the cost of production?

 Can features/benefits justify a logical price?

 Can we make a profit?

🆚 USP vs UVP

USP = Unique Selling Proposition

 More SPECIFIC

 Focused on a SINGLE unique benefit or feature

 Example: "The only smartphone with 10-day battery life"

UVP = Unique Value Proposition

 BROADER

 Includes a wider range of benefits and value

 Example: "The smartphone that keeps you connected, productive,


and entertained without compromise"

🔧 MANDATORY OR DISCRETIONARY ADAPTATIONS?

MANDATORY (You MUST adapt)

 Electrical standards (plugs, voltage)

 Safety regulations

 Food additives regulations

 Language on packaging

 Legal requirements

DISCRETIONARY (You CHOOSE to adapt)

 Colors (cultural preferences)

 Flavors (taste preferences)

 Sizes (portion preferences)


 Features (usage habits)

 Brand name (pronunciation)

Examples:

 Plugs = Mandatory (different electrical standards)

 Food additives = Mandatory (E numbers banned in some countries)

 Shampoo formulas = Discretionary (hair types differ, but not legally


required)

BRAND ARCHITECTURE STRATEGIES

HORIZONTAL CRUNCH

What is it? Reducing product range and "nicheing" to target specific


segments more precisely.

Example: The Laughing Cow

 Started with many varieties

 Reduced to core products

 Created specialized versions (plant-based, original, spreads)

When to use:

 Too many products dilute brand

 Want to focus on bestsellers

 Need to differentiate more clearly

VERTICAL CRUNCH

What is it? Expanding into NEW categories or services while staying


within brand identity.

Example: A fashion brand might expand into:

 Automotive (branded cars)

 Healthcare (wellness products)

 Financial services (branded credit cards)

 Education (training programs)

 Manufacturing (production equipment)


When to use:

 Grow within existing market share

 Leverage brand strength

 Diversify revenue streams

🎉 CREATING PRODUCTS RELEVANT TO THE MARKET

CELEBRATION PRODUCTS

What is it? Special products created for local celebrations, holidays, or


cultural events.

Examples:

Dunkin' Donuts:

 Different flavors for different markets

 Korea: Kimchi donut (spicy, savory)

 India: Cardamom coffee blend

 Thailand: Mango sticky rice donut

Starbucks:

 China: Red Bean Frappuccino for Chinese New Year

 Japan: Sakura (cherry blossom) drinks in spring

 USA: Pumpkin Spice Latte in fall

Netflix:

 India: Produces Bollywood-style content with local stars

 Creates characters and stories that reflect local culture

Why it works:

 Shows respect for local culture

 Creates buzz and excitement

 Drives trial and loyalty

 Generates social media engagement

💰 PART 2: PRICING STRATEGY


💵 PRICE POLICY OPTIONS

1. SKIMMING PRICING

What is it? Start with HIGH price, then lower it over time.

When to use:

 New, innovative product

 Early adopters willing to pay premium

 Want to recoup R&D costs quickly

 Limited competition initially

Example: New iPhone launches at high price, then drops after 6 months

2. PENETRATION PRICING

What is it? Start with LOW price to gain market share quickly, then raise
it.

When to use:

 Entering a competitive market

 Want to attract price-sensitive customers

 Have economies of scale

 Can afford initial low margins

Example: Netflix entering new markets with very low subscription prices

3. ALIGNMENT PRICING

What is it? Match competitor prices.

When to use:

 Similar product to competitors

 Don't want price wars

 Market is price-transparent

 Differentiation is not on price

Example: Gas stations in same area often have similar prices


4. COST-BASED PRICING

What is it? Calculate costs, add desired margin.

Formula: Production cost + Export cost + Tariffs + Margin = Final Price

When to use:

 Need to ensure profitability

 Have clear cost structure

 Less concerned about competitive pricing

 Luxury or unique products

Example: Sephora products (cost of ingredients + packaging +


distribution + margin)

🌍 PRICING CHALLENGES IN GLOBAL MARKETS

Complex drivers affect international pricing:

1. CURRENCY FLUCTUATIONS

 USD, EUR, Yen rates change daily

 Can make product suddenly expensive or cheap

2. INFLATION VARIATION

 Different countries have different inflation rates

 Affects purchasing power

3. TARIFFS & TAXES

 Import duties

 VAT/GST rates

 Luxury taxes

4. LOGISTICS & DISTRIBUTION COSTS

 Shipping

 Warehousing

 Last-mile delivery

5. PURCHASING POWER DISPARITIES

 What's "affordable" varies greatly


 $100 = different value in USA vs India

6. LOCAL COMPETITORS

 May have lower cost structures

 Force you to compete on price

🎯 GLOBAL PRICING STRATEGIES

1. STANDARDIZED GLOBAL PRICING

What is it? Same base price worldwide (adjusted for currency).

Common in:

 Luxury brands (Hermès, Rolex)

 Tech products (Apple, Sony)

Pros: ✅ Consistent brand positioning ✅ Simpler to manage ✅ Prevents grey


market arbitrage

Cons: ❌ Affordability gaps ❌ May be too expensive in some markets ❌


Ignores local purchasing power

Example: Apple iPhone costs roughly the same everywhere (when


adjusted for currency)

2. DIFFERENTIATED/MARKET-BASED PRICING

What is it? Price set based on local conditions in each market.

Based on:

 Local willingness-to-pay

 Competitive intensity

 Cost of operations

 Regulations

 Purchasing power

Example: ZARA Pricing (compared to UK average):

 UK: 31.43% (baseline)

 USA: 38.85% (+7% more expensive)

 Mexico: 46.06%
 Japan: 97.49% (3x more expensive!)

 Russia: 80.44%

Why the differences?

 Import costs

 Real estate costs

 Labor costs

 Taxes

 Local competition

 Brand positioning in that market

3. COST-PLUS vs VALUE-BASED PRICING

COST-PLUS PRICING:

 Production + Export + Tariffs + Margin = Price

 Ensures you cover costs and make profit

 Less flexible

 Example: Sephora calculates all costs then adds margin

VALUE-BASED PRICING:

 Price based on perceived value to customer

 Common in premium and luxury

 More flexible

 Allows higher margins if value is high

 Example: Starbucks charges premium because of "experience"


value, not just coffee cost

Comparison:

Flexibili
Approach Based on Example
ty

Cost-Plus Internal costs Low Generic products

Value- Customer Luxury, premium


High
Based perception brands
📚 TUTORIAL 9: PLACE & PROMOTION

🏪 PART 1: PLACE (DISTRIBUTION)

🎯 FUNCTION OF PLACE

Place = The LAST FRONTIER → The LINK with the "End-User"

4 Key Functions:

1. REACH

 Most visible activity undertaken by company

 Make the offer reach the customers

 Ensure availability

2. ACCESSIBILITY

 Wherever, whenever

 Customers can access product when they want

 Multiple touchpoints

3. EXPERIENCE

 Fierce competition = variety of choices

 Customer experience differentiates brands

 More than just selling

4. CONNECTION

 The link between brand and customer

 Where transactions happen

 Where relationships are built

OFFLINE vs ONLINE: SERVICE COMPARISON

OFFLINE SERVICES

Personal Touch:

 Personal shopping assistance

 In-store demonstrations

 Free gift packaging

 Local staff assistance


 Face-to-face interaction

Experience:

 Try before you buy

 Immediate gratification

 Social shopping experience

 Sensory engagement (touch, smell, see)

ONLINE SERVICES

Convenience:

 Free delivery

 Click & collect

 24/7 availability

 Shop from anywhere

Technology:

 AR try-ons (virtual fitting rooms)

 Virtual assistants (chatbots)

 Personalized recommendations

 Easy price comparison

🏬 OFFLINE STORE TYPES

1. OWNED STORES / FLAGSHIP

 Brand controls everything

 Showcase brand experience

 Premium locations

 Example: Apple Store, Nike flagship

2. SUPERMARKETS / HYPERMARKETS

 Mass distribution

 High volume, low margin

 Example: Walmart, Carrefour, Tesco


3. SELECTIVE DISTRIBUTION

 Limited number of selected retailers

 Maintain brand image

 Example: Perfume brands in select pharmacies

4. DEPARTMENT STORES

 Multiple brands under one roof

 Various commercial agreements possible

 Example: Harrods, Galleries Lafayette

5. CONCEPT STORES

 Curated selection

 Lifestyle-focused

 Target specific customer type

 Example: Colette (Paris), Dover Street Market

🎨 OFFLINE: MERCHANDISING & DISPLAYS

STORE LAYOUT

Grid Layout:

 Organized in straight aisles

 Easy navigation

 Common in supermarkets

Boutique Layout:

 More intimate spaces

 Encourages browsing

 Common in fashion stores

Free-Flow Layout:

 No set pattern

 Encourages exploration

 Common in lifestyle stores


PRODUCT PLACEMENT

Eye-Level Placement:

 Most visible = best sellers

 "Eye level is buy level"

Cross-Merchandising:

 Related products placed together

 Example: Pasta sauce next to pasta

Seasonal Placement:

 Front of store = seasonal items

 Creates urgency

DISPLAYS & ANIMATIONS

POP (Point of Purchase):

 Displays at checkout or endcaps

 Impulse purchases

End Caps:

 End of aisles = high visibility

 Promotional items

Seasonal Displays:

 Christmas, Valentine's, Back to School

 Create excitement

Workshops:

 In-store events

 Beauty tutorials, cooking demos

 Build engagement

Pop-Ups:

 Temporary installations

 Create buzz and urgency


SERVICE & EXPERIENCE

Product Trials:

 Test products in store

 Reduces purchase risk

Interactive Demos:

 Staff demonstrates products

 Educational and engaging

Guided Tours:

 Store walk-throughs

 VIP experiences

Store Apps:

 Digital integration in physical store

 Navigation, product info, offers

Loyalty Benefits:

 Exclusive in-store perks for members

 Early access to sales

CULTURAL ADAPTATION

Scandinavian Countries:

 Minimalist displays

 Clean, organized

 Lots of white space

India/Brazil:

 Vibrant, crowded displays

 More is more

 Colorful, energetic

Japan:

 Attention to detail

 Seasonal themes
 Gift-ready presentation

Key Point: Merchandising is a COMMUNICATION TOOL and part of


customer experience!

💻 ONLINE: CHANNELS & MERCHANDISING

CHANNELS

Brand Website:

 Full control over experience

 Direct relationship with customer

 Example: [Link], [Link]

Marketplaces:

 Leverage existing traffic

 Less control over branding

 Example: Amazon, Alibaba, Etsy

Social Commerce:

 Sell directly on social platforms

 Seamless shopping experience

 Example: Instagram Shopping, TikTok Shop

MERCHANDISING ONLINE

Website/App Layout:

 Homepage design

 Navigation structure

 Search functionality

 Filter options

Categorization:

 How products are organized

 Easy to find what you want

 Logical groupings
Visuals/Videos:

 High-quality product images

 360° views

 Video demonstrations

 User-generated content

AR/VR Product Trials:

 Virtual try-ons (sunglasses, makeup)

 See furniture in your room

 Reduces returns

ANIMATIONS / EXPERIENCE

Live Chat:

 Instant customer support

 Answer questions in real-time

Virtual Try-Ons:

 AR makeup application

 Virtual fitting rooms

 Size recommendations

Interactive Videos:

 Clickable product videos

 Shoppable content

Gamified Shopping:

 Spin the wheel for discounts

 Collect points for purchases

 Challenges and rewards

SERVICE ELEMENTS

Free Shipping:

 Reduces cart abandonment


 Often minimum purchase required

Easy Returns:

 Free return labels

 Extended return windows

 Hassle-free process

Loyalty Points:

 Earn points on purchases

 Redeemable for discounts

Personalized Recommendations:

 "You might also like..."

 Based on browsing/purchase history

 AI-powered suggestions

CULTURAL ADAPTATION ONLINE

Luxury Fashion in China:

 Live-streaming product demonstrations

 KOL (Key Opinion Leader) partnerships

 Social gifting features

 WeChat integration

E-commerce in Germany:

 Detailed product specifications

 Clear delivery information

 Price transparency

 Strong data privacy

 Prefer bank transfer over credit cards

🔄 OMNICHANNEL INTEGRATION

What is Omnichannel? Seamless experience across OFFLINE & ONLINE


channels.
Key Features:

Buy Online, Pick Up In-Store (BOPIS):

 Order on website, collect in store

 Saves shipping costs

 Immediate availability

Digital + Physical Integration:

 Store staff with tablets showing full inventory

 QR codes in store linking to product info

 Digital receipts

Cross-Channel Loyalty:

 Points earned offline → redeemable online

 Online browsing history → personalized in-store recommendations

 Single customer view across all channels

Coordinated Marketing:

 Online ads drive foot traffic to stores

 In-store experiences promoted online

 Consistent messaging across channels

Example: Nike

 Browse on app

 Reserve in store

 Try in person

 Buy online for home delivery

 Return in any store

 Earn points everywhere

Important: Omnichannel requires coordinating global AND local


marketing strategies!

📢 PART 2: PROMOTION

🎤 PROMOTION OVERVIEW
What is Promotion? Communication to INFORM, PERSUADE, and
REMIND customers.

Channels:

 Offline (TV, print, events)

 Online (social media, email, websites)

Goal: Build AWARENESS, ENGAGEMENT, and LOYALTY across international


markets.

Key Point:

 Promotion is MORE than advertising

 It's about creating EXPERIENCES that engage customers

 Must consider media habits, cultural norms, platform usage

📺 OFFLINE PROMOTION

ADVERTISING

Media Types:

 TV: Wide reach, emotional impact, expensive

 Radio: Local targeting, cost-effective, audio-only

 Print Media: Newspapers, magazines, targeted audiences

IN-STORE COMMUNICATION

POP Displays:

 Point of purchase materials

 Impulse buy triggers

Product Demos:

 Live demonstrations by staff

 Hands-on experience

Workshops:

 Beauty tutorials (Sephora)

 Cooking classes (supermarkets)

 Tech training (Apple)


Events:

 Store openings

 Product launches

 Celebrity appearances

 Seasonal celebrations

PR / MEDIA

Press Releases:

 Announce news to media

 Generate coverage

Trade Fairs:

 Industry exhibitions

 B2B networking

 Example: CES, Fashion Week

Exhibitions:

 Showcase products

 Interactive displays

PARTNERSHIPS & SPONSORSHIPS

Collaborations:

 With local brands

 With celebrities

 With influencers

Sponsorships:

 Sports events (FIFA sponsors: Coca-Cola, Adidas)

 Cultural festivals

 Charity initiatives

Service / Experience:

 Product sampling (perfume testers, food tastings)


 Expert demonstrations

 VIP experiences during events

💻 ONLINE PROMOTION

DIGITAL ADVERTISING

Social Media Ads:

 Facebook, Instagram, TikTok

 Targeted based on interests/demographics

Search Engines:

 Google Ads

 Appear when people search

 Pay-per-click

Display Banners:

 Visual ads on websites

 Retargeting (following users around web)

CONTENT & INFLUENCER MARKETING

Content Marketing:

 Blogs (SEO-friendly articles)

 Social media posts

 Video tutorials

 How-to guides

Influencer Marketing:

 Partner with influencers

 Authentic endorsements

 Access to their audience

Live Streaming:

 Product launches

 Q&A sessions
 Behind-the-scenes content

 Very popular in China (Taobao Live)

INTERACTIVE CAMPAIGNS

Contests:

 Social media contests

 User-generated content

 Example: "Share your best photo using our product"

AR/VR Try-Ons:

 Virtual makeup (L'Oréal)

 Virtual furniture placement (IKEA)

Gamification:

 Points for engagement

 Badges and achievements

 Leaderboards

ONLINE PARTNERSHIPS & SPONSORSHIPS

Co-Branded Campaigns:

 Two brands collaborate online

 Shared audience benefits

E-commerce Collaborations:

 Exclusive products on platforms

 Limited edition drops

🔄 OFFLINE & ONLINE INTEGRATION TABLE

SERVICE / CULTURAL
OFFLINE ONLINE
EXPERIENCE CONSIDERATION

TV, print, radio Social media, Consistent Tone and humor must
ads display ads, messaging, fit local culture
search cross-channel
SERVICE / CULTURAL
OFFLINE ONLINE
EXPERIENCE CONSIDERATION

storytelling

Product
Interactive
In-store experiences Timing, relevance,
content, live
promotions, POP, online and event format
streaming,
demos, events complement in- differ by culture
gamification
store demos

Partnerships & Online Extend offline Choose


sponsorships: collaborations, sponsorship influencers/partners
celebrities, influencer online for credible in local
events, brands campaigns engagement culture

Reinforce Local media


PR / media Online PR, blogs,
reputation consumption and
coverage social mentions
across channels trust patterns vary

🎯 KEY TAKEAWAYS - TUTORIALS 8 & 9

PRODUCT:

 Standardization = same product everywhere (Coca-Cola)

 Adaptation = modified for local markets (McDonald's)

 Consider 3 product levels: Core benefit, Actual product,


Augmented product

 Mandatory vs Discretionary adaptations

 Brand architecture: Horizontal crunch (reduce range) or Vertical


crunch (expand categories)

PRICE:

 4 pricing policies: Skimming, Penetration, Alignment, Cost-based

 Global pricing challenges: Currency, inflation, tariffs, logistics,


purchasing power

 Standardized vs Differentiated pricing

 Cost-plus vs Value-based pricing

PLACE:

 Offline + Online + Social selling = Omnichannel


 Merchandising is communication tool

 Service/Experience drives loyalty

 Cultural adaptation essential

PROMOTION:

 Offline = TV, print, events, in-store, PR, partnerships

 Online = Social media, content, influencers, interactive campaigns

 Integration = consistent message across channels

 Cultural sensitivity in tone, timing, partnerships

📝 EXAM PREPARATION TIPS

Common Question Types

1. Compare Standardization vs Adaptation

 Define both

 Give pros/cons

 Provide brand examples

 Explain when to use each

2. Explain Pricing Strategies

 List the 4 main approaches

 Describe each briefly

 Give examples

 Apply to a case

3. Analyze Place Strategy

 Offline channels

 Online channels

 Omnichannel integration

 Cultural adaptation

4. Describe Promotion Mix

 Offline methods

 Online methods
 How they integrate

 Service/experience focus

Answer Structure

For any question:

1. DEFINE the concept (2-3 sentences)

2. EXPLAIN how it works (4-5 sentences with examples)

3. APPLY to the case study or give concrete examples

4. CONCLUDE with a recommendation or summary

Example:

"Product standardization means marketing a product without changes


across markets, ensuring uniformity in materials, packaging, and
branding. [DEFINITION]

Coca-Cola uses this strategy globally with its iconic red logo and bottle
design, creating consistent brand recognition worldwide. [EXAMPLE]

For our brand entering Germany, standardization would work well


because... [APPLICATION]

Therefore, I recommend a standardized approach with minor packaging


adaptations for language requirements. [CONCLUSION]"

🎲 QUICK QUIZ - TUTORIALS 8 & 9

1. What's the difference between standardization and adaptation?


→ Standardization = same product everywhere; Adaptation = modified for
local markets

2. Name the 3 product levels. → Core benefit, Actual product,


Augmented product

3. What's penetration pricing? → Starting with LOW price to gain


market share, then raising it

4. What's the difference between cost-plus and value-based


pricing? → Cost-plus = based on costs + margin; Value-based = based on
perceived customer value

5. What does omnichannel mean? → Seamless integration of offline


and online channels
6. Name 3 offline promotion methods. → TV ads, in-store events,
sponsorships, product demos, PR

7. Name 3 online promotion methods. → Social media ads, influencer


marketing, interactive campaigns, content marketing

8. What's the key difference between merchandising offline vs


online? → Offline = physical displays and layout; Online = website design
and digital experience

🌟 FINAL STUDY CHECKLIST

✅ I understand standardization vs adaptation ✅ I can explain the 3 product


levels ✅ I know mandatory vs discretionary adaptations ✅ I understand the
4 pricing policies ✅ I can compare cost-plus vs value-based pricing ✅ I
know offline vs online place strategies ✅ I understand omnichannel
integration ✅ I can list offline promotion methods ✅ I can list online
promotion methods ✅ I understand how to integrate promotion across
channels ✅ I can apply these concepts to a case study ✅ I can give
concrete brand examples for each concept

If you checked all boxes → YOU'RE READY! 🎉

📖 KEY VOCABULARY - TUTORIALS 8 & 9

Product Terms:

 Standardization = Standardisation

 Adaptation = Adaptation

 Core Benefit = Bénéfice principal

 Actual Product = Produit tangible

 Augmented Product = Produit augmenté

 Brand Architecture = Architecture de marque

 Horizontal Crunch = Réduction de gamme

 Vertical Crunch = Extension de gamme

Price Terms:

 Skimming Pricing = Écrémage

 Penetration Pricing = Pénétration

 Alignment Pricing = Prix d'alignement


 Cost-Based Pricing = Prix basé sur les coûts

 Value-Based Pricing = Prix basé sur la valeur perçue

Place Terms:

 Omnichannel = Omnicanal

 Merchandising = Merchandising

 Selective Distribution = Distribution sélective

 Flagship Store = Magasin amiral

Promotion Terms:

 Sponsorship = Parrainage

 Partnership = Partenariat

 Influencer Marketing = Marketing d'influence

 Content Marketing = Marketing de contenu

 Live Streaming = Diffusion en direct

GOOD LUCK WITH YOUR STUDIES! 💪📚🎯

You now have complete coverage of Tutorials 1-9. Review each section,
practice the quizzes, and you'll be fully prepared for your exam!

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