Global Marketing: Introduction, PESTEL Analysis, Segmentation and Targeting, Market Entry Strategies, Marketing Mix

This report provides an overview of global marketing and its importance in meeting international objectives. It focuses on the case of Marks and Spencer's expansion into the Latvian market, discussing PESTEL analysis, segmentation and targeting, market entry strategies, and the marketing mix. The report highlights the significance of understanding the external environment and implementing effective strategies for successful global marketing.

Global Marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION ......................................................................................................................2
MAIN BODY...................................................................................................................................2
Organisational overview..............................................................................................................2
PESTEL Analysis........................................................................................................................2
Segmentation and Targetting.......................................................................................................5
Market entry strategies ................................................................................................................6
Marketing mix..............................................................................................................................6
SWOT analysis............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
The report summarised that global marketing is all about marketing business services and
commodities at worldwide level for meeting all the international objectives. Marks and Spencer
is selected business for this report. The company is planning to introduce its current household
products in new international market that is Latvia and for this, PESTLE analysis is conducted to
monitor and examine the impacts that components of the external environment will have on the
institution and its strategic decisions. Moreover, it discussed about segmentation and targetting,
market entry strategies, SWOT analysis of the company. The main emphasis in this report is
given to marketing mix of the household product that the entity will introduce in new market.
Elements of marketing mix covers about product, promotion, price, process, physical evidence,
place and people.
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INTRODUCTION
Global marketing is defined to the concept that conceptualise and conveys final
commodity worldwide so to reach international marketing community. Moreover, it is said to
procedure to adjust organisational marketing strategies or frameworks for adapting conditions or
situations of other nations. It involves marketing existing products or services on worldwide
scale for reconciling commercial advantages of international operational similarities addition to
opportunities for meeting international goals (Baena, 2019.). It is full procedure including
planning, manufacturing, position together with promoting organisational products at global
aspect. The report is based on Marks and Spencer that is famous multinational retailer specialise
in selling home products, quality clothing and food commodities. Its headquarters are at London,
UK. In present era, the entity has huge number of stores in UK. The company is planning to
expand the business through introducing its existing consumer good that is household product in
new overseas market which is Latvia. The report includes organisational SWOT analysis,
PESTLE analysis and marketing mix of existing consumer good.
MAIN BODY
Organisational overview
Marks and Spencer is famous company in retail industry of UK. It was formed by
Michael Marks together with Thomas Spencer in 1884 at London, United Kingdom. It is
specialise in staff welfare services, food commodities, high quality clothings and home products.
It operates various nations including Canada, Philipiness, Europe, Asia and many more. The
organisation is planning for market development and for this, it is launching its existing product
that is kitchen product in new oversees market which is Latvia. In chosen oversees market, living
standards are high and at same time, little competition among retailing entities as well as the
entity do not operate in such market. Therefore, to grab huge opportunities for expanding market
shares and revenue efficiency, Latvia market is chosen to introduce current household product by
Marks and Spencer.
PESTEL Analysis
PESTEL analysis is a framework that is majorly used for tracking and monitoring macro
environment and its factors that impacts performance and operations of enterprise (Bhatia,
2019.). Political, economical, technological, environmental, social and legal are some
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components of global environment that impacts strategic decisions make by entities as well as
international businesses. It is very important for a company to examine all the macro factors
related to the country in which they will operate in upcoming years. With the framework,
managers of Marks and Spencer have evaluated all the components and their impacts on its
strategic decisions for introducing existing product in new oversees market. All the components
are as evaluated:
Political factor: Activities or actions which are associated with governmental policies
are said to political factors. Corruption level, freedom of press, competition regulation,
government involvement, tariffs, political stability and trade control are components of political
factors. In international market, all these factors impacts businesses and their workings because
of changes within political stability of a nation, labour laws, trade and so on. The political
environment of Latvia based on democratic republic structure that abides workings through rule
of law (Political structure of Latvia. 2020). Along with this, it is integrated with major political
structures that protects investors and provide opportunities to new businesses from other nations.
When Marks and Spencer will invest to introduce its household product in such environment
then it gain various benefits to operate in the nation in positive manner. Favourable political
conditions will impact on chosen firm strategic decision positively as government of Latvia
provides various incentives and through these, it can make its position and good image in
selected oversees market resulting in positive impacts on decisions of entity. However, uncertain
modifications that are made by political parties in internal market may impact negatively on
decision made by entity for expansion as it becomes huge cumbersome for company to change
their strategies in limited duration.
Economic factor: It deals with national along with international economic developments
which influences consumer market. Economic factors that plays essential role in international
market are unemployment trends, business cycle stages, consumer disposable income level, stock
market trends, trade patterns, labour cost and so on. Latvia's economy is generally an open
economy and has implemented all the market oriented reforms. Moreover, the economy of such
oversees market performs well because of steady growth within consumption of domestic
population that will impacts in positive manner on the strategic decision of Marks and Spencer to
introduce its product and gain growth aspects. However, Latvia market has made some threats
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for new entities including price control policy and many more that can impact negatively on
selected firm's decision to set business.
Social factor: Components which emerges from environment, community, religion,
culture, belief and other aspects that influences entities to think as well as perform in certain
manner are social factors (Galli, 2020). For example, education level, buying habits, population
growth rate, social classes,safety emphasis, population attitudes and heath consciousness are
social factors which an organisation will consider while planning to go in international market.
At international market, populations have attitudes for imported goods, product quality, savings
and supporting renewable energy. People in Latvia market have huge preferences for quality
household product that will influences sales of household product and profit margin of Marks
and Spencer positively. At same time, the literacy rate is also high in this oversees market which
will assist the institution with good manpower as well as better consumers to sell the product and
gain positive influences on decisions.
Technological factor: Variables which are adopted for evaluating available options in
context to technological capabilities are defined as technological factors. Communication
infrastructure, automation, technological changing rate and newest technological assessment are
key technological factors. In international market, changes in technology occurrences every
minute that can influence businesses strategic decisions positively or negatively. In Latvia, the
country has set up Latvian Technological Center which assists businesses with required
technological support so to encourage usage of newest technologies in business. In the chosen
international market, by using advance technologies to set the business and initiating activities
with them can influence positively on Marks and Spencer way to working and strategies to
sustain in the new market.
Environmental factor: Components that influences business workings because of
environmental impacts such as global warming, harmful gases emission and so on (Griffith and
Lee, 2016). Moreover, it involves all elements concerned with physical environment addition to
general requirements for environmental protection. In international market context,
environmental factors are global climate change,climate, environmental offsets and so on. In
Latvia market, major consideration is given on protection of all the concerns of environment or
ecological aspects. So, when Marks and Spencer will contribute on CSR and initiate programmes
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for ecological protections them it will impacts positively on strategies to create brand awareness
addition to organisational goodwill in such oversees market.
Legal factor: The factors which determines ways for operation of business and behaviour
of customers are legal factors. It is also seen that changes in legislations occurs time to time in
international market that influences implementation of organisational strategic decision to great
extent (Izberk-Bilgin and Nakata, 2016). Legal factors have close interrelation with political
factors as political system of particular country makes changes in its legal environment. In Latvia
market, some of legislative acts governed by government includes consumer protection laws,
discrimination act, employment laws and so on. When managers of Marks and Spencer will
promote its product and operate in the market by following all the acts governed acts and laws
then will achieve success that will show positive impacts on its decisions. However, failure or
non-fufilment of the governed regulations will impact negatively as the organisation have to face
various severe consequences that might influence implementation of strategic decisions
negatively.
Segmentation and Targetting
Segmentation and targeting are main strategic approaches that companies uses to segment
the market in different groups and then targetting the efficient groups (Leonidou and et.al.,
2018). In segmentation, entire market is segregated in diverse groups that have similar
characteristics and are easily accessible. In context to Marks and Spencer, the managers are
planning for introduction of existing household product in oversees market that is Latvia. For
this, they have segmented the chosen oversees market into different groups that are as discussed:
Demographic segmentation: In this segmentation type, customer groups are
differentiated as per demographic variables such as gender, occupation, family life cycle, status
and education. With this, Marks and Spencer can categorise consumer needs more accurately.
Behavioural segmentation: Herein, customer groups are differentiated on the basis of
their response, knowledge, usage rate, loyalty status and attitude for product. It is believed by
many organisational marketers that behavioural variables acts as important aspects to initiating
in building market segments.
Geographical segmentation: In this segmentation, population are segmented as per
geographic criteria including regions, neighbourhoods and postal codes. Within it, regional
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differences are based on topography, climate and its density that are primarily considered in
market segmentation.
Targetting
Marks and Spencer is planning to introduce its current household product in new market
at international level. For this, they will target population of Latvia which are between age of 22
years to 45 years which have huge usage rate and strong attitude towards household product.
Moreover, it also target people that have high education level and resides in nearby area where
they will open new store.
Market entry strategies
Market entry strategy is said to planned distribution as well as delivery method to new
target market (Martin, Javalgi and Cavusgil, 2017). Marks and Spencer have variety of ways to
enter in new market are deliver the existing good. Some of market entry strategies are as
described:
Licensing: It is mentioned as the procedure to give other firms the rights to sell
organisational products. In this, an agreement is created with a company that will produce and
sell the respective firm product in the selected oversees market.
Exporting: It is defined as directly selling organisational product in the chosen market
through organisational own resources. Exporting is good market entry strategy as it assists
businesses to quickly enter in new oversees market.
From the above discussed market entry strategies, Marks and Spencer can opt exporting
strategy so to introduce current household product directly to the population of Latvia market.
The chosen strategy will assist in gaining information about market preferences and needs,
having control on prices, attracting export returns and making good reputation in selected
oversees market.
Marketing mix
Marketing mix is said to set of actions which are adopted by an enterprise for promoting
the product in market (Mathews and et.al., 2016). It involves elements such as product, physical
evidence, promotion, people, price, place and process. In case with Marks and Spencer, it aims
for expansion in Market of Latvia with household product through enhancing business
opportunities positively.
Product:
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Product is defined as good or service which company offers to consumers after
emphasising on their demands, choices and interest. The main product of Marks and Spencer
which is introduced in new market of Latvia is household product. As population of Latvia are
demanding more for the quality household product chosen company made a choice to enter in
the respective market and introduce it for satisfying the consumers.
Price:
Price is mentioned as total value which customers are ready to pay so to garb the
commodity from market (Ramadani and Gërguri-Rashiti, 2017). It is very essential element
within marketing mix. It is determined by adding cost as well as expected profit of a company.
Product prices are based on consumer affordability and keeping this in mind, entities set suitable
prices. For introducing household product in Latvia, penetrating pricing strategy will be more
effective as this will assist Marks and Spencer to keep prices low in initial aspects and later
gradual increasing them after achieving satisfactory results within market. The pricing strategy
will help chosen company to gain higher growth as well as making leading position within new
overseas market.
Place:
Place is describes as point of sale. Organisation uses various distribution or placement
mechanisms to offer the product to end targetted consumers. Marks and Spencer has established
distribution channels so that wholesale suppliers are given materials which are majorly used in
procedures of production. Its stores are also very attractive as well as enchant customer base
positive through spreading proper knowledge addition to information in context to products and
services in order to remaining in leading position in marketplace. Latvia is one of developing
nation and the plan made by Marks and Spencer to introduce household product is one of great
idea. The company will provide its existing consumer product in the area of Riga which capital
of Latvia and have huge population. This specific place is more favourable to open
organisational store as demand for household product will be generally more.
Promotion:
Promotion is mentioned to marketing communication which is opted to persuade towards
targetted audience of product Schlegelmilch, 2016). It helps in creating brand loyalty, increasing
awareness, generating sales addition to creating interest among targetted people for the particular
product. It generally includes advertising, sales promotion and other promotional strategies to
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market the commodities for sustaining in competing market. With reference to Marks and
Spencer, introducing new product in new market requires promotion for gathering attention of
audiences towards the company addition to its offerings. Word of mouth, Social media
marketing, advertising and print media are some promotional strategies that will be used by
Marks and Spencer to market its chosen consumer product among targetted population.
Moreover, by using television, internet addition to radio, selected firm aims to target specific
customer-base positively to build brand name as well as making innovative and attractive
business promotion setup in new oversees market. At same time, respective firm also aims to
expand market of Latvia in Europe and for this, they are planning to adopt sales promotion for
drawing customers attention and enlarging business opportunities positively.
People:
People are the human resources that are hired by entity for making contacts with targetted
audiences to deliver the commodity (Ratten, 2017). In context to Marks and Spencer,it has wide
size of employees and it pays emphasis on all its people and their needs. As the entity will
introduce household product in Latvia market, for this, it will focus on hiring some residents of
same place and will transfer some of its human resources from its main headquarters to chosen
market. Moreover, it will provide various training programmes, fringe benefits and flexible
working hours to people working to introduce the product for achieving success in chosen
oversees market.
Process:
Process is said to the process as well as system that delivers organisational commodities
to end consumers (Schlegelmilch, 2016). With association to Marks and Spencer, it will deliver
its existing household commodity to population of Latvia through opening convenience stores in
market of Riga. Moreover, the entity will divide the stores in different floors wherein they will
have separate sections to deliver household product. From first floor, customers will choose their
stuff and will further proceed to checkout counter at second floor at which they have to pay bills.
Along with this, customers can also purchase their preferred household product through making
online purchase from M&S website.
Physical evidence:
Physical evidence is described as elements within physical environment that are
experienced by customers. Moreover, the element pertains the ways in which business along
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with its commodities are perceived within market (Steenkamp, 2017). Marks and Spencer will
introduce household product at its stores in Latvia market. Its existing product will include all the
detailed information about how to use, its MRP, expiry date and many more which will act as
physical evidence. Furthermore, the entity also have official website from where customers of
selected oversees market will purchase household product as well as will enjoy home delivery.
Thus, it can be states that marketing mix is significant tool for evaluating essential
aspects while making decision related to introducing existing product in new market in order to
gain desirable objectives in proper ways.
SWOT analysis
SWOT analysis is important strategic planning technique for identifying strengths,
weaknesses, opportunities and threats of a person, product or company. Marks and Spencer is
established retailer whose SWOT analysis is as follows:
Strengths Weaknesses
 It has a wide recognition in the
internationals market due to selling
huge products in the market.
 It also has a large number of stores
where various popular design brands
are available (Wu, 2016).
 Marks and Spencer has multichannel
presence i.e. Online addition to Brick
and Mortar Stores.
 Innovation in products is also its
strength due to which it maintains its
presence in a dynamic market.
 Bad publicity being done as a non
trendy store which was quite slow to
catch up to new trends among the
customers.
 Manual way of working resulted in
increase in costs showings lowering of
profits.
 Lack of penetration in international
markets also creates problems because
in this era of globalisation global
presence is a must (Baena, 2019.).
Opportunities Threats
 Internet offers Marks and Spencer an
opportunity to expand their presence
online to users all over the world.
 Rapid change in the tastes of customers
poses a threat to Marks and Spencer as
it needs to be constantly creative and
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 It can also try to make their website
look creative to attract new customers
towards them. They can use ideas
which makes their website look
attractive (Ramadaniand Gërguri-
Rashiti, 2017).
innovative.
 Easy availability of cheaper substitute
products results in low sales of branded
products which poses a threat to the
business model of Marks and Spencer.
CONCLUSION
The abort report concludes that global marketing is a concept to market organisational
commodities in worldwide scale with the objective to enjoy commercial benefits related to
international operational opportunities, distinguishes along with similarities to fulfil global
objectives. Organisation that plan to enter in new oversees market with current product generally
monitors external factors through PESTLE analysis and internal factors with SWOT analysis to
analyse impacts that they can have on workings and strategic decisions. Market entry strategies
that a form can opt to enter in new market are exporting, licensing and many more. Moreover,
marketing mix determines abilities of of existing product that assist company to target particular
base of consumers.
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