Scope and Key Concepts of International Marketing

This document provides an overview of the scope and key concepts of international marketing, including international trade, international business, and globalization. It discusses the rationale for international marketing and describes different routes to market. The document also evaluates the challenges and opportunities of international marketing and provides insights into the selection process for entering international markets. Additionally, it explains market entry strategies with examples and explores the differences in the elements of the marketing mix in the context of international markets. Finally, it discusses the circumstances in which organizations need to adapt to a global or local approach.

International
Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Scope and key concepts of international marketing..............................................................3
P2 Rationale for international marketing and describing different routes to market..................4
M1 Evaluating challenge and opportunities of IM.....................................................................4
P3 Selection process which a firm should use while enter in International market....................5
P4 Explaining market entre strategy with examples...................................................................5
P5 Overview of key elements in global vs local debate..............................................................7
P6 The way elements of marketing mix differ in context of international market.....................8
M3 Context and circumstances in which organization needs to adapt to global or local
approach......................................................................................................................................9
M4 The way Tesco have adapted to marketing mix in different international market...............9
D2 Critical evaluation of range of marketing mix is applied in international context................9
P7 Various international marketing approaches that could be used by company.....................10
P8 Comparison of home and international orientation, ways to outline competitors outlining
implications of each approach...................................................................................................10
M5 Marketing approaches and competitors analysis in relation to company and
recommendations......................................................................................................................11
D3 Recommendations on structural maximisation and opportunities in international context 11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing (IM) is all about trading of goods and services in different
countries. With the help of this, new opportunities are develop for business which provides
invaluable relationship with a business. The chosen firm for this report is Tesco which is top
multinational firm within UK and offer range of services to their customers. Study will help
to understand how marketing contributes to business strategies and evaluate different entry to
a selection of international markets along with success factor. Moreover, report explains how
product, price and promotional approach is differ from international context and then
evaluate different international marketing approach which can be adopt by Tesco.
P1 Scope and key concepts of international marketing
Concepts:
 International trade: It is exchange of capital, services at global borders and trade
represents some share of GDP. Hence, international trade allow countries to expand
their business by offering good range of product at international level (Cateora and
et.al.,2020).
 International business: It refers to a trade of goods, service or technology across
national borders which assist to develop good relationship between two countries and
it is also known as globalization.
Scope:
 Ethnocentric: It is the belief that one’s own company knows its best how to do
things. Such as every country have their own cultures and it is vary from nation to
nation (Eteokleous,Leonidou and Katsikeas, 2016).
 Regio-centric: Through this manager select candidate from different country with an
aim that they work closely with host country and attract range of customers.
 Geocentric: Through this, company view entire world as a single market and as a
result, develops standardized marketing mix. Hence, it assist to gain more profit.
Globalization: The movement or exchanges of goods and services through the world is
known as globalization. It promotes and increase interactions between various religions and
population which contribute to IM (Amankwah-Amoah, Boso and Debrah, 2018).

Domestic Marketing: It is the supply and demand goods within particular country. Hence it is
restricted to local boundaries and serve limited number of customers.
Technology of IM: It change the perception of doing business and this in turn assist to
improve the productivity and profitability of a firm. Through advance technology, company
perform trade and offer product through online platform with an aim to sustain brand image
at global market.
P2 Rationale for international marketing and describing different routes to market
Reason of IM:
 Improving profit is the main reason of doing international marketing. Such that
distributing product internationally will assist to increase sales and raise customer
base too which strengthen revenue(Opportunities for international marketing, 2020).
 Diversifying business is another reason which encourage Tesco to perform IM. Such
that company start enhancing innovation and develop different solution to minimize
risk.
 Increase growth rate and smoothing out business cycle is another rationale for IM and
this in turn assist to larger the market size and attract customer towards it.
Various routes:
 Exporting: It is define as a sale of product and service in foreign countries indirectly
or directly. For example, Tesco sell its products to India through direct exporting with
an aim to increase sales.
 Franchising: It is an agreement where franchisor offer some rights to another party in
which they may expand their business by sell the product and use brand name. This in
turn assist to increase the growth of business and attract range if customers (Pegan,
Vianelli and de Luca, 2020).
 Joint venture:It is an agreement which can be used by Tesco where two or more
parties agree to use their resources with a purpose to accomplish specific task. In this
profit and loss are equally distributed to each other.
M1 Evaluating challenge and opportunities of IM
Lack of local knowledge is consider biggest challenge of IM because marketing
works better when company have experts that helps to minimize cultural difference. While
competition is another challenge that affect the marketing in opposite manner. It is so because

company perform best to stay ahead in competition but due to lack of resources, Tesco did
not beat in competition (Hult and et.al., 2018). However it has been critically evaluated that
there are opportunities which a firm is also gain due to international marketing. Such that it
assist to increase the brand awareness through which most of the customers are attracted
towards it. On the other hand, company is able to attract new pool which cause positive
impact upon business profitability. Apart from this another opportunity which Tesco gain
through IM is increase base of customers who directly increase the sales as well as profit
margin.
P3 Selection process which a firm should use while enter in International market
While entering into new market, Tesco should consider different selection process
that assist to examine which market is best. Some of the criteria are as mention below:
 Market analysis: The basic assessment which Tesco should perform and it include the
profit option, customer segments and their buying pattern. Hence, with the help of
market analysis company examine the trend of country and according to that offer the
product to customers.
 Competition analysis: It also identifies competitor and evaluate their strategies by
examining the strength and weakness. With the help of this, Tesco gathered
competitive information which in turn assist firm to make decision accordingly
(Katsikeas, Leonidou and Zeriti, 2019).
 Local culture: In order to establish the brand image at global level, company has to
determine the local culture, belief of another country in which it wants to enter. Thus,
it will assist to examine the culture and consumer habit so that, Tesco offer the
products accordingly.
 Legislation barrier:Every country have their own laws and rules which have to be
followed by the firm in order to enter into new market. Such that the tax rate and
legislation are vary from nation to nation, that is why, before entering into new
market, company has to measure this criteria (Paul and Mas, 2019).
P4 Explaining market entre strategy with examples
Market entre strategy is a planned distribution of a company who will offer product
and service to new target market. In the same way, Tesco is also operating its unit at global
level and uses range of market entry modes by considering both pros and cons.

Exporting: It is market entering strategy in which company plans to directly export products
and services to different parts of countries in order to expand its international operation.
Advantages
It is less risky strategy as low financial investment is used to enter into new market in order to
earn profit (Stojković, Stoykovaand Geurts, 2016).
Disadvantages
Trade and tariff imposed by government lead to additional cost or increase prices of products
and services of firm.
Licensing: It is a sophisticated management in which organization give right to another firm
to use its products or services thus the business that use name, brand image of other firm need
to pay a certain amount of profit as commission or royalty.
Advantages
Licensing partners have more knowledge about condition of local market thus company can
easily expand its global operation.
Disadvantages
Due to incompetence of licensing partners, brand image of firm can be destroyed or harmed
at the same time it is difficult to have complete control over business that are happening
overseas.
Acquisition: In this strategy company acquire control over another local business by paying
certain amount of capital thus it is now responsible for taking all decision of firm and bearing
its all losses and profit.
Advantages
Company can quickly expand due to existing consumer’s base, infrastructure and
distributional channel thus less effort, times need to be wastage to grow operation in new
market (Khan, Khan and Mahmud, 2016).
Disadvantages
Chance of culture clashes more in case of acquisitions as both firm abide to different
practices and culture so there is high problem related to integrity of system and procedure.

Greenfield investment: It is market entering strategies in which organization make
investment of capital in order to buy land, several manufacturing facilities, hire labor and
perform different function as basis of foreign market. Thus, it required higher involvement of
company, its capital and more risk to enter into new market.
Advantages
Investors have more control over business operation or decision such as they are only
responsible for setting price of products or strategy that could yield fruitful results.
Disadvantages
The biggest disadvantage is that it involves huge amount of financial risk that can adversely
impact on sustainability of existing business.
Thus, all such are alternative market entering options that could be used by Tesco to grow
and expand its market share in international market. Form the above several alternatives
Tesco can make use of franchise or licensing model to enter into new market for attaining its
objectives (Mathews and et.al.,2016).
P5 Overview of key elements in global vs local debate
There is huge differences between key elements of global and local market, as in
global market there are large number of competitors with varieties of products and services so
that they can meet customers needs. Like:
Business operation: It can be said that Tesco in local market such as United kingdom have
more market share that is around 27% but it have limited market or customers in global
environment. This is due to more competition level in international market as compared to
local market in which firm already operates its business.
Capital requirements: Tesco require more amount of capital or finance in promoting its
business internationally as compared to local as there are huge enterprise with varieties of
products and services in global market (Alon, Chen and Mandolfo, 2019).
Government interventions: Tesco at international level have to face more government
interventions as each country have its set of rules and regulation that needs to abide by firms
to operates their business. On the other hand, there are limited restrictions of government of
UK on Tesco in local market so it can easily grow its business.

Nature of customers: In international market, there are number of individuals belong to
different culture, languages, beliefs, values, taste and preferences or they are more diverse
thus it is difficult for Tesco marketing manager to use same strategies to influences all
customers. Whereas, in local market i.e in United Kingdom people have similar culture and
values so manager can easily motivate them to be part of organization.
Risk factor: It can be argument that associated risk in global market is much higher than
local market as company needs to invest huge amount of capital to enter into new market and
cater needs of different individuals. Therefore, local market is less risky than global market as
there are drastic and sudden changes in external environment due to number of factors may
be technological development, government policies or customers preferences (Bala and
Verma, 2018).
P6 The way elements of marketing mix differ in context of international market
Basis United kingdom India
Products Tesco have varieties of
products and services in
united kingdom.
On other hand there are
limited products or services
in India of Tesco.
Place There are numbers of offline
stores of United kingdom or
its biggest supermarket.
Tesco stores are limited in
India or present in few cities
only.
Price It has set all types of price
range for different kind’s
people so that they choose as
per their needs (Hirshberg
and Shoham, 2017).
Low pricing strategy has
been chosen by Tesco to
operates its business in India.
Promotion Advertisement, club card
services are some method
that are used by Tesco to
promote products in local
market.
Social media and strong
brand image helped in
promotion of company.
Physical distribution Strong distribution channel
across UK.
Limited warehouse and
supply chain in India.

People It has maximum number of
employees in UK.
There are few individual that
are working in India Tesco
stores.
Process Tesco in UK have standard
process and procedure to
deliver services to customers.
Systematic process has
contributed in effective
delivery of services.
operations.
M3 Context and circumstances in which organization needs to adapt to global or local
approach
It can be illustrated from above analysis that company such as Tesco needs to changes
its strategy and operation as per circumstances, situation of particular country. For examples:
India is underdeveloped country so there are number of people that are having low disposable
income and are unemployed. So, company it has to use low pricing strategies to attract
maximum number of individuals to select Tesco. Whereas in UK or other developed
countries can emphasis on quality of products rather than prices to fulfil customer’s
expectancy.
M4 The way Tesco have adapted to marketing mix in different international market
From the above analysis and discussion, it can be stated that company like Tesco
have effectively adapted to marketing mix strategies in international market such as it have
changes it prices, range of products and places so that customers can easily approach and
fulfill their needs and wants (Mathews and et.al., 2016). Use of marketing mix strategies
have contributed in adding more and more customers within organization and enhancing
overall profitability.
D2 Critical evaluation of range of marketing mix is applied in international context
It can be critically evaluated and analyzed that in international market there are
number of tremendous changes such as quick development in technology, changes in
customers taste and preferences and government policies. So, company has to adapt to all
such factors in order to grow and sustain business for longer time frame in international
market.

P7 Various international marketing approaches that could be used by company
There are number of international marketing approaches that can be used by Tesco to
expand its operation in new countries such as B2B, centralized and decentralization of
activities, outbound marketing, inbound marketing and rules and regulation. Therefore,
different approaches which could be used by Tesco to attain its objectives can be explained
below:
B2B: It is business model in which one company sells its products and services to another
firm for resell to end users and earn specific amount of profit margin. Tesco by contracting
with local firm in international market can sells its products or services to them so that they
can be further distributed to number of customers that are living in different parts of world.
Inbound marketing: It is marketing approach in which firms itself initiate or start an
conversation, send message or information to number of people that are living in society. For
examples advertisements in radio, newspaper and social media or magazines therefore Tesco
can make use of inbound marketing strategy to grow its business in international market
(Agarwal and Wu, 2018).
Outbound marketing: It is just opposite of inbound marketing as instead of company,
customers find particular organization that can fulfill their needs and requirements. Now- a
day’s most of the enterprises are making use of outbound marketing such as email, content
marketing and blogging. Thus, customers by seeing content or email are motivated to review
products or services of company such as Tesco to fulfill their respective requirements.
Centralized and decentralize marketing activities: Centralized marketing activities state
that single strategies would be applied to all countries while in decentralization company will
adapt to different strategies as per condition and situations. Tesco in order to enhance its
market share or presences in international market can make use of decentralized marketing
activities by changing its strategies or set of action as per condition of economy of particular
country. So, those maximum numbers of individuals are motivated to be part of firm rather
than other enterprise in market (Pham, Le Monkhouse and Barnes, 2017).
P8 Comparison of home and international orientation, ways to outline competitors outlining
implications of each approach
The home orientation can be understood as expansion of products and services taken
for international markets domains expansion in order to expand and utilise excess production
worked on in domestic market. Primary focus is on needs of local market and for gaining

effective business strategies within accordance to already established new functional
expertise and competitive market arenas. The marketing mix as wells as production of
products is done in accordance with best domestic target consumers requirements and also
towards wide developing new growth goals. Whereas the international market orientation is
defines as intensity of international dynamic connected enterprise goodwill horizons, where
tesco is progressively heading for gaining productive goodwill within longer time run. The
presence of trade are focused on imports, exports and both of goods, services where
investments are in both form inward and outward along with degree of influence with high
diverse goals standards. Controls over out across border business scenarios are more and also
there is wide productive determinants ranging on larger evocative goals and productive
scenarios (Cateora, Gill and Graham, 2020).
The focus within international orientation is towards bringing on varied new
innovative diversity among fundamental goals, scenarios for generating faster marketing
avenues within global levels and also higher revenue goals. Tesco is one of the best retail
industry which has strong presence within international scope segments and also has been
gaining productive goodwill among consumers due to best products services. Competitors
outline implications of international approach by focusing on fact that customers reach is
expanded into large domains and also there is wide diversity among new scenarios. Whereas
by working with home orientation the companies are unable to yield larger target consumers
and also the factored on productivity goals are limited for company to work towards
M5 Marketing approaches and competitors analysis in relation to company and
recommendations
The functional decision making marketing approach is one of the best innovative
approach where Tesco focuses on decisions by competitor’s analysis and strategic
management, where assessment of strengths and weakness within current and potential
competitors can be analysed. By using this approach with strategic planning integration and
active usage of new functional domains expertise at Tesco, company will be able to reach
larger profits and also sustained strong consumer goodwill.
D3 Recommendations on structural maximisation and opportunities in international context
The structural maximisation with high working operational innovation will be able to
pertain new working growth goals and also Tesco needs to build special expertise, where

there is smart productive functional innovation demanded and also employees shall be
focusing towards innovative services (Kotler, Harker and Brennan, 2018).
CONCLUSION
The report has concluded international marketing concepts and rationale within Tesco
at retail industry and also to functionally bring one new paradigms of innovation and also key
selection of best marketing approaches. The report has also concluded various new
innovative strategies and also for profound larger view, where international market scope has
widely analysed. Tesco has found to be working with best working synergy of large
innovation and productive new functional metrics and also to pertain focus on bringing new
productive service growth.

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<http://choosewashingtonstate.com/wp-content/uploads/2013/06/10_Reasons_to_go_I
nternational.pdf >.