Development of Global Marketing Concept and Real Business Environment

This report covers the development of global marketing concept and how it supports to the real business environment. Other things such as trade regulations, background information, political risks and economic environment of the country are also covered.

GLOBAL
MARKETING

EXECUTIVE SUMMARY
This report covers the development of global marketing concept and how it supports to the
real business environment. Other things such as trade regulations, background information,
political risks and economic environment of the country are also covered. Factors which affect
the business and measures that they need to evaluate before entering into a foreign market so
that the company can have an idea that if or not the market that they are entering has potential
for growth or not and if or not they are going to be accepted in that country.

Table of Contents
INTRODUCTION.......................................................................................................................2
TASK 1 .......................................................................................................................................3
Development of the global marketing concept...................................................................3
Research using academic sources, and discuss the development of a global marketing
concept................................................................................................................................3
Real business world that supports this portfolio.................................................................4
TASK 2........................................................................................................................................4
Background of India...........................................................................................................4
Political risks in India.........................................................................................................4
Trade, tariff & non-trade barriers between UK and India..................................................5
Economic environment of India.........................................................................................5
Advantages and disadvantages for UK company to move to India....................................5
TASK 3........................................................................................................................................6
What business the company is in........................................................................................6
Factors affecting the foreign market entry mode decision model and the right entry mode to
enter a new market..............................................................................................................6
TASK 4 .......................................................................................................................................7
Evaluate the advantages and disadvantages of using franchise method............................7
Benefits to choosing franchise for your fashion retailer....................................................8
CONCLUSION............................................................................................................................8
REFERENCES............................................................................................................................9

INTRODUCTION
Global marketing involves planning, producing, placing, and promoting a business' products
or services in the worldwide market. There is significantly more to global marketing than
simply selling goods and services internationally. This report gives a brief understanding
about the global market and how it is necessary for the company to achieve growth.
TASK 1
Development of the global marketing concept
The concept of global marketing states that different markets needs to be targeted all
over the world. In order to target different markets enterprise must be aware about the working
pattern, rules and regulations and language of that country. Apart from this, companies such as
Brightstar Financial to analyze the working and patterns of worldwide consumers and
suppliers. Global marketing includes all the factors such as maintaining the mobility,
competition and social business. Brightstar Financial needs to be aware of the global factors
such as competitors outside the country and threats in the market so that they can use the
channel of distribution effectively. Many of the companies believe that foreign market will be
an opportunity for growth. This will help the company to gain the benefit of competitive
advantage in the market (Magalhães and et.al., 2020).
Research using academic sources, and discuss the development of a global marketing concept
According to (Keegan, 2017) Global Marketing is basically the marketing technique
which enables the organizations to target the markets across the whole world and thus forms
the integral part of each and every organization. No matter whether the organization advertises
as well as markets their goods and products domestically or internationally, definition of the
marketing remain vague. However, scope of the marketing is generally broadened when
companies decide for selling across the international boundaries and this impacts their
business to a high extent. While discussing the globalization, language plays an important and
significant role as it is highly essential to communicate with the people of different countries
in order to take the brand message to wider audience. Not only does the language, but

organizations faces a large number of barrier when they market their goods as well as services
across boundaries. Most of the problems which are being encountered by foreign marketer
relates to strangeness of environment in which the marketing programs are generally
implemented. In accordance with (Kim, Hulland and Eom, 2018) Success mainly hinges on
the capability of organizations to assess and analyze the strange environment and achieve
competitive advantage in those markets. Global marketing not only addresses taking the
products and services on international platform but its concept basically comprehends to
understanding the cultural values, perceptions, beliefs, language of the people residing in that
country. As per the view of (Kotabe and Helsen, 2020) Before entering the new market,
organizations are required to have a thorough market research in order to evaluate that what
are the needs of customers, market trend, competitors etc. The theories and concepts of global
marketing says that an organization is only says to be successful when it has effectively gone
through the market in which it is planning to expand. Without having a proper and thorough
knowledge, organizations will become prey of high risks and threats which will impact their
operations and supply chain to a high extent (Leonidou and et.al., 2018).
Real business world that supports this portfolio
ERPG framework helps to focus on the operations of international market which helps
the company to take their operations upward. These framework helps the company to maintain
the relationship between the headquarters of the company and their subsidiaries which are
established in international markets. This aspect has its benefits and demerits such as
Merits-
If the company wants to adapt a product or service then the cost and level of efforts
required will be less. Apart from this method will help the company to provide a route which
will guide them to explore different markets which includes same features.
Demerits-
The main focus of this concept always remains on domestic market and there is no
opportunity for international human resources.
TASK 2
Background of India
India covers a large part of South Asia. Country has 29 states and each of them are
independent in controlling their own affairs. India is the second largest country in the world in

terms of population. India is a very diversified country which gives space to many castes and
tribes. The land of India is situated between 6 different countries and they are Pakistan,
Bangladesh, China, Nepal, Bhutan, Myanmar and Sri Lanka
Political risks in India
There are many factors which companies such as Brightstar Financial needs to look after
before starting their operations in India and that is
 Instability in decisions of government which slow down the growth of the country.
 Factor of corruption and inefficiency of bureaucracy.
 Changes in factors which includes rate of foreign exchange, import export, issues in
taxation and pricing. These changes are not predictable.
 Problems and issues related to culture, disputes between suppliers and management of
the company.
 Fluctuation in rate of interest and inflation in the country can affect the growth of
business.
 Interference in business which runs on small scale because of social and political
factors.
Trade, tariff & non-trade barriers between UK and India
There are many barriers in India such as restriction of goods on the basis of Import licensing.
Recently India has removed this barrier for most of the consumer goods available in the
market. Apart from this government of the country charges 1 per cent of duty on imported
goods as custom duty. On the other hand in UK does not have any kind of barrier on trade or
investment which is beneficial for the company. Companies such as Brightstar Financial can
easily transfer profits and capital without any restriction. Some of the barriers that are imposed
in UK are according to the regulations of EU which after Brexit will be changed.
Economic environment of India
After the policies of privatization, globalization and liberalization in India the economy
of the country has been stable in the market. Apart from these other policies such as industrial
licensing has also helped to maintain the flow of the country. Since the last year the GDP of
the country has been fallen down and as per the reports growth rate of the GDP is also poor
because of which many countries are putting a stop to invest in the country. Some of the key
players are investing because of the large market of the company.

Advantages and disadvantages for UK company to move to India
Advantages-
Brightstar has a large market to serve and increase more share in the market. Overall this will
help the company to increase their goodwill and tap different markets. They also have the
scope to increase the customer base of the company.
Disadvantages-
Although the economy of the country is not in a good condition which limits the growth of the
business as many companies have already shut down their operations and left the country. For
Brightstar Financial it will be a risky measure to come and serve to India.
TASK 3
What business the company is in
Brightstar Financial are primarily the financial distributor who mainly specializes
within residential mortgage and are the providers of the finance solution provided by a team of
specialists for UK market. It has its headquarter in Essex along with three more offices
throughout the country, The main aim of this company is to become the market leader as well
as shape future of the UK specialist finance. This company mainly helps the brokers to grow
their organization and business through offering knowledge as well as resources which are
necessary for diversifying into lending areas. This company encompasses a large number of
the lending areas and mostly includes short-term lending, commercial mortgages, development
finance, second charge mortgages etc. Each of these lending areas consist of the dedicated
team which is highly trained as well as skilled to provide the best expertise. It is partnership
with more than 125 lenders and in collaboration with them, Bright star provides a large
number of products as well as services. The main purpose of this company is to provide a
thorough support and guidance to each and every broker as well as IFA and provide the right
guidance to them. Brightstar receives the enhanced commission from large number of lenders.
Factors affecting the foreign market entry mode decision model and the right entry mode to
enter a new market
In order to enter the Indian market company has the option and right mode of entering is joint
venture. It will help the company to gain quick reputation in the market and establish
themselves so that after some time they can expand their operations on their own. Joint

venture will help them to gain quick access in the country and reduction of interference by
government.
Internal Factors-
Firm Size-
This aspect states that before entering into new markets company needs to look after
their current available resources which will be in the terms of financial or technical.
Companies which are operating on a small scale such as Brightstar Financial will need to
collaborate with some in order to expand their operations due to unavailability of funds.
Network-
This is an essential factor when the company is looking for expanding their operations.
If the company is looking to enter in emerging countries then they will need to focus on this
aspect because this will help them to know the inner details and conditions of the country
which can help them to come up with their own strategies (Quelch, 2017).
External Factors-
Potential of Market-
This aspect helps the company to assess that how much growth they will be able to
make in how much time. This factor influences the decision of the company to enter and
commence their operations. It is believed that larger the market larger they will be able to earn
(Schultz, 2017).
Country risk-
This factor is concerned with the economic and political condition of the country as
these factors helps to determine the growth of the company in the concerned market. On the
basis of these factors companies predict the demand and supply of the services which will be
required.
TASK 4
Evaluate the advantages and disadvantages of using franchise method.
Advantages
 This method helps H&M to reduce the probability of failure as the company has
already established themselves in different markets which develops trust in the minds
of people which helps in gathering more share in the market (De Mooij, 2018).

 H&M has already a share in market which will help them to avoid the factor of market
testing of their products (De Mooij, 2019).
 Name of the brand is trusted by the people and recognizable which will help leave
more impact on the target audience if they use proper strategy of advertising and other
promotional strategies in effective manner (Grigorescu and Zaif, 2017).
Disadvantages
 This method is expensive which makes many investors go away from the idea. The
reason behind this is that initial cost required to undertake this method is too high
which is not affordable by everyone in the market.
 This method includes a lot of restrictions which limits the thinking and working pattern
of the franchisee to run the business on their own.
 If the franchiser goes out then it will affect the franchisee as it will be a huge loss for
him (Homburg, Jozić and Kuehnl, 2017).
Benefits to choosing franchise for your fashion retailer
 If the franchisee does not have any kind of prior experience of how to run the business
then it will be beneficial for him as all of the strategies and patterns will be provided to
them by the franchiser they would just have to invest the money.
 With this method people get loans easily to start up their business as banks and other
money lenders trust the company.
 Franchiser provides the details of suppliers which simplifies the work of franchisee as
they don't have to make relationship with their suppliers (Alon and et.al., 2016).
CONCLUSION
From the above studies it has been concluded that companies such as Brightstar Financial who
are operating on a small scale will need to collaborate with one of their competitors so that
they can enter into different market. Also networking is an important aspect as it helps the
company to know the details about the country they are going to enter in.

REFERENCES
Books and journals
Alon, I., and et.al., 2016. Global marketing: Contemporary theory, practice, and cases.
Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Grigorescu, A. and Zaif, A., 2017. The concept of glocalization and its incorporation in global
brands’ marketing strategies. International Journal of Business and Management
Invention, 6(1), pp.70-74.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.

Keegan, W.J., 2017. Global marketing management. Pearson India.
Kim, S.H., Hulland, J. and Eom, H.J., 2018, July. USE OF ITEM RESPONSE THEORY IN
MARKETING RESEARCH. In 2018 Global Marketing Conference at Tokyo (pp.
1503-1503).
Kotabe, M. and Helsen, K., 2020. Global marketing management. Wiley.
Leonidou, L.C., and et.al., 2018. Advances in Global Marketing. Springer.
Magalhães, M., and et.al., 2020. Canvas marketing plan: How to structure a marketing plan
with interactive value?. In Handbook of Research on Emerging Technologies for
Effective Project Management (pp. 158-168). IGI Global.
Quelch, J.A., 2017. Global marketing management: a casebook.
Schultz, D.E., 2017. International marketing communication as the global marketing change
agent. Strategic International Marketing: An Advanced Perspective, p.117.