International Marketing: Key Concepts, Scope, and Market Entry Strategies

This document provides an overview of international marketing, including key concepts, scope, and market entry strategies. It discusses the rationale for marketing internationally and the criteria to consider when entering international markets. The case of Morrison's expansion into India is used as an example.

INTERNATIONAL
MARKETING
1

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Key concepts and scope of international marketing.............................................................3
P 2 Rationale for marketing internationally................................................................................4
LO 2.................................................................................................................................................6
P 3 Key criteria and selection process to be considered at time of entering international market
.....................................................................................................................................................6
P 4 Different market entry strategies..........................................................................................7
LO 3.................................................................................................................................................8
P 5 Overview of key arguments for global versus local marketing............................................8
P 6 Investigation that how marketing mix different when it comes to international marketing
...................................................................................................................................................10
LO 4...............................................................................................................................................11
P 7 Various international marketing approaches......................................................................11
P 8 Comparison of home and international orientation and ways of assessing competitors....13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17
2

INTRODUCTION
International marketing is defined as the application of the different marketing principles
in order to satisfy the needs and desire of the consumers at the international level. This is
necessary because of the fact that in this globalised business environment the company need to
market for running and operating their business (Mohr and Batsakis, 2018). Thus, for this it is
necessary for companies to expand at international level and market their goods ands services at
international level. The present report is based on company Morrison which is planning to
expand in India. The Morrison is a chain of supermarket which is fourth largest chain in UK and
is headquartered in Bradford. The company was founded in the year 1899 by William Morrison.
The present report will start by the discussion on concept of international marketing and
the reason behind marketing internationally. Further the discussion will list out different criteria
to be considered at time of entering international market. Next the different market entry strategy
to be used by the company will be highlighted. After that the arguments for global and local
marketing will take place. Next the discussion will outline that how the marketing mix differs
when marketing is done internationally and when done at local level. In the end the different
marketing approaches and comparison of home and international orientation will take place.
LO 1
P 1 Key concepts and scope of international marketing
In the words of Cateora the international marketing is referred to as the performance of
company and its activities which direct the flow of the product and services which are offered to
the consumers all over the world. The concept of international marketing is gaining a lot of
popularity in the business because no business can survive in this highly competitive world.
Thus, for gaining success the most important thing is the proper and effective use of the
marketing strategies and approaches over the international market. The major scope of
international marketing for Morrison in way of expanding in India is that the company will get
an opportunity of expanding the business (Morgan, 2017).
This is helpful for company because now it will have an opportunity for growth and
development of company. Another major importance of going for the international marketing is
that this increases the brand value and goodwill of the company. This is majorly because of the
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reason that the company in which currently the company is operating is famous and when it goes
in some different country then this will increase the goodwill in that country as well.
The major scope of international marketing includes the following points-
 Import- this is a system which includes buying goods and services into the country from
outside the country in order to sale it in the domestic country (Nature, importance and
scope of international marketing, 2019).
 Export- this is another major scope of international marketing which includes the selling
of goods produced in domestic country in some other foreign country.
 Re- export- this is another major scope of international marketing which includes
importing the semi- finished goods from other country and then processing it in domestic
country and then exporting the finished goods and services to another country.
 Management of international operations- this includes the different types of operations
which can take place at time when the international business are taken which includes
operating marketing and sales, production and operation, monitoring of all the operations
which take place when the international business is carried on.
Thus, in the end it can be said that for running and operating the business in successful manner
the most important thing is to manage the operations at the international level. This is necessary
as at international level the company gets more opportunities to grow and develop. But in the
contrary there is also a disadvantage of this because in the international level the competition is
very high and there are many chances of losing the consumers and the market share.
P 2 Rationale for marketing internationally
In the present report Morrison is thinking of expanding the business and operating in
India. In this present competitive world there is a high need for the company to go in the race of
global trade. This is majorly because of the reason that if the company will work internationally
then the profits of the company will increase to a great extent. This is majorly because of the
reason that when the company will work in other countries then this will increase their consumer
as this will increase the number of consumer as they will like the foreign brands.
This is majorly because of the reason that if the company will not go in the international
market then it may become obsolete and old in its product and services and the operational
methods which it is using (Mohr, Batsakis and Stone, 2018). The major reason for Morrison to
enter into India is that this will help the company in managing its business and increasing its
4

operations in other country. Thus, this will help the company in expanding and attracting the
consumers of different countries as well. Thus, this will help the company in increasing the
presence in the international market and this will help the company in connecting the business all
over the world (Nash, 2019).
This is necessary for Morrison because if they will not adapt to the latest changes taking
place in business environment then they will not be able to earn good amount of profit. Hence,
the major rationale for the going to international level marketing is to earn more profits and
increase the productivity of the company to a great extent. This is majorly because of the fact
that when the company goes for the international market then the company come to encounter
much bigger market and large range of consumer. Hence, this includes the company to increase
its operation and for this it is necessary for Morrison to study the environment of India before
entering into the company.
Another major reason for going for international marketing is to be with the latest trend
of the whole business environment. The business environment is referred to as the sum total of
all the internal as well as external factors which affects the working of the company to a great
extent. Thus, in the current external environment the trend is of doing global business. Thus, if
Morrison will not operate internationally then the domestic consumer will also not like the
products of Morrison. Thus, for not losing the number of consumer the Morrison selected the
option of entering in the India. They selected India because of the fact that this is a developing
country and the consumer of India is more attracted towards the product of the foreign
companies. Hence, here the company has the opportunity of covering the large market share. But
the major challenge being faced here is that maximum of the population belongs to rural areas
and they not have the habit of using trendy and high class products.
As per the views of Legner and et.al, (2017) The major opportunity for the company in
the international market is to invest in the social media and digital marketing as these are the
latest changes or the trends going on within the market. Also, another major challenge is to go
online for the running and operations of the business like online buying and selling of goods and
services, online mode of payments, online marketing and many others. But in addition to this
also there are many of the challenges as well. The major challenge faced by the company is the
training which need to given to the employees of the company for operating the new technology
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and social media marketing. Also, in addition to this another challenge is the frequently changing
business environment and trends of consumers.
LO 2
P 3 Key criteria and selection process to be considered at time of entering international market
For entering into a new country it is a big risk for the company because there are
possibilities that the company may fail in the other country (Ramanathan and et.al, 2017). Hence,
there are many different factors which the company that is Morrison need to consider at time of
entering in India. The major consideration and selection criteria for Morrison to enter in India are
as follows-
Cost- this is the most important factor to be considered before entering into the new
market. The cost is referred to as the money which is incurred at time of producing the goods and
services of the company (Ratcliffe, 2018). If the cost for the company is very high and if the
same or excess amount of sales is not happening then this will be a loss for the company. Thus, if
the cost of entering in India is very high for Morrison then this will not be a profitable
transaction for the company.
Availability of raw material- this is another major factor to be considered at time of
entering in any new country. This includes the fact that whether the company will b able to find
all the raw material required by the company at time and with reasonable cost or not. If the raw
material is readily available to Morrison if they enter in India then it will be beneficial for the
company.
Market entry mode- this is the most important factor to be considered at time of entering
in new country. This is because there are many different ways through which the company can
enter into any other new country. Hence, for better result Morrison need to market research a lot
that which market entry mode will be good for the company and will be more advantageous.
Market evaluation criteria
The selection criterion is referred to as the fact that all the factors of consideration are
having positive impact over the working of company and its profitability. Thus, the selection
criteria for Morrison to enter in India are the low cost and timely availability of raw material.
This is majorly because of the fact that if the cost of producing in India is low then this will be
profitable for the company. Also, if the raw material in India will be made timely available then
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it will be beneficial for the company as the production will take place on time or even before
time. Thus, this will be liked by the consumers and thus, the sales of the company will increase.
P 4 Different market entry strategies
The market entry strategy is referred to as the strategies or modes through which one
country can enter into another country for doing business. There are many different methods for
the entry of Morrison in India which are discussed as follows-
Merger and acquisition- this is a method which means that the company either merge
with some existing company in India which is also working in retail sector (Ramanathan,
Subramanian and Parrott, 2017). On the flip side acquisition is referred to as the acquiring the
other company by taking full control of the company or some agreed percentage of control and
ownership. For Morrison this method will be beneficial because this does not involve much
investment and is very less risky as they acquire or merge with existing company.
Advantage
The major advantage of using merger and acquisition by Morrison is that there will be synergy
effect because the assets and liabilities and the efficiency of both the companies will merge and
this will result in much better outcomes (Swaffield, Evans and Welch, 2018).
Disadvantage
But the major drawback of this method is that there might be high turnover of employees as
some of the post and designation are same on similar companies and two employees on that will
not be beneficial for the company.
Joint venture- this is referred to as the method of entry wherein the company joins hand
with other similar company for accomplishing a common objective. After working together as
the objective is achieved the joint venture comes to an end. This is a good method of market
entry in another country as both the companies have their own control and ownership. The joint
venture includes pooling of the funds together in order to accomplish the objective and as the
objective is attained the business comes to the end. Thus, now both the companies work
separately.
Advantage
The major advantage for Morrison if they choose joint venture is that this method will bring in
more expertise to run the business without any of the investment. This is majorly because of the
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fact that both the company work in same direction and expertise of both the companies are
having are shared without much cost being involved.
Disadvantage
The major disadvantage of using this by Morrison as a market entry strategy is that there is not
much flexibility of decision. This is majorly because of the reason that any decision is being
taken by the consent of each and every person of both the companies. So in case the decision is
not correct or appropriate then it will not be possible for the company to take consent of all the
members of both companies again (Teller, Brusset and Kotzab, 2019).
M 2
The major opportunity of selection of the entry mode is that this will assist the company in
entering in new country in proper and effective manner. But the major challenge in adapting to
the entry mode in the cost of entering within the new country is very high.
The selection criteria for the market entry strategy is to analyse the benefits and the drawbacks
which the company will be facing if they select the one entry strategy. Then on the comparison
which ever strategy will be having less drawbacks and more of benefit that will be selected.
Recommendation
After the discussion it is clear that the mode of entry need to be selected in more effective and
efficient manner. This is because of the mode of entry is not good then it might be possible for
the company that they can incur more cost or may suffer loss. Thus, the best method
recommended to Morrison at time of entering India is joint venture. This is majorly because of
the reason that this not involves much investment and also the assets and power are divided by
both the companies. Also, here many of the expenses and cost of working and running the
company are decreased because both the companies operate at same level (Vellas, 2016).
LO 3
P 5 Overview of key arguments for global versus local marketing
The local marketing is defined as the marketing the goods and services of the company in
the local market. The local market is the market where the company is already having operations
within the country. On the flip side the global marketing or the international marketing is the
marketing which is done at time when the company is operating at the international level. Thus,
both the local and international marketing are different from one another in many ways. Both the
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local and international marketing is very different from one another and the major difference is
as follows-
The major argument for the global and local marketing is that the company has to incur a
lot of cost at time of doing international marketing as compared to local marketing. This is
majorly because of the reason that the international marketing involves a lot of cost as the area of
marketing is very high. Thus, the local marketing does not involve that much of cost as
compared to the international marketing. The major reason hat local consumers are known to the
goods and services offered by the company but this is not in case when the company goes in
some other country. Thus, here the cost is levied more as compared with the local marketing.
Another major argument against the difference of local and global marketing is the level
of expertise and hiring of professional marketing people. This is majorly because of the fact that
in case of local marketing there is not much requirement of any marketing expert or professional.
Hence, the employees of the company can also arrange for the marketing of the company and its
product within the local market (Skarmeas, Zeriti and Baltas, 2016). The common method of
marketing is the word of mouth wherein the existing consumer by sharing the experience of them
while using the product and services of Morrison. But this is not in case of international
marketing because here the number of consumer is more and the company is not able to manage
it with word of mouth. Here it needs to use different methods of marketing like social media
marketing, digital marketing, sponsorship and many other different types of marketing strategies.
Also, in case of local marketing the competitors are less as the consumer does not have
many options to purchase the goods and services (Morgan, Feng and Whitler, 2018). Hence, here
the competitors are less and because of this the investment in marketing activities is less as
compared to the situation wherein the competitors are high. This is in case of international
marketing as in case of marketing globally the competition is high because whole world is single
business area. Thus, the investment in marketing at international level is very high for Morrison
at time of entering in India.
M 3
For adapting to the global or local approach it is advisable to the company to go for global
approach as this will give more growth opportunities to the company for growth and
development. This is majorly because of the reason that the global approach will give wider
business environment and this will increase the working effectiveness of the company.
9

P 6 Investigation that how marketing mix different when it comes to international marketing
Product: In respect of understanding the marketing plan, products play the important role
regarding targeting the customer towards the business. As in terms of local area, it is quite easy
to target the customer by providing the products which satisfy their needs or prepared with
organic and eco- friendly elements. In respect of international level, such as in respect of
promoting the products in India, they are mainly attracted if they received the products with high
quality and standards (International Marketing Mix, 2020). As customer mainly make the
decision through viewing the products instead of examining the ads on television through taking
decisions. Thus, in respect of adapting the strategies relating to the standard product or
customized product can strength the brand image of the business and also enhances the value by
dealing in providing more quality products.
Pricing: It plays the major role in the business as through this aspects, Morrison is facing
tough competition in market and thus also carrying pressure regarding managing the pricing in
better manner. In local area, customer are attracted if they find the penetration pricing which
results in setting low prices on the product to retain the customers. In respect of entering into
foreign market i.e. India people are attracted through getting the best products at low prices
(Alexander, Nobbs and Varley, 2018). Indian people are attracted if they get low prices products
with best quality, thus it results in getting lot of customer towards the business. It also results in
eliminating the competitors as less competitors adapted this strategy regarding selling the
products as per their actual price cost.
Place: As local people mainly prefer to the physical stores to purchase the products as
they carry the thoughts regarding examining the products by their own. Similarly in case of
India, the thoughts are same instead of preferring the online services; they mainly focus on
visiting to physical stores to purchase the products (Amankwah-Amoah, Boso and Debrah,
2018). Indian people mainly focus on buying the products from the wholesale market, thus it is
necessary in building the strong connectivity with the local market of the India regarding
examining the taste and preference of choosing the particular products.
Promotion: In respect of promoting the business through social media marketing results
in gaining lot of interest of customer towards the business. As local people are attracted if they
get additional discount on the products which they are offering. But in case of India, people are
attracted through the colourful ads which can fulfil their needs and also bring new concept in
10

business (Baker and Hart, 2016). Thus, before launching any services in India, it is necessary to
carry PEST in which the external issues are identified and also be overcome to gain benefits for
longer way.
M 4
As per the views of Išoraitė (2016) the marketing mix will help the company in deciding
for organization to enter in different international market. This is majorly essential because of the
reason that the marketing mix help the company in deciding the fact that what will be the product
with which the company will operate in international market. Also the price and place will help
the company in managing the profits of the company. Also, the promotion of the marketing mix
helps the company in deciding that which method to use for promotion of goods and services.
But in against of this Datta, Ailawadi and Van Heerde (2017) argues that if the decision relating
to all the aspect of the marketing mix are not taken in good and proper manner then this will
impact the working of the company to a great extent.
LO 4
P 7 Various international marketing approaches
In respect of examining the various international marketing approaches, Morrison can
adapt various attractive approaches to expand business in India in the form of centralized and
decentralized way. As due to changes in time, the demand of the customer are also changing and
thus resulting in adapting the centralized and decentralized approaches in various perspectives.
Centralized approaches: This is mainly undertaken by the marketing team of Morrison in
respect of promoting the business at global level. Thus, this is only undertaken in respect of
carrying the highly competent team which connect with the global world through promoting the
services in better way (Blackley, Resnick and Cassidy, 2017). This is also undertaken in respect
of finding the experts which can guide and instruct the marketing team to undertake right steps to
expand the business at international level. In such manner, to sustain the position of the business
at global level, it is necessary to shortening the sales cycles and also in return increasing the
chances of winning the customer reviews. Thus, it in examined that in this case the marketing
team is to be strengthen and also their talent is to be managed in right perspective. As the growth
of the business is undertaken through this perspective only.
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Advantage- the major advantage of using the centralized approach of the marketing is
that this is very helpful for the business in growing and this also includes all the decision making
power in the hands of main management only. This will assist Morrison in managing the
marketing in more effective manner as in the centralized approach all the decision and strategies
will be made by the top management only. Thus, this will ensure that all the decisions are taken
timely and the decision are effective and good.
Disadvantage- the major disadvantage of using this method is that this does not takes into
consideration the ideas and views of different people and employees within the company. For
Morrison this is not good as it is not possible that the top management of companies know all the
aspect of working and it might be possible that the decision taken by company can be wrong.
Thus, this will impact the working of Morrison in wrong manner.
Decentralized approaches: By applying this approach, it helps in mainly focusing on
innovating the services which is provide in the Morrison hotels. As customer are attracted if they
find their own culture, food and languages used in the places and thus prefer to visit or book such
places for their stay. Thus, in respect of entering into international market, it is necessary to
make strong bias towards the local languages and local sales connectivity with the people
(Christofi, Leonidou and Vrontis, 2017). The main focus which is to be undertaken is relating to
the providing accurate training to the marketing staff so that they are coordinating with the
people in right way. By adapting this approach, it helps in controlling the techniques and bring
creative ideas to promote the brand image in right manner.
Advantage- the major advantage of this method is that this helps the company in
attracting most of the consumers and providing them with all the innovative and latest
technology. For Morrison this is advantageous because this will include the ideas and new
suggestion and this will increase the working efficiency of the company.
Disadvantage- on the other side the major drawback for Morrison for using this method is
that here a lot of training need to be given to the employees for using the latest and innovative
method of marketing the goods and services within the highly competitive market.
Thus, by understanding both the international marketing approaches, it is necessary to
choose the single marketing approaches to gain the longer term benefits at international level.
Thus, in case of adapting the decentralized marketing approaches, it helps in managing cost in
the hotel and also save the resources for future perspective. Instead of targeting the international
12

market such as India, it is necessary to strength the local business to represent the accurate
reviews of the business and its services which they are providing at global level (Hånell and et.al.
2019). As India is carried to be major priority of traveller and the taste and preference of
choosing the hotels are also different. Thus, in respect of adapting the effective marketing
techniques, it results in reaching to large number of customer towards the hotels.
P 8 Comparison of home and international orientation and ways of assessing competitors
Morrison is located in their home country UK and they are planning to expand the
business at global level such as in country of India. The comparison of the home and
international orientation are as follows as:
Bases Home Orientation International Orientation
Market perception This is mainly undertaken
through interacting with
customer personally and
taking reviews regarding
making changes in company
strategies (Herstein and et.al.
2017).
In this, it is mainly
undertaken regarding
managing the customer of
India through taking the
reviews online. In respect of
getting positive perception
resulting in enhancing the
brand image and also
goodwill of the company.
Market strategy In domestic country, this is
undertaken in respect of
designing such products
which fulfil their needs and
demands at larger way.
Advertisement is one of the
best mode which results in
attracting the consumer to
become the customer of their
business.
Benefits  Less cost is required
to promote the
business.
 The business is
managed through
undertaking the less
experiences person to
attain the task in
better way.
 Economies of the
country are enhanced
through getting more
profits in the business
(Hoang, Barnes and
Munroe, 2019).
 It results in learning
new trends in the
business and also they
13

 There is high priority
of the business to
enter into the
international market.
enhanced the
reputation through
adapting wider
culture people at
work place.
Weakness  It is tough to gather
relevant information
which is undertaking
in the international
market.
 As due to changes in
taste of customer,
they are facing wider
quantity of the
wastages in the
existing products or
services (McIntyre,
Melewar and Dennis,
2016).
 Morrison Company
adapts the
standardized
procedure in respect
of targeting the
customer towards the
business but in major
cases this procedure
is failed in reaching
to large number of
customers.
 It carries the major
chances of lack of
managing the
operational activity in
respect of not using
attractive strategies to
retain the interest of
employees at work
place.
It is very essential for the company to assess the competitors within the highly
competitive market. This is essential because if company will not have a look at the policies and
procedures of the other competitors then the company will not be able to get a good position
within the market. Thus, the most important method of assessing the competitors is the market
research. This is because of the reason that when the company researches for the different
competitors then they come to know that what strategies are being used by the competitors. Due
to carrying the renowned brand image in the market, there are various competitors in the market
which are promoting the same business at global level. Thus, various steps are to be undertaken
regarding managing the implication through outlining the approaches are as follows such as:
 The marketing mix and the production of the products are depending upon fulfilling the
home country requirement and then focusing on international market. As through this
14

manner the wastages can be reduced and allows the production of the new and designing
products are to be undertaken (Mogaji and Danbury, 2017).
 Competitors are now using the international marketing strategies which resulting in
providing the quality products to the customers. Thus, in respect of attracting the
customer towards the business, it is necessary to set standards and then target the market
to gain longer term benefits.
In respect of recommending the organizational structure which is adapted by Morrison in
respect of maximizing the opportunity through adapting the hierarchy structure which results in
gaining longer term benefits in the Morrison. As in this aspect, it results in providing training to
particular staff to interact with their superior before taking any decision. As in respect of entering
into India, it is necessary that they carry the adequate marketing research and also carry the
strategies such as shortening the sales in the business or increasing the brand image (Hånell and
et.al. 2019). Thus, resulting in setting the appropriate strategy regarding attracting the particular
segment so that they can promote the business easily. As Morrison are famous for its grocery
products thus targeting the women through providing products at reasonable pricing resulting in
gaining more profits in the business.
M 5
The different marketing approaches are very helpful for the company in increasing the sales of
the company. This is majorly because of the reason that in this globalised business environment
it is essential for the company to use effective approaches of marketing.
CONCLUSION
From the above study it is concluded and inferred that marketing at international level is
very necessary for success of company. The major reason pertaining to the fact is that in this
highly competitive world for the company to become successful the most important thing is to
manage the operations of company at international level. This is because the whole world has
become single business place where any country can do business with any country. Thus, the
present report stated that international marketing is very necessary and its scope includes import,
export, re- export.
Further it stated that the major reason behind going for international marketing is
expansion in new country and increasing the range of business. The next thing outlined in the
report was the different factors to be considered at time of entering in new country and these
15

were low cost and timely availability of raw material. Next the various strategies of entering in
the market internationally were discussed like merger and acquisition, joint venture and many
others. But after the discussion the recommended strategy was joint venture because this venture
comes to an end as and when the objective is attained. Also, the different marketing approach
like decentralized and centralized approaches of marketing was discussed. In the end the
marketing mix was discussed and how it differed at both local and international level was
highlighted. Lastly the comparison of home and international marketing approaches was made.
16

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