Global Marketing: Concept, Country Selection, Entry Mode, and Franchising

This report explores the concept of global marketing and its importance in the current globalized business world. It discusses the selection of a country for global marketing, including the political and economic environment of China. The report also examines the factors that affect the decision of entering a foreign market and the advantages and disadvantages of using franchising as a market entry mode. The case study of Charlotte Tilbury Beauty Ltd. is used to illustrate the benefits of franchising.

GLOBAL MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Concept of global marketing concept.....................................................................................3
Development of global marketing concept.............................................................................3
Example..................................................................................................................................4
TASK 2............................................................................................................................................4
Background of chosen country...............................................................................................4
Political risk of chosen country..............................................................................................4
Trade, tariff and non- trade barriers among UK and china....................................................4
Economic environment of chosen country.............................................................................5
Advantages and disadvantages for UK to move in new country............................................5
TASK 3............................................................................................................................................5
Background of the company...................................................................................................5
Factors affecting the foreign market entry mode decision model help company in choosing
right entry mode.....................................................................................................................6
TASK 4............................................................................................................................................6
Name of the company.............................................................................................................6
List of market in which the retailer wants to enter.................................................................6
Advantages and disadvantages of using franchise as entry mode..........................................7
Benefits of using franchising to the company........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global marketing is defined as the process of promoting the products and services of the
company at the international level. The global marketing has gained popularity because of the
increase in globalization (De Mooij, 2018). This is because of the reason that due to
globalization the international trading has increased and due to this the necessity to promote the
goods and services at the international level has also increased.
The present report will focus on concept of global marketing. Further it will discuss a
country in which the company can move in to go for global marketing. Next the assignment will
discuss about the factors affecting the foreign entry mode. In the end the report will highlight the
fashion retailer which uses franchising as a market entry mode.
MAIN BODY
TASK 1
Concept of global marketing concept
The global marketing is a strategy which is used by the company to market its product
and services in the international market. This includes the whole process of identifying the
product, deciding its price placing the product in the international market as well as promoting
the same in the international market. This is very necessary to market the products in the
globalized market because the competition is very tough and to face it the marketing needs to be
attractive and effective.
Development of global marketing concept
The development of the concept of global marketing was very necessary because of the
increase of business in the field of globalization. Globalization is defined as the doing business
irrespective of the geographical boundaries of the country. In this system any country can trade
with any other country all over the globe without any restrictions or any difficulty. Thus, if the
company wants to do trade at international level then it is necessary for the company to also
make the international consumer to know about the products and services of the company. For
this the company has to use the concept of global marketing (Quelch, 2017). This is done so that
all the consumers at the global level knows about the goods and services of the company.

Example
The example of company which has used global marketing is the company of Tesco. It is
a company which has its operation in many of the countries all over the world (Steenkamp,
2017). Therefore, for maintaining the sales of the products and services of the company they
have to time to time promote the goods and services in the international market and for this they
use the concept of global marketing.
TASK 2
Background of chosen country
The chosen country from the BRIC countries is China. This is a country situated in East
Asia and is the world’s most populous country. Also, this is the country which is either the third
or the fourth largest country in the terms of total area.
Political risk of chosen country
The political system of China is based on the concept of hereditary monarchies or
dynasties which starts from the semi- legendary Xia dynasty in around 21st century. After that the
country has expanded and re- unified many times. The constitution of China articulates that the
country is a socialist state which is under the dictatorship which is led by the working class and
is based on the alliance of peasants and workers. The political risk is defined as the interference
of the government in the affairs of the business and the foreign involvement in the business. The
political risk in China is the war between the central government of country and the provisional
and local government of the country.
Trade, tariff and non- trade barriers among UK and china
When two different countries trade with each other then there are many different types of
barriers which the company faces. These barriers can be categorised in three ways that is barriers
relating to trade or relating to tariff and non- tariff. The different types of barriers faced by UK at
time of trading with China are discussed in the adjoining points below-
The most common trade barrier is the rules and regulations of the government of the
country (Sun, Paswan and Tieslau, 2016). Every country has its own set of rules and regulations
and the other country which is coming to do trade with the country needs to follow their rules
which is a barrier for the other country.

Another barrier is the price. This is a barrier because of the reason that the prices of the
products are also different in different countries. Like for instance the price of some article may
be low in UK but it may be high in China than this is a barrier (George and Cherian, 2017).
Economic environment of chosen country
The economy of China has witnessed a rapid growth since few of the last decades. After
the introduction of the economic reforms in the year 1978 the country has become a hub for
manufacturing companies and the secondary sector has contributed the largest share in the GDP.
The country is currently going a structural slowdown and because of this the growth is expected
to be moderate for a period of time.
Advantages and disadvantages for UK to move in new country
Advantages
 The major advantage for UK to enter into the market of China is that this is the largest
populated country and because of this the consumer base is very high.
 Another advantage is that in this country there is growing number of middle income
consumer which is beneficial for UK as it deals in goods and services for the middle-
income group.
Disadvantages
 The major disadvantage is that the there is a high competition from the state- owned
enterprises. As there are also some local players doing business in the domestic market of
China.
 One more disadvantage is the anti- monopoly legislation which the country uses in
against the foreign firms. This is to stop the foreign firms to make monopoly in the other
country.
TASK 3
Background of the company
Charlotte Tilbury is a famous British make- up artist who was born on February 10, 1973
who is the founder of Charlotte Tilbury Beauty Ltd. In the year 2012 Tilbury established its own
beauty and skin care brand at Selfridges in London (Martin Rosenbaum and Ham, 2015). Further
this has biggest retailer in the fashion and beauty industry. Now the company is having many
branches all over the world and is also available in 76 countries in way of online presence. Also,

she has launched her YouTube channel and also blog to provide videos relating to makeup
tutorials and tips relating to make- up essentials.
Factors affecting the foreign market entry mode decision model help company in choosing
right entry mode
For entering into the foreign market there are many different factors which affects the
company (Knight and Liesch, 2016). Therefore, there are many factors which impacts the way of
entering into the foreign market and choosing the correct and suitable way of taking the decision.
These factors are of two different types that is internal and external factors. The internal factors
are the ones which are directly linked with the company and the external are the factors which
impacts the decision form outside the country. These factors are as follows-
The first factor is the market size that is what is the size of the country in which the
company is intending to expand. This is a major factor which affect the fact that which method to
select for entering in to the new market. If the market is big than it is evident that the investment
to be done by the company is also high.
Another factor is availability of the resources. This is also a major factor which impacts
the decision of selecting the mode of entry in foreign market. This is because of the reason that if
the resources are not available in the country where the entry is intended then the company has to
think before entering into that country. Also, if the resources are high in prices as compared to
domestic country then it is useless to enter into that foreign market.
TASK 4
Name of the company
The fashion retailer is the Charlotte Tilbury Beauty Ltd founded and managed by
Charlotte Tilbury. This company is the biggest beauty retailer in the world. This company has
many branches all over the world and this has been opened with the help of method of franchise.
List of market in which the retailer wants to enter
This company has the first opening at Selfridges in London. But this has expanded its
branches in many different countries by way of providing franchising to other interested
companies (Lages, Fonseca and Paulino, 2018). The company has its outlets at different
countries such as UK, Canada, Netherlands, Spain, Ireland, Dubai, Qatar, Kuwait, US, Hong
Kong, Germany and France. But the company is still planning to open more new branches and

all with the mode of franchising. In current the Charlotte Tilbury is planning to open one more
franchise in China. This is majorly because of the reason that this is the most highly populated
country in the world. Therefore, this country provides for a large market and consumer base for
promoting the products and services of Charlotte Tilbury (Charter and Polonsky, 2017).
Advantages and disadvantages of using franchise as entry mode
Franchising is a common method of market entry mode wherein an agreement is made
within which the franchisor provides its licenses and all the rights to do business to some other
person know as franchisee. The advantages and disadvantages of this method as a market entry
mode are discussed in the adjoining points connected below-
Advantages
 The major advantage of franchising is that this method of entry helps the company to
have a pre- established market and therefore, there is no need of testing the products in
the market that whether it will be successful or not.
 Also, another benefit is that the company which is giving the right to the other company
in another country is that the franchisor gets the local resources from the franchisee by
just providing the rights and authorities to the franchisee.
Disadvantages
 The major disadvantage is that the cost of this is very high for the franchisee as they have
to pay a lot of management and services fees to the franchisor.
 Another drawback is that the franchisor needs to overlook the working of the franchisee
as they can add bad reputation to the company. This is majorly due to the fact that the
franchisee does not like the too much involvement of the franchisor in the working of the
company. This is because of the reason that the franchisee pays the fees to the franchisor
then they do not like the interference of the franchisor in the business (Advantages and
disadvantages of franchising, 2018).
Benefits of using franchising to the company
The benefits for Charlotte Tilbury for using the method of franchising are discussed in the
following points below-
 The franchisor that is Charlotte Tilbury gets the royalty and other payments by the
franchisee to use the brand name in that particular country.

 Another benefit to the company is that by just providing the rights to operate to the
franchisee is that the company that is Charlotte Tilbury gets a pre- established market to
expand its business in new country (Schlegelmilch, 2016). This also increases the
consumers for the company as the franchisee operates in the name of Charlotte Tilbury
Beauty Ltd.
CONCLUSION
From the above study it was analysed and concluded that to do business in this highly
competitive and globalized business world it is very necessary to do global marketing. This is
necessary because the trade is done at the global level thus; the marketing will also be done at the
global level. The present report highlighted the meaning of the global marketing.
Also, in the further part a country was chosen that is China and then the political and
economic environment of that country was studied along with the different trade and tariff and
non- tariff barriers faced by UK was discussed like different prices, rules and regulations. Further
the different factors which affects the decision of entering into the new foreign market was
discussed like market size, availability of resources and many other. In the end the advantages
and disadvantages of franchising was discussed.

REFERENCES
Books and Journals
Charter, M. and Polonsky, M.J., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
George, M. and Cherian, E., 2017. The Emergent Global Marketing Challenges For Kerala
Cardamom Producers Vis-à-Vis The Role Of The Spices Board Of India. International
Journal of Community Development & Management Studies. 1. pp.39-62.
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born
global. Journal of World Business. 51(1). pp.93-102.
Lages, L.F., Fonseca, V. and Paulino, M., 2018. The VCW-value creation wheel: a framework
for market selection and global growth. In Advances in global marketing (pp. 253-279).
Springer, Cham.
Martin, D., Rosenbaum, M. and Ham, S., 2015. Marketing tourism and hospitality products
worldwide: Introduction to the special issue.
Quelch, J.A., 2017. Global marketing management: a casebook.
Schlegelmilch, B.B., 2016. Marketing: A Global Discipline. In Global Marketing Strategy (pp.
1-19). Springer, Cham.
Steenkamp, J.B., 2017. Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Sun, Q., Paswan, A.K. and Tieslau, M., 2016. Country resources, country image, and exports:
Country branding and international marketing implications. Journal of Global
Marketing. 29(4). pp.233-246.
Online
Advantages and disadvantages of franchising. 2018. [Online]. Available through: <
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-franchising>