International Marketing Concepts and Strategies

The assignment details provide an in-depth examination of international marketing, including its scope, key concepts, and strategies. The document explores the features of international marketing, such as importing and exporting, joint venturing, franchising, and licensing. It also discusses the advantages and disadvantages of international marketing, highlighting the benefits of increased profit, employment, and foreign exchange earnings. The summary provides a concise overview of the assignment's content and significance.

Analysing the scope and key concepts of International Marketing
(P1)
According to CIM (2001), marketing is “the management process responsible for
identifying, anticipating and satisfying customer requirements profitably.”
International marketing is the business activities performed by organisations to
design the planning, pricing, promoting and directing the flow of a company’s goods
and services to the consumers across the border in order to make profit. (Marketing
lessons ,2019).
Features of International Marketing
 Business activities operate in more than one country.
 Organisations need to be committed philosophically to satisfy both foreign and
local demand.
 Companies may appoint domestic or foreign overseas middlemen to
coordinate the activities.
 A tough management is required to carry out proper market research.
 According to the foreign consumers’ demand, international business
producers change their product or company’s policy.
Technology also plays a vital role to become successful in international marketing. It
is well known that developed countries like the USA, Germany or japan dominate
international marketing as they are using highly advanced technology in establishing
a brand name, promoting, marketing and production. At present, Japanese products
have captured the global market massively because of their effective use of
advanced computer technology. (Tutorialspoint,2019).
Examples:
McDonalds did a broad market research before entering the Indian market. They
customize their menu according to the Indian consumer taste. Although beef and
pork recipes are very much popular in other markets, they have shown due respect
to Indian culture by not serving menus with these ingredients. They also offer 40%
pure vegetarian menus which are quite unlike in overseas markets. Besides,
McDonalds uses Indian spices to create recipes to match the local flavour.
(Marketinglessons, 2019).
The renowned tech giant Apple assembles the majority of their iPhone in china.
Technically, the components of iPhone manufactured from different countries are
sent to two companies called Foxconn and Pegatron to assemble which are based in
Taiwan. And Foxconn is currently maintaining factories in other countries worldwide.
They coordinate their cost-effective activities and promote their brand image. That's
how the marketing activities of Apple are expanded in all over the world and they are
tremendously successful. (Lifewire,2019).

Source: Maritsa Patrinos,2019.
Five examples of powerful global branding in action.
•Airbnb. when Airbnb turned into first launched, the emblem confronted a massive
project: convincing humans around the world that staying in a stranger's domestic is
not weird or horrifying.
• Starbucks.
• Coca-Cola.
• Ikea.
Scopes of International Marketing

6. Import and Export
Importing is the process of purchasing goods or services manufactured in foreign
countries to sell them in the domestic market. Generally, businesses get help from
import to improve their own manufacturing line. Example: Tesco Lotus currently
exports Thai fruit and vegetables to other Tesco stores around the world.
7. Exporting means transporting local company’s products or services outside the
border to distribute its market in order to increase profitability and promote brand
name. Example: Tesco imports various kinds of products like banana, corned beef,
citrus fruits from different countries including Spain, south Africa, Ecuador, costa
Rica etc. (Tescoplc, 2016).
8. Joint Venturing
When two or more companies create an agreement to undertake all the financial
activities and risk together calls joint venturing. This is a collaborative affiliation
where two parties utilize their resources to accomplish specific tasks. For example,
Google Earth is developed by NASA and Google together. (Tutor2u, 2020).
8. Franchising
Franchising means a company or individual has granted authorization from an
international company or government to gain the right of trading and producing
marketing and distributing under a well-known brand name. Example: McDonald,
pizza hut.
9. Licensing
When a company allows another company to manufacture their products and give
the rights to apply their intellectual properties like copyrights, trademark, technology,
patents and work methods in exchange for specified payment called the licensing.
(Entrepreneur, 2020). For example, Calvin Klein earns 90% of the sales ($160
million a year) from licensing their designer’s name to the manufacturers of perfume,
jeans and underwear.
Although there are many benefits and difficulties of entering into international
markets, organisations have to expand their business in order to increase profit,
foreign exchange, employment etc which is beneficial for both international and
domestic business.
Key Concepts of international Marketing
In order to challenge the international competitors, there are some key concepts
required to follow for international marketing which are discussed below:
 In international marketing, the market is broader than the local market. The
population of foreign countries can also be targeted.
 At least two sets of uncontrollable variables are involved in international
marketing, in some cases more, if they deal with more countries. Contrarily, in
domestic marketing organisations need to interact with only one set of
variables.

 To enter the foreign markets, companies need to increase their production
in large numbers to meet their targeted country’s customer demand. As a
result, the sales increase which leads to profitability.
 A well trained and experienced workforce is needed to create innovative ideas
and new products. The broader competence and special management skill
are helpful for increasing production and sales.
 The competition is high in international marketing, because the marketers
need to compete with both local and international rivals.
Proper utilization of outsourcing minimises costs and waste. An appropriate
production and marketing strategy are useful for effective pricing and cost
saving (Learnpick,2017).
 There are many components that put international marketing in high risk and
challenges like changes in rules and regulations, political instability, cultural
differences, existing competitors, language barriers, changes in fashion and
style, weather, sudden war etc.
 A strong brand position is beneficial for business growth as well as increased
numbers of customers, sales and profit.
Advantages of international marketing:
1. Reduces value: If a corporation is production a very good in larger quantities it
automatically reduces its price. So, if groups function in international promote it gains price
competency in local and international market.
2. Can address seasonal fluctuations: A corporation manufacturing iciness wears may have a
market call for a confined time if its miles working in only one marketplace. So, to address
such kind of situations groups want to head globally to create call for his or her products.
3. will increase profit: more income equals to extra profit. So, it's far beneficial for companies
to enter worldwide markets.
4. Earns forex: running in other nations facilitates a employer earn forex for the country.
5. Employment: it enables create employment home u. s. and host country.
Disadvantages of international marketing:
1. Specific way of life: It isn't always essential that the employer find identical subculture in
each domestic United States of America and host u. s.
2. Struggle: if in any case a warfare breaks in host u. s. then the corporation might be at loss.
3. Infrastructure: infrastructure inside the host us of a may not be that evolved which would
possibly create limitations for the organisation.
4. Authorities’ policies: rules of the government n host u. s. a. might not be very supporting.
5. Marketing blend: organization might ought to expand a totally unique advertising blend for
its product in host united states of America than in home united states of America in an effort
to incur value.
Conclusion:

There are numerous benefits and drawbacks of getting into overseas markets, but corporation
have to try to extend their commercial enterprise. It additionally consequences in proper
members of the family with overseas land and it's also excellent for the house country
because it increases income, foreign exchange, employment and many others.