🎯 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!