Scope and Key Concepts of International Marketing

This document discusses the scope and key concepts of international marketing, including the rationale for marketing internationally and the various routes to market. It also explores the opportunities and challenges of marketing internationally.

INTERNATIONAL
MARKETING
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Table of Contents
INRODUCTION..............................................................................................................................3
P1 Analyse the scope and key concepts of international marketing......................................3
P2 Explain the rationale for it to want to market internationally and describe the various
routes to market the organisation can.....................................................................................4
M1 Opportunities and challenges that marketing internationally..........................................5
D1 Evaluation of the international market where how organisation should adapt to their
marketing strategies................................................................................................................6
TASK 2............................................................................................................................................6
P3 Key criteria and selection process to enter international markets.....................................6
P4 Different market entry strategies and the advantages and disadvantages.........................7
M2 The market evaluation criteria and entry strategies and recommendations.....................8
TASK 3............................................................................................................................................8
P5 Overview of the key arguments in the global versus local debate....................................8
M3 Organization should adopt a global or local marketing...................................................9
P6 Product, price and promotional distribution approach differs in international markets....9
M4 The marketing mix.........................................................................................................10
D2 Evaluate how the marketing mix is applied to a range of international contexts...........10
TASK 4..........................................................................................................................................10
P7 Explain and analyse the various international marketing approaches.............................10
P8 Compare home and international orientation and ways to assess competitors...............11
M5 Evaluate various marketing approaches and competitor analysis and make
recommendation...................................................................................................................12
D3 Make recommendation on how organisations should be structured to maximize the
opportunity in international marketplace..............................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INRODUCTION
The organisations are working to expand the business in international markets and the
business activities are planned, operated and strategies and goals are made to achieve profits for
the new market. The growth in the organisation will help them increasing profits and they will
get customers (Asseraf, Lages and Shoham, 2019). International businesses help the
organisations to grow and have the advantage where they will increase the processes. The chosen
organisation for the report is Airdri Ltd. and the partners Peter Phillips and Peter Allen are
engineers and founded the organisation in 1974 in UK. This will help the organisations get in
new markets and customers will get products at good rates. The report includes analysis of the
scope and concepts of international markets, different types of markets, the ways in which it can
be selected and the advantages and disadvantages of the international strategies, marketing mix
of international markets and analysis of the competitors strategies.
P1 Analyse the scope and key concepts of international marketing.
International marketing may be regarded as an idea by which entity is planning to explore
their practise of business at global marketplace. This is much essential for organisational success
and development for maximising their operations into global market. It will aids in grabbing the
attention various audiences towards business and exploring their functions at new market. Also,
it will be aids to attract much audiences and maximising respective firm market share. Along
with this, it will assist to obtain competitive edge over other competitors and enhance their
profitability.
International marketing scope
There is wider global marketing scope for Airdri. Worldwide may be stated as manner
that is basically align with products or service flow towards international market consumers. This
aids them to grow their operations at internal market. So, the Global marketing scope in regards
of Airdri is stated underneath:
 Exports: Herein, organisation would be exporting their final and semi accomplished
goods to global marketplace. Also, it is efficacious procedures for gaining profitability
through grabbing the attention of many clients towards firm. The exporting is undertaken
as procedures wherein Airdri would be determining their offerings desires into worldwide
marketplace (Huang and Sarigöllü, 2020). So, exporting has boarder scope for Airdri as
this directly drive towards maximisation into profitability and base of audiences.
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 Fully owned manufacturing: When firm is fully producing their goods to global
marketplace with an aim of accomplishing desires of audiences. Within completely
owned manufacturing, Airdri would be own new enterprises at international marketplace.
Airdri will become competent to market their offering at new market.
Key concepts of international marketing
There are many business concepts that is associated with worldwide marketing. Global
marketing main concepts in regards of Airdri are described below:
 Domestic marketing: In this form of marketing method, organisation is commonly
targeting local audiences of domestic market. Whole that firms that is operating domestic
activities of marketing have intent to grab various domestic clients’ attention. Airdri Ltd
has to give the products to the domestic customers in different marketing according to
the needs.
 International trade: It is defined as wider aspects wherein organisation is plan for
promoting as well as advertising their offerings at worldwide marketplace. Global trade
marketing for Airdri Ltd. will be operated with aim of influencing clients for earning
large profits.
P2 Explain the rationale for it to want to market internationally and describe the various routes to
market the organisation can.
There are numerous ways by that the firm such as Airdri would become competent to
obtain many audiences and acquire competitive edge upon other competitors firms (Killing,
2020). Respective organisations have to perform their operations at international countries and
explore their functioning. Through entering into new market respective organisation has to
operate practices of business. It will be aids firm to sales their offering to audiences of
international nation. It is vital for chosen firm to develop activities of business and increase their
performance.
Routes to market globally
There are many means by that organisation would be able to market their offerings
globally. Moreover, this is important for Airdri to evaluate and examine all routes. As it will
assists to adopt most effectual way for marketing as well as promoting offerings of the entity at
worldwide. Also, this is helpful in easily market their goods and acquire huge number of clients
towards firm. Respective organisation is rendering standard quality of offering to consumers so
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this is crucial for them to choose the effective routes for global marketing (Trąpczyński and
Wrona, 2020). They may utilise two forms of routes that would be helpful for functioning of
market at global level. The routes are categorised in two such as indirect and direct. Both are
described below:
 Direct routes: It is regarded as a form of international market route that would aids
company to directly communicate their offerings to potential audiences. Respective
routes do not incorporate any kind of intermediaries within clients and entity. Airdri
would become competent for advertising functioning of business to targeted clients.
Within it, they would utilise whole that channel of enterprises which drives towards
selling produced goods to consumers and obtain much profitability. Direct route is assists
to build effective relations with clients and obtaining efficient feedbacks.
 Indirect Routes: Respective routes of marketing firm’s offerings at worldwide level
incorporate that they would be taken assistance from other individuals (Yeates, 2020).
This route to global marketing undertaken as means wherein Airdri requires to connect
with any third party for promoting their manufactured goods. Additionally, they may
acquire this route for marketing their goods and obtaining more attention from new
country clients. Also, it involves many partners that are OEM partners, Channel partners,
Alliance partners and so on.
From the above this has been suggested that Airdri have to adapt indirect route in order to
enter into international marketplace. The Airdri Ltd. can take channel partner as a much effective
method for performing business functioning at worldwide market. As this would be assists those
in operating their business practices with advance technologies in new market. .
M1 Opportunities and challenges that marketing internationally
There are various range of opportunities as well as challenges which are present at level of
marketing (globally) in context of Airdri and these are described underneath:
Opportunities Challenges
Presently, the primary opportunity that
is available with Airdri at global level
marketing is that country where they
are exploring their business which
have favourable climatic situation that
The key challenge that is faced
through entity while operating at
international level is fluctuations
into rates of currency.
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my assists entity to attain targets.
Presently, within country where Airdri
is performing have an effective growth
that may aids them to attain success as
well as maximise their whole
performance.
The frequent modification into
norms as well as rules within
country in other challenge as this
develops several issues to which
firm have to deal with for
performing there.
D1 Evaluation of the international market where how organisation should adapt to their
marketing strategies.
In context of the Airdri, the company will adapt itself to different environment according
to their culture and preferences of customers. The taste and preferences of people differ from
place to place so according to their nature the business strategies would be formulated by
company. Moreover the legal and economic factors also effect the operations of business so
company should identify them and make its marketing strategy in order to make people aware
about the company and its range of products and services.
TASK 2
P3 Key criteria and selection process to enter international markets.
The organisations want to expand in new markets where they can increase profits. They
need to choose a method by which they can enter in international markets. There are many
methods by which they can enter in international markets like joint venture, franchising,
partnership and branching. They need to decide the method which will help them in achieving
the goals of the organisation (Azoulay and Al-Maghribi, 2019).
Airdri Ltd. Is a small scale business of UK which have products like air purifiers and
hand dryers. The company is working in UK for long and wants to expand in internation markets
with the objective of increasing profits by 15%. They need to evaluate the options where they
want to expand to Europe and America. The selection process includes identification of the
market they want to enter to, the type of customers based on the demographics, the value
proposition of the organisation, the products they want to expand. This will help Airdri Ltd. to
make decisions.
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The organisation should conduct the analysis of internal and external market and should
understand the important factors like GDF of the country, political factors, market risks, the
growth of the country, etc. The political factors includes agreements, intervention in the decision
making of the organisation,e etc. They should do the analysis of the competitors because they are
the most important factors for decision making strategies in the new market.
They can make the list of the companies that are operating in the market and are
successful. The factors which are making them successful should be identified and they can be
monitored to increase profits of the organisation (Blythe and Martin, 2019).
P4 Different market entry strategies and the advantages and disadvantages
Airdri Ltd. Wants to expand the business in US and Europe and there are different
marketing strategies which will help them to understand the best strategy to enter in international
markets.
Joint Venture- It is an agreement between two or more companies where they come
together to have profits, risks, make strategies and share the role and they form an new business.
 Advantage- Joint venture helps the organisation to get better resources so that they can
effectively work towards achieving the goals of the organisation. They will get the
insights of the market and will have the access of information of the market they are
entering.
 Disadvantage- The flexibility is not there between two organisations of different
markets. The organisations can face problem because of the communication between the
people (Christofi and et.al., 2018).
Turnkey projects- These are the small project and are on the contracts where the
organisations designs or reconstructs a business which is fully equipped to manufacture and
operate.
 Advantages- It is the most important project for organisations where they do not have to
manage everything and can have organisations whop will do the work for them. It will
help the organisation to manage the work.
 Disadvantage- The cost of the operations in an organisation increases as they will charge
for the project and the decisions are not made by the clients whose business it is but by
the organisation so they have to take the risk.
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Partnering- It is process which helps the organisations to have a long term relationship
with customers and have the strategies which make them successful. They will make them have
good strategies to enter in new markets.
 Advantages- The partnership is the most important factor which is helpful in entering in
international markets. It is a simple process and the organisations can get customers of
the organisation.
 Disadvantage- It will have an impact on the decision making of the organisation and will
have slow process because the organisation will have to understand the market.
Opportunities and challenges for Channel partner strategy for Airdri Ltd in International
market
 Opportunities- Airdri Ltd. Is the small organisation and when they are expanding in the
International market they will get wide customers. The organisation will get the brand
name when they are entering with the channel partner and they will have to increase the
quality of the products. International marketing incorporates set of practices which will
drives towards promotion and business advertisement at global marketplace (Chenery and
et. al., 2020).
 Challenges- Airdri Ltd. has to give different products to customers in the international
market according to the needs. It will increase the cost of the organisation. Airdri Ltd. can
face the challenges in making the strategies when they are working with channel partners.
M2 The market evaluation criteria and entry strategies and recommendations
The organisation have to do the analysis of the different marketing strategies of the
country they want to expand. The competition analysis will include different strategies of
competitors like pricing, sales, profits, growth, etc. Airdri Ltd can have the analysis of different
factors like having local suppliers of raw materials and have a good distribution policy. The
demand is a criteria for the evaluation of the strategies and they should understand the growth of
products and increased demand in the new market. The evaluation of the factors will help them
to choose the best market and this will help them to make strategies (Crick, Crick and Chaudhry,
2020).
The organisation will enter in the new market because they want to expand the business
and increase profits (Hosseini and et. al., 2019). The evaluation of the factors of international
market will help them in analysing products and services which will help them in increasing the
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markets in US and Europe. The organisation will have to choose the strategy which will make
them effective in the international markets.
TASK 3
P5 Overview of the key arguments in the global versus local debate
The globalisation has made it easy for the businesses to grow and expand and it is helping
them to increase the business in international markets. They will make the strategies to improve
the business and help them in increasing profits effectively. Global marketing has helped the
organisations and customers to grow because the organisations will get customers and they will
get the products and services of international market which will attract them. Airdri Ltd. can
have different marketing strategies like social media marketing, online marketing, etc. which will
help them in increasing profits in the organisation.
Advantages of global marketing
 There are many advantages of global marketing as it will increase the growth of the
organisation and will have products and services for customers.
 They will attract customer and they will get good experience of international products.
Local marketing will attract customers of a region or a city where the organisation is and
they will make products and services which are for local customers (Kubacki and
Szablewska, 2019).
 It will help the organisation to have a strong relationship with customers and will have
profits by increasing products and services of the organisation.
Advantages of local marketing
 The organisations will reach the local customers and it will increase profits of the
organisation.
 This will help the organisation because customers will feel that they are making products
and services for them.
 The marketing strategies of global and local marketing is different and the organisation
should choose which strategy they want to have which will help them.
M3 Organization should adopt a global or local marketing
The organisation will have to make the strategy for adoption global or local marketing
strategy. The advantages and disadvantages of the strategies should be analysed and they will
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have to choose a strategy which will help them to grow. The best strategy for Airdri Ltd. is
global marketing because it will attract customers and they will get the international products
which will help the organisations to increase profits.
P6 Product, price and promotional distribution approach differs in international markets
The organisations have different strategies for increasing profits in the international
market. It is impacted by the demand of customers and products they are making and they have
different strategies to achieve goals of the organisation.
Product- The organisations have to make products according to the needs of customers
in the market. There are many factors which will impact the decisions of customers like the
buying habits, disposable income, religion and political factors of the business (Mbazira, 2019).
Price- Airdri Ltd. have to make the pricing strategy which is low prices according to the
competitors because they cannot have the prices according to the organisation. They have to
analyse the international market and different factors which will help them in planning for
pricing.
Place- The organisations have to make decision of the place they want to have like they
can have online customers directly from the organisation and from different sites. Airdri Ltd. can
have stores in international markets where customers can be attracted.
Promotions- It is a strategy used by the organisation to increase the awareness of
products and services where they will promote them. The advertisement which will help them
top attract customers and will help them in expanding in international markets should be chosen.
The marketing is different in global and local markets and they will have to make strategies that
will make them successful in different markets.
M4 The marketing mix
The organisation have to make strategies for increasing profits. Airdri Ltd. have to make
the strategy for effective selection of product, place, price and promotion because they are
expanding in the markets of US and Europe and customers are different which will make it
important for the organisation. They will be successful when they will increase the demand of
customers in international markets.
 Products- Airdri Ltd. has to make the products according to the needs of US and Europe
customers. The products should be attractive for US customers and good in quality for
Europe customers.
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 Price- The prices for US markets should be high and the prices for Europe market should
be according to the quality.
 Place- The US and Europe customers want the products the the premium places to attract
the needs.
 Promotions- Airdri Ltd. has to involve cost in promoting the products through many
methods ton attract customers.
D2 Evaluate how the marketing mix is applied to a range of international contexts.
International marketing mix strategy includes use of different tools and instruments in order to
obtain positive results in terms of financial outcomes while operating in the international or
global market (Strizhakova and Coulter, 2019). The tools are product, price, distribution and
promotion and while operating the international market the company need to formulate business
strategy after considering legal and socio-cultural of the country in which they are playing to
operate. The company should focus on adopting global marketing mix strategy where company
enters in the international marketplace with its range of products and assumes that consumer will
have similar needs and preferences.
TASK 4
P7 Explain and analyse the various international marketing approaches.
In context of Airdrie they can adopt different international marketing approaches which are
described below-
Centralized approach to international marketing- With the use of this approach, the
marketing team of the company is responsible for taking all type of decision related to planning
and execution, for all its operating business unities. For implementation of this approach the
marketing team need to be highly competent and should be ready to provide solutions to every
business problems. Moreover company need to focus on the development of in-house marketing
capabilities and the scalable procedures in order to provide effective results to company in
international marketplace. This method will help in making its marketing and sales cycle more
strong and controllable and provide the competitive advantage to the company (Vellas, 2016).
Decentralized approach- In this approach the marketing functions and the decisions
related to business operations are provided to different managers and marketing department
operating in different locations. Thus the power to take decision is not in one hand it is distrusted
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among different departments. If any problem or issue area in one location then the their assign
management will look into the matter and provide solution to the problem. The main focus of
decentralized approach is to provide support, guidance and responsibilities to the local marketing
staff of the respective location. This helps in quick decision making and provides effective
results to the business. Moreover this approach helps in developing close and strong working
relations with the representative of the countries and the proper steps taken by the marketing
team provide success to the business (Schmid, Grosche and Mayrhofer, 2016).
P8 Compare home and international orientation and ways to assess competitors.
In context of Airdrie, the company is facing more problems in international market in
comparison to domestic market. The area to be served is quite large in international market
where they have to face high interference of government and in domestic marketing area is small
and have less government interference. In terms of competition the level is quite high in
international market as there are lot of companies who are providing same products and services
to its customers. It’s necessary for Airdrie to come up with new innovative and creative products
in order to attract the customers and to provide strong competition to other business unities.
Polycentric Approach- With the help of this approach company can customize its
products and services according to taste and preferences in order to meet the performance of
customers in the international marketplace.
Regiocentric Approach- With the use of this approach company can operate in foreign
country and focus on success of the business and can export its products to neighbouring
countries. In this way they can establish its existence in the international marketplace.
Geocentric Approach- With the use of this approach Airdrie after analysing the
marketing trends of different locations can adopt a standardized marketing mix for all the
international market.
Porters 5 forces
 Bargaining power of suppliers is higher for Airdri Ltd. because they are giving products
according to the needs of customers and they are giving good quality products.
 Bargaining power of buyers is low for customers of Airdri Ltd. because they are giving
services that are not provided by many organisations.
 Threat of substitutes is lower for Airdri Ltd. in the US and Europe markets.
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 Threats of new entrants is higher for Airdri Ltd. because the products are having low
competition and they do not require cost to enter in US and Europe markets.
 The rivalry among competitors will be higher because there are few organisation s giving
products to customers and improving the quality.
M5 Evaluate various marketing approaches and competitor analysis and make recommendation.
Here are some marketing approaches which Airdrie can use in order to establish its brand
image in marketplace.
Product approach- In this approach focus is on the product that is a deal evaluation is
done the product and its need is been identified. On the bases of product quality and usage the
market is targeted in which company want to sell its product (Schlegelmilch, 2016).
Functional approach- With the use of this approach various marketing factors are been
identified by the company such as assembling, selling, transport and many other. After
identifying and analysing these factors a company can formulate effective and efficient strategy
which provide desire results.
Decision making approach- Decision making helps in providing the solutions to the
business problems. Decisions depends on the condition and various factors which are
controllable and uncontrollable in nature. The controllable factors includes quality, features,
prices, profit, etc. Whereas uncontrollable factors includes government polices, actions of
competitors and many other. This market approach provide grate support to Airdrie as on spot
decisions are made and helps in the smooth functioning of business in international marketplace.
Competitors strategy- It’s important for Airdrie to identify the strategy of its
competitors in order to find the differences in frequency, quality and content. After analysing the
strategies of competitors, company should formulate its business strategy and should not repeat
the mistake which is done by its competitors (Rust, 2020).
Check for changes in Sales- The end objective of the company is to sell its products.
The company should focus on organising campaigns and should measure the results that is how
the campaigns are affecting the customer behaviour. The company should put utmost efforts in
marketing its product in order to raise the sales and profit of company.
Use of questionnaires- This is the most effective and easy approach which company can
use in order to evaluate the effectiveness of its marketing strategy and techniques. By
communicating directly with its potential customers with the help of questionnaires it can know
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their opinion on the products and services of the company. As per their feedback they can make
changes in its products in order to provide good customer experience and satisfying them.
The marketing competitor analysis is done in order to identify and analyse the marketing
strategy, strengths and weaknesses of the competitors. By identifying the various factors of
competitors company can formulate better strategies and run its business in most effective and
efficient manner. Moreover this analysis helps in finding the next move of the competitors and
their methods and business strategy which they are using to attract customers (Perera and
Hewege, 2016).
From the above study it will be recommended for Airdrie to focus on Product approach as
the main motive of the company is to sell its products and provide great experience and
satisfaction to its customers.
D3 Make recommendation on how organisations should be structured to maximize the
opportunity in international marketplace.
 Airdrie is the organisation which manufactures its products according to the market
trends and preferences of its customers.
 They should typically use traditional structure in its business operations in order to
maximise its production and profits in the international marketplace.
 They should focus on adopting departmentalization as it provide benefit that is similar
tasks and activities are group together. Thus monitoring and controlling becomes simple
and if anything goes wrong corrective actions can be taken by the top authorities.
 In traditional structure employees are grouped according to their capabilities in function,
products, processes, customers and regions.
CONCLUSION
From the above study it has been concluded that proper market study and market analysis is
important for the organisation who is planning to enter in the international marketplace. There
are various factors which effect the business operations in international marketplace that are
competitors, taste and preferences of customers and rules and regulation of government. The
company should study and analyse all these factors and according develop the business plan and
strategy in order to get successful in the international marketplace. The company need to identify
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various marketing approach and should adopt the most effective one in order to obtain desire
results in international marketplace
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