Impact of Internationalisation on Marketing Activities

The report examines the effect of internationalisation on marketing activities, using Cadbury as an example. It highlights how internationalisation increases the complexity and standardization of marketing efforts, affecting marketing mix strategies, entry methods, and promotional approaches.

INTERNATIONAL
MARKETING

EXECUTIVE SUMMARY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Impact of Globalisation on International Marketing...................................................................1
TASK...............................................................................................................................................5
Application of International Marketing.......................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International Marketing is a procedure that allows an individuals to run their business
activities on multinational level for generation of higher market share and to obtain greater profit
margins in other countries. This activity enables managers to think beyond the boundaries.
International marketing is stated as application of marketing rules and regulation along with
principles on globalisation manner, according to particular business environment of nation.
International marketing is a process of applying marketing mix procedure and use of its four
criteria like product, price, place and promotions. Cadbury is the world’s second largest company
that is dealing in confectionery industry (Terpstra, Foley & Sarathy, 2012).
TASK
Impact of Globalisation on International Marketing
Globalisation is a process or establishment of interaction between two or more nations by
offering organisation’s products and services. Main driver of this action is international trade and
investments. This could be more efficient if managers of Cadbury take advantages of information
technology in order to understand international market as this action will further help in
manufacturing actual number of goods of company.
Globalisation works as an umbrella and provides shelter to many other actions that happen in
organisation like technological, economical, task related to social responsibility etc. these actions
are more useful in providing independence to Cadbury. There are many examples like economic,
skill, technology and knowledge. Globalisation that is stated in this report is to be considered as
awareness of general problem.
Impact of Globalisation
Globalisation is having impact upon almost every kind of business activities. When a
corporation wants run its business activities beyond the boundaries then it provides support to all
marketing activities because aim of bringing business operations on international level is to
capture higher market share. Most of marketing activities revolve around these actions. There are
some effects that globalisation leaves upon marketing is discussed as further:
Effect upon STP: Full form of this term is to Segmentation, Targeting and Positioning of goods
and services of firm (Czinkota & Ronkainen, 2013). When Cadbury made decision that they had
to establish their footprints in international marketing, then the very first thing that was decided
by owner of the firm was the answers of question that is decision should be prepared upon where
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association has to go in the path of becoming internationalised product. Selection of market
segmentation according to future scope of needs and demand of clients depends. Before making
selection on market segmentation, all rules and regulations should be considered by leader of
company so that negative impact upon association could be removed from functionality of
Cadbury. For example, if corporation is about to launch their new chocolate in market of any
Asian nations like India, because in this country, people have sweet tooth and can use chocolate
as sweet (Berthon & et. al., 2012). After targeting products and position then company will chose
one and more than one option as their target market. After setting market target then it is a
responsibility of firm that they should find out appropriate strategies for positioning. In targeting
market, company develops some advertisements that are able in hitting actual needs and
demands of customers. Information about these wants can be gathered by taking assistance of
appropriate research program. Adequate result of data is able in formulating efficient marketing
strategies that are useful in hitting purpose of becoming internationalisation in most profitable
manner. After accomplishing above two functions, next task is brand new operation in which
corporation has to develop adequate strategy for market positioning. Cadbury can position their
market by taking assistance of some tag lines like hunger should be satisfied at that time when it
was raised. Globalisation has been changed and is showing positive impact upon various
business operations. This situation is more understandable by taking an example. For instance,
Cadbury launched a product and then segmented market share into age wise group like
youngsters and then positioned their chocolates as valentine gift and this idea hit many minds in
marketplace and brought huge success in corporation. This type of action completion is able in
making company as a brand in the eyes of customers as well as this type of behaviour of
Cadbury is able in fixing footprints of firm in new market of country like India.
Effect Upon Marketing Mix
When value of an item is equally available for all customers, then this term is defined as
global products because these kinds of items are having less nature of being flexible
(Papadopoulos & Heslop, 2014). When corporation used to work in domestic country, then it
paid attention upon taste and preferences of customers so that their demand could be attained in
the most successful manner and this action is helpful in the point of view of clients that Cadbury
is able in catering consumer needs and wants but in today’s era, due to globalisation, area of
functioning marketing activities has been become wider because area of operation is greater
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along with dealing has been become more larger while handling more customer at the same time.
Following is description of four marketing mix criteria:
Product: - Due to globalisation, area of working of marketing department has been increased and
main cause of conducting this action is capturing larger market share and to record their presence
in novel market share. As Cadbury is dealing in confectionery industry and this section is always
present in market of any region of each country, then it is to be comprehended that corporation
could produce a globalised item that must be able in being sole as this section is very commonly
found in every country. A globalised product could be manufactured by taking assistance of
various appropriate strategies (Paliwoda & Thomas, 2013).
Price: For dealing in international market, an adequate price should be set so that member of
every region would be able in purchasing product of Cadbury whether their income level is
anything. This is a complicated task to set price before all factors that should be taken into
consideration is not easy to calculate and impact negatively on the action of price setting and as
resultant price is to be set sometimes on hike that reduces customer base. Sometimes, company
set a price according to traditional pricing method in which fixed cost and variable cost is to be
added because these two factors have their vast impact upon settlement of price.
Promotion: This term is widely used because today’s era is time of advertisement by providing
various options like social media, internet, post of add on various online and offline methods.
The world has become smaller as internet launched various tools and technologies and these
methodologies are able in connecting a person to another by providing some messenger
techniques.
Drivers of Globalisation
There are many drivers which are responsible for bringing internationalism in Cadbury.
Description of all these factors is stated as follows:
Market Drivers: - This section comprises following points but not strictly bounded in these part.
This segment has some components which are elaborated as follows:
 Globalise Consumers: Taste, Lifestyle and preferences
 Globalise Distributor and Brands
 Globalise Marketing and Promotional Message. Emergence of countries as new opportunities (Meissner, 2012).
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Cost Drivers: - Elements of this section are explained as follows:Economies of scale and in
addition to learning curve effect. Sourcing efficiencies and favourable logistics. Differences in
country costs including exchange rates of currencies (Majaro, 2013). Changes in PLC.
Government Drivers: This section includes several points and all these factors are stated as
follows:
 Reduction in tariffs
 Growth of compatible technologies.
 Uniform or common marketing regulations. Regulation of host government country.
Competitive Drivers: This section consists of various points which are accessed as follows:
 Increment in world trade levels
 New competitors
 Global networks in few countries.
 Transferable rivalry benefits.
Above are some drivers that are responsible for bringing criteria of globalisation in
Cadbury. These some aspects which have wide impact upon growth of international marketing
activities because internationalisation is lesser concept than globalisation (Hoppner and Griffith,
2015).
International Marketing Strategies
There are two kinds of tools that have their usefulness in strategy formulation before
making entry in new market i.e. a novel country. Both of that nations are stated as follows:
Ansoff Matrix: This method is having four criteria that are helpful in identifying a market that
must have identical opportunities to run business operations. These four aspects are described as
follows:
Market Penetration: It means when a firm wants to launch its existing product in current
marketplace for fulfilling purpose of diversification. In this, product is introduced with some
extra features to retain market share (Tan & Sousa, 2013).
Market Development: When new product is launched in existing marketplace for
diversification and this action tells that how much opportunities are present for existing
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company. In this segment, company knows about opportunities and threats (Kanibir, Saydan and
Nart, 2014).
Diversification: When new product is launched in new market is called as diversified
strategy of a firm. This tool is helpful in capturing a new market which has lots of scope
identified for corporation.
Product Development: When a novel item is introduced in current market, then it is
called as company made a new product with some remarkable development. This type of
strategy is helpful because company knows all risk factors that are present in market and can
make further decisions on the behalf of this.
Acquisition: When a large company acquires a small size organisation for forward or backward
integration, then it is called as acquisition. This strategy is most useful in the case of market and
business expansion. Formulation of this type of strategyis that everyone can not make in tehir
business as it requires higher amount of financial resources and lots of time and highly skilled
strategic manager who can formulate this type of tactic (Kraus and et.al., 2016).
Merger: When two firms collaborate with each other to share their business operations in order
to complement each other then it is called as merger. This strategy is used when both
organisations are not doing well in industry and they want to compete with other large size
corporation. For example, if Cadbury collaborated with any other confectionery firm in order to
use their successful products for increasing brand value of corporation is called as merger
(Cavusgil & Cavusgil, 2012).
TASK
Application of International Marketing
Impact of Marketing Strategies on Marketing Mix
Marketing mix is a tool that comprises all marketing activities in order to make them
systematic for excellent execution of association and these aspects also reflect impacts of
international market. Elaboration of all these factors is as follows:
Product: In this section, according to globalisation, standardised product should be
manufactured. In this segment, offered product in whole world on same page and according to
item Cadbury can launch their product in any country because a standardised item is developed.
Price: To bring this criteria in international marketing then a prominent rate for products
should be set by considering all aspects that are related to that particular country (Samaha, Beck
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and Palmatier, 2014). It should be ensured by management of company, there should be not
major changes when price is set country to country (Evers, Andersson & Hannibal, 2012).
Place: A prominent placement of product should be choose so that proper distribution of
item could happen in the reach of consumers. This section belongs that when firm is going to
launch its business operations internationally then distribution of product would get happen
according to nature and available logistic and transportation of that particular nation (Gnizy and
Shoham, 2014).
Promotion: Task of marketing department gets increased when organisation introduced
their product in new nation because all publicity stunt would be attained according to availability
of resources and techniques. For example, if electronic media is not present in poor countries,
then promotion would get done by other methods like print media.
Above analysis is shown that when Cadbury did not expand business operations then
their level of all functions were less but now a days when organisation adopted expansion of
business then it is clear that level of working of marketing department went hike. Marketing mix
strategy for a company before introduction of internationalisation was less but now, scope
becomes wider.
Marketing Entry Strategies: Due to application of internationalisation, marketing
activities become more complex and static as well as standardisation has been brought in
products and services. International marketing have lots of impact on business operations like in
marketing entry strategies of Cadbury (Choi and Yeniyurt, 2015).
CONCLUSION
This report is summarised as international marketing is a process that is done on several
basis like economically, skill basis, technologically and socially. The given assignment focuses
impact of application of internationalisation on marketing activities are vital & important and on
the other hand globalisation is a factor that put the entire world on same page and brings
equality in actions of all functional departments of corporation.
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REFERENCES
Books and Journals
Berthon, P. R. & et. al. (2012). Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). 261-271.
Cavusgil, S. T., & Cavusgil, E. (2012). Reflections on international marketing: destructive
regeneration and multinational firms. Journal of the Academy of Marketing Science.
40(2). 202-217.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Evers, N., Andersson, S., & Hannibal, M. (2012). Stakeholders and marketing capabilities in
international new ventures: evidence from Ireland, Sweden and Denmark. Journal of
International Marketing. 20(4). 46-71.
Majaro, S. (2013). International Marketing (RLE International Business): A Strategic Approach
to World Markets. Routledge.
Meissner, H. G. (2012). Strategic international marketing. Springer Science & Business Media.
Paliwoda, S., & Thomas, M. (2013). International marketing. Routledge.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in
international marketing. Routledge.
Tan, Q., & Sousa, C. M. (2013). International marketing standardization. Management
international review. 53(5). 711-739.
Terpstra, V., Foley, J., & Sarathy, R. (2012). International marketing. Naper Press.
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