Global Marketing: Expanding Business in International Markets

This report discusses global marketing and the strategies used by M&S, a British multinational retailer, to expand its operations in international markets. It covers the motives for internationalization, evaluation of selected markets (Turkey and Russia), methods of market entry (franchising), and potential marketing strategies (communication mix).

Global Marketing

Executive Summary
This report is based on the global marketing, which means expansion of business in global
market and undertaking activities which can help organisation to survive and develop in
international market. There are various reason which influence businesses to expand into
international markets and some of the reasons are increase in profit and sells. Later
communication mix for marketing of the firm has also been discussed in the report.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Background..................................................................................................................................3
Potential motives for Internationalization...................................................................................3
Evaluation of the selected market................................................................................................5
Analysis of methods of market entry...........................................................................................6
Potential marketing strategy........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global marketing means organisations marketing efforts which are carried out in the
countries other than home country. The global marketing extends the limitation of selling the
goods and services of the company in other countries or at global level. Global marketing is
complete process of planning, creating, positioning and promoting the goods and service of the
company at global market. There are various reasons because of which companies choose to
market globally some common reasons are increased scope, profitability and sustainability of the
business. This study will discuss global marketing and marketing operations of M&S, British
multinational retailer.
MAIN BODY
Background
Marks and Spencer is a major British multinational retailer. Company was founded in
1884 by Michael Marks and Thomas Spencer and headquartered at London, UK. Area served by
the M&S is worldwide and is located at 1463 places. Number of employees which are hired by
the company are around 80000. One of the subsidiary of the M&S is M&S bank which is
presently owned by HSBC. M&S operates in retail industry and this is why deals in various
products and among all of them company specialize in clothing, home products and food
products (Wilson, 2016). Though Marks and Spencer is multinational company but its major
operations are carried out in UK and 956 stores of M&S are in UK only and among these 615
stores only sell food products. M&S deals in its own products also other than branded products.
M&S operates in 29 countries. In context of international marketing of the M&S it adopts several
strategies like joint venture and merger and at some of the places M&S operates directly which
means M&S directly control the operations of the M&S stores in other country. in relation with
products of the M&S in its international markets its products are like retail products but presently
its food products has increased their sell than its clothes.

Potential motives for Internationalization
There are several motives which encourage and influence company to move into
international markets (Katsikeas, Leonidou and Zeriti, 2019). Some of the motives also
influences M&S to internationalize its operations.
The internationalization motives for companies are divided into categories which are market
seeking, efficiency seeking, resource seeking and strategic resource seeking.
Market Seeking
This is the most common motive because of which organisations internationalize their
operations. In this motive of the internationalization M&S expand their operations because of
sales potential offered by international market. This is also used when home market of the
company does not offer any growth and increase of the sales. This offers opportunities for
increased sales and this also increase profitability of the firm. In this countries which offers great
potential for sale and profit for the company (Sinkovics, Jean and Kim, 2016). Because of this
motive selection criteria of the country includes market size, market growth, attractive segments
of the customers, demand for product and service of the company.
Resource Seeking
This motive for internationalization includes selection of those countries in international
market which has great availability of the natural products. These natural resources attract and
become motive because of which organisations expand into other country market. Availability of
natural resources makes it viable for company to use natural resources for the production.
Natural resources are important for M&S and this is why it becomes motive for M&S to
internationalize its operations.
Efficiency Seeking
Efficiency seeking means that companies increase and expand their operations in
international market. Efficiency seeking means company wants to improve their operations and
increase efficiency of the products and service. This means improving quality of the offerings.
This is because to survive and grow in international market it is important that company
maintains high quality of their operations and products (Gnizy and Shoham, 2018). Efficiency

seeking also involves that company expand its operations in other countries so that it can enable
company to compete in international market.
Capability Seeking
This involves motive of the company in which M&S gets motivated because of human
resources and other strategic resources which can add value to the company. Strategic assets and
capabilities are technical expertise of the company, distribution networks etc. Such capabilities
enable company to compete in international market and resources and capabilities acquired from
one country can be utilized to operate in another country and at wide international market.
These are some of the reasons which motivate and trigger companies to internationalize
their functions because of their varied benefits.
Evaluation of the selected market
M&S is an international company and this is why operates in many countries. The
countries which have been selected for evaluation are Turkey and Russia (Ibeh, Crick and
Etemad, 2019). M&S successfully functions in both these countries.
Reasons for Selection
These markets were selected by the because in relation with Turkey, its location which is
in the middle of Asia and Europe and this is a strategic location that while remaining in Europe
company can extend its operations into Asia region. Some of other reasons because of which
M&S selected Turkey as its market is that well-trained workforce is available at the Turkey and
Turkey also provides friendly environment for business.
On the other hand reasons to select Russian are its increasing middle class populations,
investments prospects in Russia are looking and new programs has been initiated to encourage
foreign investments (Papadopoulou, 2019). Strong logistics and supply chain is another reason
for selecting Russia for international market.
Place
Place means place where customers and business interact with each other. In relation with
places in Russia in M&S operates at stores and on online platforms. The stores in Russia are

located at 13 places. On the other hand M&S has its stores at 10 locations. The reason behind
this is that Russia is geographically bigger than Turkey and potential market for M&S is also
higher than Turkey market potential.
In relation with marketing strategy adopted by M&S for expansion in Turkey M&S has adopted
Franchising. The same method has been adopted for the international marketing in Russia.
Analysis of methods of market entry
International marketing consist of a very important decision which is what country to
enter. Once this decision has been taken by the M&S the nest important decision that M&S takes
is that which method of marketing should M&S adopt to internationalize its market and
operations (Watson and et.al., 2018). M&S can select any of the method as there are several
options available for this. Some of the options available for the internationalization are merger
and acquisition, company buy in, buy out, strategies alliance, licensing and franchising. All these
are options available for the internationalization of the company.
Among all of these retail organisations generally adopt and select licensing and
franchising method for international marketing. This is the reason that M&S has also selected
Franchising strategy. Franchising strategy is a type of license that a party acquires which allow
them to use proprietary knowledge, processes and trademark which allow a party to sell products
and service under the name of company. M&S also selected this strategy for its international
marketing in Russia. In this M&S gives its franchise to a party of Russia and the party gets
license to operate under the name of M&S and sell its goods and services. Some of reasons
which influence M&S to internationalize through Franchise are;
Capital Requirements- This has less capital requirement as the party which has acquired the
license to operate under the trademark and name of the M&S (Verbeke and et.al., 2019). this
requires less capital investment from the side of M&S as investments are made by franchisee.
This is one of the significant benefit and reason that M&S selected Franchise for international
marketing.
Easy access to international market- Franchising method of international marketing is a easy
option to access to international markets and this is why M&S selected this method. M&S easily
became able to open its franchise in Russia through franchising otherwise there are various

factors and regulations which a company need to follow in order to start its own store in other
country. The huge capital investment, recruiting and deploying employees and management and
later concerns related to success and market survival and growth.
Higher possibilities of Success- Possibilities of success are higher and this is also a reason that
M&S selected this option for international marketing (Christian, Zhang and Salifou, 2016).
Possibilities for success are higher because franchisee often buy and acquire license for franchise
when they identify the potential market for a particular brand and service and franchisee are
more aware with local demand in their country. Franchisee when buy the license it communicate
the higher possibilities of success in Russia market.
These are some of the reasons which suggest that Franchising was the best option that is
suitable for M&S for its international marketing. Though some of the factors which require
special consideration such as effect of image of the M&S on the operations of Franchise of M&S
on the other hand effect of Franchise and its operations also affect image of M&S.
Potential marketing strategy
Potential marketing strategy refers to marketing strategy which contributes in ensuring
success of the international marketing. Communication Mix is a strategy that can help M&S tto
achieve its objectives and help in its effective marketing.
Communication strategy means marketing communication plan which includes multiple forms of
communication channels into the communication mix (Bacik and et.al., 2018). This is done too
ensure that through various forms of communication company is able to communicate its
message to its end consumers. Communication mix also ensures repetition of the message so that
customers and consumers can recall the brand.
Communication Mix for M&S is as follows-
Advertising
Advertising is the most common form of communicating which M&S can adopt and
M&S adopts. Advertising includes various forms but advertising commonly includes television,
radio and print form of advertisement. This is a strong used communication strategy which is

used by big brands and those brands who face strong competition in the market. This is why this
form of communication strategy is appropriate to be used by the M&S.
Personal Selling
Personal selling is another form of communication in the communication mix. Personal
selling is sometimes integrated with the direct marketing element. In this communication
strategy company personally sells goods and services to the customers (Kim and Lee, 2020).
This requires effective sales and marketing people who can influence customers to buy the goods
and products which are being used by offered by the M&S. This strategy is commonly used by
the retail organisations.
Sales Promotion
Sales promotion is another most used communication strategy which is used by the retail
sector organisations. In this various type of trade discounts and freebies are offered by the
companies. Sales promotion also includes that consumers are provided with incentives for the
purchase of the products. This also involves that dealers and distributors are provided with
incentives to increase the sale of the products. Because on moving of products this strategy
involves low expense in sales promotion and investment is also less in this strategy.
Public Relation
This strategy in the communication mix in which art of spreading the news about the
products in the public domain is used so that company can create hype and people talk to each
other about the products and the brand.
Direct Marketing/Internet Marketing
This is digital marketing strategy in communication mix which is being increasingly used
by all type of the companies and M&S also use this strategy (Bacik and et.al., 2018). This
strategy involves communication to the customers and consumers through various digital
mediums and social media platforms.
Packaging

This is a part of marketing mix but packaging involves all the information about the
product and the brand offering the products and this is why it becomes the important medium of
communicating to customers.
CONCLUSION
On the basis of above analysis it can be concluded that international marketing includes
various functions which are taken by the organisation. This is done so that they can take
advantage which are provided to them by the international markets and there are various motives
which influence and attract companies to market internationally these are increased profitability
and resources which can be provided to them by the international market. Later communication
mix for M&S in international markets has also been discussed in the report.

REFERENCES
Books and Journals
Bacik, R and et.al., 2018. Factors of communication mix on social media and their role in
forming customer experience and brand image. Management & Marketing. Challenges
for the Knowledge Society. 13(3). pp.1108-1118.
Christian, A.V., Zhang, Y. and Salifou, C., 2016. Application of PROMETHEE-GAIA Method
in the Entry Mode Selection Process in International Market Expansion. Open Journal
of Business and Management. 4(2). pp.238-250.
Gnizy, I. and Shoham, A., 2018. The power of international marketing functions: antecedents
and consequences. Journal of Business-to-Business Marketing. 25(2). pp.67-89.
Ibeh, K., Crick, D. and Etemad, H., 2019. International marketing knowledge and international
entrepreneurship in the contemporary multi speed global economy. International
Marketing Review.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era. International Marketing Review.
Kim, S.H. and Lee, S.A., 2020. The role of marketing communication mix on Korean customers'
coffee shop brand evaluations. Journal of Hospitality and Tourism Insights.
Papadopoulou, C., 2019. The power of mindset: Managerial mindset effects on international
marketing decisions (Doctoral dissertation, University of Leeds).
Sinkovics, R.R., Jean, R.J.B. and Kim, D. eds., 2016. Advancing the international marketing
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Verbeke, A and et.al., 2019. Five configurations of opportunism in international market
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Watson IV, G.F and et.al., 2018. International market entry strategies: Relational, digital, and
hybrid approaches. Journal of International Marketing. 26(1). pp.30-60.
Wilson, D., 2016. Marks & Spencer: the quest to master the new millennium. The Business &
Management Collection.