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Concepts of International Marketing - Doc

   

Added on  2020-10-22

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INTERNATIONAL MARKETING

Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1Analyse the Scope and key concepts of International Marketing..........................................1LO 2.................................................................................................................................................4Evaluate entry to a selection of international Markets and define the key success factors....4Difference between global and local marketing.....................................................................8LO 3.................................................................................................................................................9How product, pricing, promotional and distribution is different various internation marketingapproaches used by companies...............................................................................................9LO 4...............................................................................................................................................11Different marketing approaches company can adopt...........................................................11CONCLUSION..............................................................................................................................13REFERENCES ................................................................................RECOMMENDATIONS on14

RECOMMENDATIONS onINTRODUCTIONInternational marketing is an application of marketing which focuses on satisfying theneeds and demands of the customer but in the foreign country (Armstrong and et. al., 2015).Only difference between domestic and internal marketing is that in latter part, all the marketingactivities are done for the people who resides in other country. For this report, Ocado is taken fordiscussion which is a online supermarket chain and has headquarter in Hertfordshire UK.Rationale would be provided for the company that why they should enter in to internationalmarket by describing its entry barriers. Different strategies would be elaborated which companycould use to enter into international market will be explained. Various elements of marketingplan will be discussed and how organisation can adapt it will be given below. At last,recommendation and suggestions will be provided so that company can maximize its opportunitywould be explained. LO 1Analyse the ScopCommunication and caree and key concepts of International MarketingOcado is English online supermarket whose focus is on home delivery high qualityproducts like, drinks, foods and household goods. Firm has no chain of stores and does alldelivery of products to it's customers from it's warehouse. The CEO of the organization is TimSteiner and was founded on April 2000. This company is located in United Kingdom, Hatfieldand the revenue generation is 159 million GBP (2018). Here are some of the food items firm isdealing in Ocado gold sliced Pancetta, Ocado Flat Leaf parsley, Ocado Original Blend Coffe etc.The online site on the firm is ocado.com (Rosson and Ford, 2016).International Marketing- International marketing a process of planning andexecution of elements which is related with the products and services like price, product, placeetc in the foreign company with the aim of satisfying needs and demands in exchange ofmonetary value (Morschett, Schramm-Klein and Zentes, 2015). In other words, it can be said thatit is a expansion of business in the foreign countries so that more market and customers sharewould be attracted to them. For instance, if Ocado starts providing their services in the newmarket then their revenue will automatically increased as new customers will be added in theirportfolio of customer.1

Key Concepts of International marketing There are various concepts of international marketing which is explained below withfunctional example, Domestic Marketing: Main focus of this concept is to target the customer which is in thesame country as company. Domestic organisation only operates their business in thespecific territory and after they reach their saturation point, company starts diversifiedtheir product range so that continuous flow of revenue would be attain by them. Forinstance, Ocado follows domestic marketing as their operations of work is limited withinthe UK only.Export marketing: This is the phase in which company starts grounding their operationsin the foreign country with the aim of enhancing customer share in the future.Organisation uses this step when they are getting high demand from the foreign countries.For instance, if Ocado is planning to export their product in to other market then theyshould deal with the local companies of that country or agents as without it it would notbe possible for them to sell it. Global marketing: It is a tactic used by the companies to reach their potential customersin foreign countries. Main motto of the organisation is to make the strategies according tothe country where they are operating as each have different buying behaviour, culture andbeliefs etc (Basic Global Marketing Concepts, 2018). For instance, their will be vastdifferent between the marketing strategies of Ocado in UK and in Switzerland as bothhave different behaviours which directly impact the strategies of company. Scope of international marketing is given below, International marketing assist company to enter into territory which they have never beenwhich results in new customers for the product and services they offered. For instance, ifOcado enters into other territory then there will be potential customers who are alreadybuying their products from other competitors or visiting shops physically to buy it. So byproviding them lower price or high quality products, they would be attracted towardsOcado which will leads to higher sales in the future. Internal marketing will help Ocado to get more new customers into new country wherewhich ends up in enhancing sales of the product and service thus higher profitability in2

future. . As mentioned above, if higher sales is attain by Ocado then revenue of thecompany will automatically increased which leads to higher profitability in future. Marketing assist company to get new customer in the market which ends up in increasingbrand name in the mind of potential customers. For example, after entering in to foreigncountry, Ocado will spend their funds in marketing their products and brand in the marketby advertising, promotion, sales promotions, CSR activities etc. All these factors willassist Ocado to enhance their brand awareness in the market as by seeing theadvertisement, customers would be aware about the brand. RationalToday business has so many opportunities that can provide them many advantages togrow fast and move from one place to another that can help them to explore new markets somepurpose which is discussed below why company should go internationally.If a company business is growing successfully in domestic market, then they should try toexpand themselves into international market. First it increase the revenue of a business byincreasing the sell of their products and with these the value, quality, and price of thereproducts is also increased.If a business have to face recession or there is low sale of their products in domesticmarket because of any economic issue than they should earn profits by exporting theirproducts.When a business expand themselves internationally they learn many more things likeinnovation because the demand of products is not similar between two countries so theyshould innovate their products as per demand of international customer.Last reason is that when a business expand themselves for the international market atthat time they gain the competitive advantage and other fact is that if a competitivecompany is entered in home market of other company then they should find solution todefence their home market. OpportunitiesChallenges Ocado has large number of customers inSwitzerland as there are few companies whichare operating in this industry. So company hasSwitzerland has many big players in the marketwhich are also doing the same business asOcado like Farmy.ch, LeShop.ch, Swiss Rasoi3

the chances of enhancing sales and profitabilityto a certain level. To attain this, marketingactivities should be plan according to the needsand demands of the potential customer. etc. So company has to make their strategies inrespect of the competitors and the environmentas then only strategies would become effectiveand efficient. By using the Brand image, Ocado can diversitytheir products in to Switzerland market withthe aim of getting higher ROI from it. Bydiversifying the product, customers fromdifferent sector would also attracted towardsOcado which leads to higher sales and revenuefor the company. As Brexit is on the verge, Ocado has to changetheir rules and regulations while entering in toSwitzerland which could affect theirperformance in a negative way. For instance,Ocado has to modify their import and exportrules, or hiring of people which could be riskyin nature if does not implement properly. LO 2Evaluate entry to a selection of international Markets and define the key success factorsInternational marketing makes a favourable impact in the performance of the company ifstrategies opted by them is according to internal as well as external market (Demangeot,Broderick and Craig, 2015). Various ways through which Ocado can opt to enter in toSwitzerland is given below, Import and Export: It is way of entering in to foreign countries by start selling theirproducts through agents or companies. In export, companies sell their product oversees sothat more revenue would be generated for the company. On the other hand, import refersto when foreign companies products are sell in to their homeland according to thedemand of potential customers.Joint Venture: It is an collaborative approach in which more than two companies comestogether to sell specific product with the aim of satisfying the needs of customer.Sometimes, collaboration often provide new company in the market while consideringthe mission and vision of both the organisation.Full Owned Manufacturing: If any organisation has long term strategies related to thecountry they are visiting then full owned manufacturing is one of the favourable way ofdoing so as whole profit goes in the balance sheet of company which they does not haveto share with (Kotler and et. al., 2015). But on the other side, there are various factors4

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