the implications for marketing of increased globalisation and economic collaboration

8.2 Marketing Strategy – International Marketing

Objective

To understand the implications for marketing of increased globalisation and economic collaboration, and to be able to plan, implement and evaluate an international marketing strategy that is fully aligned with the organisation’s overall business objectives.

1. What is Globalisation?

Globalisation is the increasing integration of world economies, cultures and populations, driven by cross‑border trade, investment and the rapid spread of technology.

2. Key Drivers of Globalisation

• Trade liberalisation – free‑trade agreements (EU, USMCA, CPTPP), WTO rules.
• Transport & communications advances – container shipping, low‑cost airlines, broadband, 5G.
• Multinational enterprises (MNEs) and cross‑border alliances.
• Regional economic collaboration – ASEAN, Mercosur, African Continental Free Trade Area.
• Consumer convergence – similar lifestyles, aspirations and media consumption across markets.
• Digital platforms – social media, e‑commerce marketplaces and AI‑driven services that enable pan‑global branding.

3. Planning the International Marketing Strategy

3.1 Linking Marketing Objectives to Business Objectives

• Corporate (business) objectives define the overall direction of the firm (e.g., profit growth, market‑share targets, sustainability goals).
• Marketing objectives must be derived from, and support, these corporate aims. For example, if the corporate goal is “increase total group profit by 10 % in three years”, a marketing objective could be “grow sales of the new eco‑friendly product line by 15 % in the EU market within 18 months”.
• Using the SMART framework (Specific, Measurable, Achievable, Relevant, Time‑bound) ensures that marketing objectives are clear, quantifiable and directly linked to the broader business strategy.

3.2 Benefits & Limitations of Marketing Planning

3.3 Key Steps in the Planning Process (International Context)

1. Situational analysis – apply PEST, SWOT, Porter’s Five Forces and the Ansoff Matrix for each target market.
2. Marketing objectives – set SMART objectives that are consistent with corporate goals.
3. Resource allocation & budgeting – identify the financial, human and technological resources required for each market.
4. Marketing‑mix decisions – determine product, price, place and promotion strategies, deciding the appropriate balance of standardisation and adaptation.
5. Implementation timetable – schedule activities, assign responsibilities and set milestones.
6. Control & evaluation – decide on KPIs, monitoring systems and contingency plans.

4. Approaches to Marketing Strategy

• Consistency with business, product and market objectives – the marketing plan must reinforce the firm’s overall strategy, the positioning of the product and the characteristics of the chosen market.
• Co‑ordinated (integrated) strategy – ensure that product, price, place and promotion decisions are mutually reinforcing across all markets.
• Specific marketing objectives – e.g., “Increase market share in the Southeast Asian ready‑meal segment from 5 % to 9 % within 24 months.”

5. Strategies for International Marketing

5.1 Standardisation vs. Adaptation (Product Strategy)

5.2 Pricing Strategy

• Take account of exchange rates, tariffs, import duties and local purchasing power.
• Price‑skimming in high‑income markets; penetration pricing in price‑sensitive economies.
• Transfer‑pricing and intra‑company pricing to optimise profit allocation across subsidiaries.
• Dynamic pricing enabled by AI – real‑time adjustment to demand, competition and currency movements.

5.3 Distribution (Place) Strategy

• Entry‑mode options: export, licensing, franchising, joint venture, wholly‑owned subsidiary.
• Design efficient logistics networks (hub‑and‑spoke, cross‑docking) to minimise lead times.
• Partner with local distributors or agents to leverage market knowledge and regulatory compliance.
• Use digital fulfilment (e‑commerce platforms, drop‑shipping) where appropriate.

5.4 Promotion (Communication) Strategy

• Adapt advertising messages to cultural norms, language and legal restrictions.
• Blend global campaigns (common slogan, visual identity) with locally‑tailored media mixes.
• Exploit digital platforms (social media, programmatic advertising) that allow geo‑targeting and AI‑driven audience segmentation.
• Leverage influencers and local celebrities for cultural relevance.

5.5 Role of IT & AI in International Marketing

• AI‑driven market segmentation – clustering customers across borders based on behaviour and propensity to buy.
• Programmatic advertising – automated buying of media space in real time, optimised by machine learning.
• Predictive analytics for pricing – forecasting demand elasticity in each currency zone.
• Big‑data dashboards for real‑time monitoring of sales, social sentiment and supply‑chain performance.

6. Choosing Markets & Entry Modes

6.1 Market‑Selection Checklist

6.2 Entry‑Mode Selection – Factors & Matrix

Choose an entry mode by weighing the following factors:

7. Strategic Analysis Tools for International Marketing

• PEST analysis – Political, Economic, Social and Technological forces in each target country.
• SWOT analysis – Internal strengths & weaknesses versus external opportunities & threats.
• Porter’s Five Forces – Threat of new entrants, bargaining power of buyers & suppliers, threat of substitutes, competitive rivalry.
• Ansoff Matrix – Market penetration, market development, product development, diversification.

8. Ethical, Sustainability & CSR Considerations

• Adopt a triple‑bottom‑line approach – economic, social and environmental performance.
• Ensure supply‑chain transparency to avoid labour exploitation and environmental damage.
• Comply with local and international standards (e.g., UN Global Compact, ISO 14001).
• Use “green” branding only when substantiated – avoid green‑washing.
• Consider the impact of pricing and product placement on vulnerable consumer groups.

9. Risks and Challenges of International Marketing

1. Political and regulatory risk – sudden changes in trade policy, tariffs or legal restrictions.
2. Currency‑fluctuation risk – can erode profit margins; mitigated by hedging or pricing in stable currencies.
3. Cultural misinterpretation – leading to brand damage or sales loss.
4. Supply‑chain complexity – longer routes, multiple intermediaries, higher exposure to disruption.
5. Intellectual‑property protection – higher risk of infringement in some jurisdictions.
6. Ethical and sustainability pressures – consumer activism and stricter regulations.

10. Illustrative Case Study: Fast‑Food Chain Expansion in Southeast Asia

A global fast‑food brand entered a new Southeast Asian market. The core menu (burger, fries) was retained (standardisation) while rice‑based meals and locally‑spiced sauces were added (adaptation). Pricing was set 15 % lower than in the home market to reflect lower average disposable income. Promotion featured a popular regional pop star and used TikTok’s geo‑targeted ads. The entry mode was a joint venture with a local restaurant group, providing market knowledge and shared political risk.

11. Summary Checklist for International Marketing Planning

• Conduct a full situational analysis using PEST, SWOT, Porter and Ansoff.
• Set SMART marketing objectives that are directly linked to corporate goals.
• Choose the appropriate balance of standardisation and adaptation for each of the 4 Ps.
• Apply the market‑selection checklist to assess attractiveness.
• Select an entry mode that matches risk tolerance, resource commitment and need for local knowledge.
• Incorporate AI‑driven tools for segmentation, pricing and digital promotion.
• Factor exchange rates, tariffs, purchasing power and local cost structures into pricing decisions.
• Plan logistics and distribution networks that minimise lead times and cost.
• Embed ethical, sustainability and CSR considerations throughout the strategy.
• Establish KPIs, monitoring systems and contingency plans to control and evaluate performance.