Specific communication topic

Internationalization 1 Deciding whether to go abroad

Internationalization 2 Deciding which markets to enter

Internationalization 3 Deciding how to enter the market

Internationalization 4 Deciding on the market strategy and program

Internationalization 5 Deciding on the market organization.

Proactive motives for internationalization 1 Profit and growth goals

Proactive motives for internationalization 2 Managerial urge

Proactive motives for internationalization 3 Technology competence/unique product

Proactive motives for internationalization 4 Foreign market opportunities/market information

Proactive motives for internationalization 5 Economies of scale

Proactive motives for internationalization 6 Tax benefit

Reactive motives for internationalization 1 Competitive pressures

Reactive motives for internationalization 2 Domestic market small and saturated

Reactive motives for internationalization 3 Overproduction excess capacity

Reactive motives for internationalization 4 Unsolicited foreign orders

Reactive motives for internationalization 5 Extend sales of seasonal products

Reactive motives for internationalization 6 Proximity to international customer psychological distance

Risks Stock prices can plumet, become irrelevant.

Early stages of internationalization 1 Insufficient finances

Early stages of internationalization 2 Insufficient market knowledge

Early stages of internationalization 3 Lack of foreign market connection

Early stages of internationalization 4 Lack of Commitment

Early stages of internationalization 5 Lack of productive capacity

General Markets Risks 1 Comparative market distance ( Culture, language, etc)

General Markets Risks 2 Adaptation to foreign markets ( Modification of the production process and marketing), cars are made different due to the local market, sometimes warnings needs to be on certain products

General Markets Risks 3 Competition from other firms in foreign markets

General Markets Risks 4 Adapting products and services to new local conditions, (e.g. new laws), Paris banning E-scooters

General Markets Risks 5 Difficulties in finding the right distributor

Commercial risks 1 Exchange rate fluctuations

Commercial risks 2 Failure of reign customers to pay ( contact dispute, bankruptcy, fraud)

Commercial risks 3 Delay or damage to the shipped products

Political risks 1 Important restrictions by foreign government

Political risks 2 National export policy

Political risks 3 Lack of tax incentives for companies that export

Political risks 4 confusing foreign import regulations and procedures

Political risks 5 Complexity of trade documentation

Political risks 6 Revolutions and war in foreign markets

When it's time to go international: firm Degree of internationalization and overseas experience, Size/ amount of resources, Type of industry/ nature of the business, Internationalization goals, Existing networks and relationships

When it's time to go international: environment International industry structure, degree of internationalization of markets, host country .

Environment host country Market potential, competition, psychic/ geographic distance, market similarity

Blue market Unserved market, relatively unknown, competitor not yet established, head to head competition is avoided.

Red markets Mature industries, either cheapest or the best, competitors are known, tough head to head competition, competition on price and quality.

Requirements for entering new countries 1 Develop a global marketing based on similarities and differences between markets ( e.g cultural)

Requirements for entering new countries 2 Exploit the knowledge of the headquarters through worldwide diffusion ( learning) and adaptation

Requirements for entering new countries 3 Transfer knowledge and best practies from any of its markets other international markets.

How can product life cycle differ Depending on the country life cycles of a product can look different.

How to keep a product alive Cost reduction

How to keep a product alive Reposition existing product

How to keep a product alive Line extension / improvements to existing products

How to keep a product alive New to the company

How to keep a product alive New to the home country

How to keep a product alive New to the international markets

How to enter a international market the organic way Start with the local market, A, b, & C, New markets is psychically close to the home market

How to enter a international market the born global way You export to more than one market at the time, you don´t have a homebase market

Uppsala model Extending to foreign markets step by step as their experience grows.

Negatives with the Uppsala model its nota linear process.

Definition of a born global company 1 Firms that from the moment start up globalizing rapidly without any preceding long-term domestic or internationalization period.

Definition of a born global company 2 possible thanks to advances in communication technology which have accelerated the spend of information flows

Definition of a born global company 3 born global have stronger customer orientation, possess unique assets and usually focus on a narrow global market segment

Uppsala model Waterfall approach

Born global Shower approach

What is the visible culture on the top of the iceberg Food, art, dance, language, traditions

What is the invisible culture and middle of the ice berg Beliefs, values, worldviews

What is the bottom of the ice berg common humanity the way we all love, laugh, cry, seek dignity and find the meaning of our lives.

What is the definition of high context culture What is not being said is more important than what is being said.

High context culture characteristics Context at least as important as what is actually said

High context culture characteristics What is not being said can carry more meaning than what is said

High context culture characteristics focuses on group development

What is the definition of low context cultures Direct, what is being said is more important than what is not being said

Low context culture characteristics most of the information is contained explicitly in words

Low context culture characteristics What is said is more important that what is not being said

Low context culture characteristics Focuses on individual development

Examples of high context cultures Japan, Arab, Latin America

Examples of low context cultures Swiss, Germany, Scandinavians

Hofstede 6 cultural dimensions Power distance, individualism vs collectivism, Masculinity vs femineity, Uncertainty avoidance, long vs short term orientation, indulgence vs restraint

Ethnocentric The needs of the home country are most relevant and there is highly centralized control of foreign business activities

Polycentric Each country is considered as unique and targeted in a different way by adapting to the local conditions

Regiocentric The world consist of regions ( e.g Europé, asia, middle east) and the firm integrates and coordinates its marketing programme within regions, but not across them.

Geocentric The firm offer global product concepts but with local adaptation ( think global, act local)

Core benefits Functional features, preformance, perceived value, image, technology

Product attributes brand name, quality, packaging, design, size, colour variants, country of origin, price, staff behaviour

Support service delivery, installation, guarantees, after service repair and maintenance, spare parts

Solution to standardizing service across countries Centralizing production orientated functions but decentralizing market orientated functions

Glocalization Mixing both globalization and localizing strategies.

Global Low cost production and selling, high speed, low complexity

Brand identity How the company aims to identify or position itself in the mind of the consumer.

Brand image The way consumer actually perceive the brand

Brand knowledge All the thoughts, feelings, images experiences and beliefs that become linked to the brand in consumers mind

Brand equity Added value that the brand gives a product or service compared with its generic equivalent

Products The brand is so weak that it has no meaning beyond its functionality

Concept brand Carries some emotional values that call for increased involvement

Corporate concept Brand that reflects the corporate strategy and expresses a wider philosophy that extends throughout the company

Brand culture Brand fully embedded in consumers social lives.

Brand religion Brand is viewed as a total way of life

Lovebrands brands who get high love and high respect from customers

How to define global brands company origins: Local brands produced by local company only in its country of origin.

How to define global brands company origins: global brands Produced by a foregin company and has presents in many countries.

How to define global brands company market presence: Local brand Presents only in one country

How to define global brands company markets presence: global brands Present in more than one country.

How to define global brands company consumer market presence perception: Local brand Perceived as being locally available.

How to define global brands company consumer market presence perception: global brand Perceived as being globally available and accepted

Perceived Brand Globalness ( PBG) The extent to which a brand is perceived to be available consumed in more than just the local market

What is the negative side of being PBG standardization across markets can offset people, anti-global consumer segments.

Can a brand both be PBG & PBL Yes

How can a brand be both PBG & PBL combining global availability with local origin or by adapting to the local market despite being global.

What is GCCP short for Global consumer culture positioning

GCCP Positioning a brand on a set of universal values, beliefs and symbols that Develop through contributions from knowledge in different parts of the world

GCCP Positioning a brand on a set of universal values, beliefs and symbols that 3 Symbolize a connectedness with the world regardless of heritage or residence

When to use GCCP Segments associating with global citizenship

When to use GCCP 2 Developing countries with significant reference group influences

When to use GCCP 3 Segments sharing same attitude, lifestyle and aspirations around the world

When to use GCCP 4 Product values: progress modernity, technological advancement.

What is LCCP short for Local consumer culture positioning

FCCP Positioning a brand on a set of universal values, beliefs and symbols that are characteristic of one´s country of residence

FCCP Positioning a brand on a set of universal values, beliefs and symbols that 2 distinguish uniquely this country from other countries.

When to use LCCP Ethnocentric market segments

When to use LCCP 2 consumer segments high on local identification

When to use LCCP 3 competitive advantage lies in locality

When to use LCCP 4 consumer animosity towards the actual country of origin

When to use LCCP 5 The brand benefits the local community (e.g) production sites

What is FCCP short for Foreign consumer culture positioning

FCCP Positioning a brand on a set of universal values, beliefs and symbols that Originate from and are represented by an identifiable foreign country

FCCO Positioning a brand on a set of universal values, beliefs and symbols that 2 are known either as the culture of origin or an aspired to foreign country

When to use FCCP The product is associated with a specific country foreign culture/ country

When to use FCCP 2 The country has a special reputation for this product category

When to use FCCP 3 The foreign culture is an attractive culture for the targeted segments

When to use FCCP 4 Cosmopolitan markets segment

When to use FCCP 5 Stress on authenticity

What is an Identity any category label to which a person self-associates can be an identity

What is a local identity Consumer feel they belong to their local community and identify with local ways of life

What is a global identity Consumer feel they belong to the global community and identify with a global lifestyle.

Local identity characteristics faith and respect local traditions and customs

Local identity characteristics recognition of the uniqueness of local communities

Local identity characteristics interest in local events

Global identity characteristics Belief in positive effects or globalization

Global identity characteristics Recognition of commonalities rather than dissimilarites among people around the world

Global identity characteristics Interest in global event

What is the European identity Its an identity tied to being a member to the European union its both local and global, with a preference for both domestic and foreign products '

Ethnocentrism when you belief your own group is the centre of the universe and dislikes the outgroup, home country bias

Ethnocentrism include the tendency to distinguish various groups

Ethnocentrism include the tendency to 2 preceive events in terms of groups own interest

Ethnocentrism include the tendency to 3 be supicious of other groups

Ethnocentrism include the tendency to 4 view the in group as superior, strong and honest

Ethnocentrism include the tendency to 5 to see outgroups as inferior, weak and dishonest

Ethnocentric consumer think imported products is wrong because this hurts the domestic economy

Ethnocentric consumer think imported products is wrong because 2 Cause loss of jobs

Ethnocentric consumer think imported products is wrong because 3 is inappropriate, unpatriotic and immoral

Ethnocentric consumer think imported products is wrong because 4 Out-group products are perceived as inferior

Characteristics of a ethnocentric consumer less open to holistic, global worldview

Characteristics of a ethnocentric consumer 2 less open to other cultures

Characteristics of a ethnocentric consumer 3 low income consumers

Characteristics of a ethnocentric consumer 4 consumer with lower education

Characteristics of a ethnocentric consumer 5 more conservative and patriotic

Characteristics of a ethnocentric consumer 6 Believing in collectivist rather than individualistic values

Cosmopolitan open mindedness towards foreign countries and culture along as appreciating for their products and enjoys consuming them.

Cosmopolitan characteristics open mindedness towards foreign countries and cultures

Cosmopolitan characteristics Appreciates the diversity due the availability of products from different national and cultural origins

Cosmopolitan characteristics is positively disposed towards consuming products from foreign countries

What does open mindedness mean interest in other cultures, willingness to explore alternative systems of meaning, positive disposition to travel, live and work abroad.

What does diversity appreciation mean positive disposition towards the diversity offered by the availability of goods and services from different national and cultural origins

What does consumption transcending boarders mean Experiental consumption, value cultural commodities, exposure to internal media, culture and goods

Characteristics of a cosmopolitan consumer innovative consumer

Characteristics of a cosmopolitan consumer More willing to take risks to explore consumption alternatives

Characteristics of a cosmopolitan consumer Not susceptible to normative influences

Characteristics of a cosmopolitan consumer have heightened environmental concern and tendency for sustainability behaviour

The demographic of a cosmopolitan consumer Younger people

The demographic of a cosmopolitan consumer highly educated

The demographic of a cosmopolitan consumer with international experience and exposure

The demographic of a cosmopolitan consumer Living in urban areas

Alienated consumers 12% neither local nor cosmopolitan orientation, they seem to refrain from cultural issues in their consumption choices and might be considered as disinterested

Pure cosmopolitans 27% High level of cosmopolitanism, moderate attachment to their locality.

What is xenocentrism consumer they tends to prefer foreign products over their own local products

Characteristics of Xenocentric consumer Consistently feel attracted by the foreignness of a product

Characteristics of Xenocentric consumer Value foreign products more than domestic products despite their higher prices and sometimes even lower quality

Characteristics of Xenocentric consumer view the culture of their birthplace as being inferior while idealizing one or more other cultures

Consumer black box personal, cultural, social, psychological factors

Does Country of origin have an effect on consumers yes it can have a big effect.

What is COO short for country of origin

Do the product have to be made in the COO No

Why a brands COO matters Products identical in every aspect may be rated differently depending on their COO

Why a brands COO matters 2 The coo may act as a signal of quality

Why a brands COO matters 3 The COO may render symbolic value / prestige

Why a brands COO matters 4 The COO may affect the perceived risk ( social, financial, functional) associated with the purchase

Why a brands COO matters 5 The COO may impact willingness to pay

What is a country image components of Cognitions, Affects, Conation

What is a stereotype an over simplified and generic set of beliefs over a certain social group

Stereotype content model Competence capability efficiency intelligence & warmth friendliness, kindness, good natureness

What is country Affinity The feeling of sympathy, liking and attachment towards a specific foreign country based on exposure or experience with said country.

What is Country animosity the feeling of dislike about a country based on world events

GCCP Positioning a brand on a set of universal values, beliefs and symbols that 2 Are present and practiced across the world in a broadly similar way

Moderately attached consumers 34% Feel attached to both their local surroundings and a cosmopolitan lifestyle to some degree, while neither of these orientations dominates.

Local cosmopolitans 27% Highest level of local orientation while at the same time being highly cosmopolitan ( multiple loyalties)

Local Culturally close for consumer, flexible response to local customer needs, reginal and local market penetration

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