Concepts in International Marketing | Report

Added on -2020-02-14

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INTERNATIONAL
MARKETING
Table of Contents
ABSTRACT.....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Licensing, its use and advantages & disadvantages in comparison to other forms of market
entry.............................................................................................................................................1
QUESTION 2...................................................................................................................................3
Impact of Geography and History of Foreign marketing plans..................................................3
QUESTION 3...................................................................................................................................5
There is no single market strategies which is appropriate for all circumstances........................5
QUESTION 4...................................................................................................................................7
Strategic options to deal with Non Tariff Barriers......................................................................7
QUESTION 5...................................................................................................................................8
Impact of Product Life Cycle on Marketing Plans......................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
ABSTRACT
In the present context, there has been fast pace development and technological
advancements. It has enabled the contraction of the world boundaries and connected people and
components in the considerable manner. It is identified that International marketing has been the
crucial concept used in the contemporary trade and business. Organisation are releasing their
confinement to the home countries and expanding the domain of their offering beyond
geographical locations. In that regard they promote their products to the potential consumers in
other countries through different means which is referred as International marketing. There are
different approaches used in this concept and adopt the market entry strategy
INTRODUCTION
Licensing is the options chosen among the different market entry strategies when the
brand owner is confident about the acceptance of the products and services offered by consumers
in the significant manner through brand extensions in other countries and geographical locations.
Present report is prepared to elucidate the concept of International Marketing and its components
with respect to licensing as the market entry strategy. To conduct the research in precise manner,
Swedish home furnishing brand, IKEA is taken into account which is catering to launch its
product in India. Report throws light on the different concepts and practices in international
marketing.
QUESTION 1
Licensing, its use and advantages & disadvantages in comparison to other forms of market entry
Licensing is the process in which a brand owner in the home country caters to expand its
operations in another country through leasing their intangible assets. A contract is signed
between the owner of the brand and the licensee who wants to use the brand in association for a
particular time duration. It is one of the method used by companies to expand business on
different geographical locations (McDonald, 2011). There are certain situations in which it is
widely used and derive lucrative results to the brand and owner.
It is used in the situation when the brand owner is experiencing high rate of inflation and
unfavourable exchange rate value. In that condition it is found that it is viable to expand
business in some other country that has favourable conditions with the availability of
1
favourable inflation rate, adequate skilled-labour, liberalised government regulations and
restrictions and rationalised international competition.
Among the different market entry strategies, Licensing is the viable option in the
condition when the brand owner is having its operations in successful manner in the
home country. As per the market conditions it is identified that the demand of the
products and services offered by it exceeding the supply of their offerings. In that
condition brand owner caters to escalate its manufacturing capacity through providing
licensing to the individuals or groups in another country (Takano, 2009). It is viable in the situation in which brand owner is representing the multinational
organisation, possessing the innovative technologies. With the aim to commercial the
ideas in different geographical locations, brand owners adopt the option of Licensing.
Advantages of using Licensing
It enables the organisation to reach and expand in new market areas where it is unable to
leverage the benefits through exports from existing facilities.
It paves the way for the brand owners to have expansion through the future investments
There are many trade restrictions imposed by countries to inhibit the development of
foreign market. Hence, through licensing brand owners are able to retain the current
customer base and established markets (Wilson and Gilligan, 2015).
With the step adopted in the form of licensing it is found that risks are minimized in
different forms such as in the context of political and legal as licensee to whom it is
provided are locally owned.
There is minimum amount of risk associated with due to the expansion is done without
having so much time and capital investments that is required in other market entry
strategies. It is the lucrative means through which the country is able to generate revenues through
commercialising their ideas and know-how in other geographical regions.
Disadvantages of using Licensing
Adopting Licensing incur the less amount of incomes to the organisation such as the
profit margins are shared between the owners and licensee (Yan, 2016). Or in other case
the ratio is fixed in the context of the revenue distributed among the two parties and
hence it restricts the growth aspects and future development benefits.
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