Scope and Concepts of International Marketing

This report explores the scope and key concepts of international marketing, focusing on the case of Davison Canner, a UK-based food production company. It examines the rationale for willingness to market internationally and discusses various international marketing entry routes. The report also covers key criteria and selection process for entering international markets, as well as market entry strategies and their advantages and disadvantages.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Examine the scope and key concepts of international marketing.....................................1
P2. Explain the Rationale for willingness to market internationally and Various international
marketing entry routes............................................................................................................3
Task 2...............................................................................................................................................4
P3. Key criteria and selection process that the company should use when considering which
international market to enter...................................................................................................4
P4. Market entry strategies and their advantage and disadvantage........................................5
Task 3...............................................................................................................................................6
P5. Present a key argument in context of local & global marketing.....................................6
P6. Examination of pricing, product, promotion as well as distribution approaches.............8
Task 4...............................................................................................................................................9
P7. Global marketing approaches...........................................................................................9
P8. Domestic v/s global orientation along with methods to measure competitors.................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
International Marketing is marketing principles applicable in more than one
country, by the company’s expansion of business across the national boundaries. International
marketing is conducting business operations and activities internationally in organized manner.
Marketing play an important role in the current market to attract more and more customers
across the border companies need to expand there business internationally(Radulovich, Javalgi
and Scherer, 2018. Through international marketing companies easily provide information about
there products and services to the customers. This report is on ‘’Davison Canner’’ is the food
production company started over 40 years ago. There food and drinks available in more than 80
countries. Davison Canner food products include sticky toffee pudding, sticky chocolate
pudding, butter pudding, jams etc. Davison canner want to expand there business across Asian
countries, so manager of the company want to prepare a report to expand the business which
consist the strategies and plans related to the international market, difference between global and
local market, marketing strategies, marketing mix, recommendations for expansion etc. through
which operations are performed by analysing resources availability(Thussu, 2018). If there is any
risk in expansion, then it is important to plan strategy with which it is easy to expand.
Task 1
P1 Examine the scope and key concepts of international marketing
An introduction to the company
Davison Canner is the UK based company deals in food products started in 1974
this business owned by a family they provide good and best quality food items. They try to
utilize their resources by focus on customer needs and wants. Fruits are grow at company’s own
farm so they provide good quality products to there customers(Baier-Fuentes and et. al, 2019) .
They also expand their business in beverage sector they get funding from HSBC bank. They
provide wide variety of dessert to the bakery. They also diversifying their products range by
considering the requirement of the customers. Davison Canner new products attract the
customers and also provide growth and profitability to the company.
Define international marketing and its main differences to local marketing
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According to Muhklbacher, Helmuth, and Dahringer, 2006- International marketing is
applicable for marketing orientation and marketing capabilities to international business.
According to American Marketing Association ,- International marketing is global
process of planning and evaluating the conception, promotion, pricing, supply and distribution of
ideas ,activities goods and services to create exchanges that satisfy individual and companies
objectives and goals(Aswani and et. al, 2018)/ According to Warren J. Keegan, - International
marketing is the way of focusing the resources and objective of the companies on International
marketing opportunities and needs.
Davison canners managers want to expand their business in Asian countries, so it is
important to create positive image and also consider the values and belief of the company in the
mind of customers. They need to analyse the market to expand their business internationally.
Davison Canners advertisements have positive impact on customers which help in increasing
their sales. Manager of the company need to create some new business and marketing strategies
also need to focus on international market (Skudiene, Auruskeviciene and Sukeviciute, 2015 )
Difference
Local marketing also called neighbourhood marketing is the marketing strategy
target customers of local area and customers with in the boundaries. Conducting a business at
local level is easy as compare to international marketing. Local businesses focus on customers
those who are close to them. It is easy to get feedback from local customer for the companies and
this give an advantage to the companies make changes according to the customers (Vellas,
2016). Companies develop unique position in the local market and give competitive advantages.
Companies main focus is on customers’ requirements and needs(Beck, Chapman and Palmatier,
2015). Local and Neighbourhood marketing creates good brand image in the local market and
international marketing create brand image globally. In local marketing target market and
customers are local and available with in specific geographic boundaries and in international
marketing target customers and market is outside the country. In local marketing there is no
language issue but in international marketing language is a barrier to the companies. It is easy to
adopt or change customer demands in local marketing as compare to international marketing.
International marketing scope and key concept
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Davison Canners want to expand there business internationally in the Asian countries right
now they handle their business in local market of UK. To expand the business internationally
company, have to analyse the market and the scope of the international marketing with this
company get good advantage for expansion. Following steps shows scope of International
marketing for Davidson Canners.
Imports – Importing means purchase product and raw material from another country. Some time
companies buy products at low cost from another countries and resale the product in domestic
market. Manger of Davison Canners focus on importing process to expand their business
effectively.Opportunity of this method is that it will assist in grabbing market share whereas
challenge faced bythe organisation is that there is huge competition at the marketplace which
affect the whole process in a negative manner.
Exports - Companies export their products in international market to generate high
amount of revenue(Surugiu and Surugiu, 2015). Exporting also help the Davison Canners to
expand their business in Asian countries.Generate huge profitability is the opportunity gain by
companies while adopting this method whereas challenges faced by the company is that demands
of customers not getting fulfilled by the products offered by them which influences their overall
image in a negative way.
Contractual Agreement – When company want to expand their business, they face
many problems contractual agreement with other companies help the company in the expansion
of the business internationally. Contractual agreement help Davison Canners diversify there
business internationally.Opportunity is that it help in maintaining positive image of the company
at the new marketplace but on the other hand challenge is that it needs to share profitability and
revenue with the contracted organization.
International Business - International business require huge amount for expansion. If company
is willing and capable to expand there business internationally then international business is the
good option. Davison canner can also operate its business internationally as a single unit(Rosson
and Ford, 2016) .
P2. Explain the Rationale for willingness to market internationally and Various international
marketing entry routes
Davison Canners is located in UK, the company deals in food items and provide best
quality of food products from their own farm. Company also get awards because of their good
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quality food and they create good brand image in their local market. Now company wants to
operate their business internationally in Asian countries. For this company have to analyse and
evaluate the international market, and for this company also need to create proper market
strategies. Some good strategies help in communication and also satisfy shareholders, partners,
and customers. This increase the sales and profitability of Davison Canner when there manager
focus on both local and international market. Manager of Davison Canner is also focus on
maintaining the quality of food items internationally same as per their local market.
Entering in the international market, It has many benefits and advantages such as increase in the
sales and profitability, diversification of the business, expand the business from local to global
level, increase competition etc. There are various opportunities for Davison Canner, international
business creates positive impact on their customer and status. This also increase the market share
of the company( Morschett, Schramm-Klein and Zentes, 2015). Company's international
marketing also provide benefits to the countries and there political parties, like create good
relation between countries, provides employment opportunities, create scope for other business.
Different entry routes and recommended any one
To get entered in the international market there is need of some path or route through
which Davison Canners entered in the Asian countries with same belief and values. To maintain
the good image in the new market company have to understand the culture and ethics of the
country. Company can enter in international market in two ways, direct and indirect route.
Direct route:- This is a direct way by which managers of Davison Canner can
communicate and make awareness among their customers about products and services they
offers. By using best possible way of personal sales, sample product, advertisement at local level
etc. These are the ways which help the company to communicate with their customer and also
examine the quality of product(Michaelidou and et. al., 2015) .
Indirect route:- In indirect route there is interference of third party, this party
communicate the information of product and services to the customer of the company and
charge commission for the sales.
From the both routes direct and indirect we said that direct route is the best route because there is
a direct contact between the customers and organization, there is no third-party commission
charge in direct route so this is an easy way for the company to operate business internationally.
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Task 2
P3. Key criteria and selection process that the company should use when considering which
international market to enter
Davison Canner want to expand their business in international market but it is not easy due
to dynamic external environment, so there is need to analysis and evaluate the market to enter in
international market. Managers of Davison Canner have to work in positive and effective
manner. Selection of international market criteria are as follow
Good infrastructure- To lunch business in Asian countries, manager's of Davison Canner need
to create proper and good infrastructure with the help of suitable location and area, proper
planning(Kotler and et. al., 2018).
.
Availability of resources- company also need to consider the availability of resources like
labour, raw material, technology, financial resources, etc.
Legal Norms- legal rules and regular of the country also effect the business so the managers of
the Davison Canner required to fulfil all the legal norms to create good brand image. selection
process for particular geographical region discussed as under-
Setting objective and aims - setting objective and aims is the first priority of the managers of
Davison Canner properly operate business in international market.
Analyse the best option - It is necessary to analyse the each and every aspect of the business
and select better option(Ghauri and et. al., 2016) .
Selection of best destination - Managers of Davison Canner need to examine the situation
which is suitable for the expansion of the business, need to choose best destination.
Testing - After the selection of the best destination there is need to test the option and
choose the best option(Jean and et. al., 2016).
Lunching of enterprise- After passing through all the steps company can easily lunch their
business in Asian countries
P4. Market entry strategies and their advantage and disadvantage
Managers of Davison Canner need to analyse market Strategies and try to evaluate the easy way
to entered in the new market(Choi and Yeniyurt, 2015). There are various ways like, licensing,
franchising, exporting, partnership, joint ventures etc. Some of the strategies are-
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Joint Ventures - Company Davison Canner get entered in international market with help of joint
venture this is an agreement between one or more companies which help in establishment of the
third company separate from the "parent companies".
Advantages: One of the biggest advantage of joint venture for the company is that their
goodwill and reputation increases at the competitive marketplace.
Apart from this, it has also been identified that by adopting joint venture strategy company will
be able to acquire better resources which aid them in producing high quality goods and services.
Disadvantages: Disadvantages for the company related to joint venture is that management team
of the company need to conduct lot of research and planning which requires lot of funds. Along
with this, due to different cultural background and clashes in culture create negative impact on
the functioning of business operations.
Exporting - Exporting is the easy way for Davison Canner to entering in foreign market.
Exporting allow Davison Canner to manufacture and sale their product in international market
and obtain economic of scale.
Advantages:With the help of adopting exporting strategy company will be able to grab
opportunities available at international marketplace which increases their market share.
Furthermore, another advantage is that exporting increases goodwill which increases the the
profitability of the company at competitive environment.
Disadvantages: One of the biggest disadvantage is related to the financial risk which might
affect the overall performance of the company In addition to this, because of cultural differences
company may face adverse effects on the functioning of the company.
Withthe help of above mentioned investigation, it has been identified that if an
organisation wants to expand their functionality at global level, there are different types of
strategies which can be adopted by them. Company also need to evaluate and create some good
market strategies in order to increase the sales and profitability of the companies (Richter and et.
al., 2016). It has been said that joint venture is one of the most beneficial strategy adopted by an
organization as it help gaining reputation at new marketplace as well as get new resources in an
effective manner. But on the other hand limitation of the strategy is that it requires sharing of
profit.
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Task 3
P5. Present a key argument in context of local & global marketing
BASIS LOCAL MARKETING GLOBAL MARKETING
Size of
business
operations
It refers to the ways with the help of
which business entity can perform
their work in a particular nation.
But on the other hand, it is the case
where without any sort of trade
barriers, business operations can be
done.
Assessment of
Risk
As compared to international or
global marketing, it is compared to
be less risky(Surugiu and Surugiu,
2015).
In this context, risk is quite high as the
trends and needs of customers are
dynamic in nature which need to be
considered by the managers of the
company.
Financial
Resources
In case of local marketing, needs and
requirement of financial resources
are less in order to perform their
business operations.
Whereas, in context of global
marketing need of financial resources
is quite high as large number of
customers are linked with the company
and their needs are quite different.
Complexity of
procedures
In reference to local market,
managers of Davison Cannernot face
any sort of complexity in their
business operations as they have
enough knowledge about the current
trends and requirements of
customers.
Whereas, in case of international
marketing, sometimes there are some
complexities as workers do not have
enough knowledge about the changing
needs of customers(Vellas, 2016).
Consumer
perception
Perception of customers are quite
positive against the products offered
by Davison Canner as they provide
high quality services to them which
will satisfy their needs and wants.
In reference to international market,
consumer perception are different as
there are ample number of
organisation dealing in the same
sector.
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Example In context of marketing at the market
place of UK, management team of
Davison Canner adopt TV
advertisements, hoarding, newspaper
and many other sources in order to
make consumer aware about the
offerings (Aswani and et. al, 2018).
Whereas in case of international
marketing, sponsorship, marketing
campaigning are needed which will aid
in enhancing their knowledge.
Key arguments in context of local against global marketing
It has been observed that there is a huge difference in the working style of both global as
well as local market due to the different scope of working. In case of international market, If
there is any kind of issue arises it becomes tough in order to deal as they have less amount of
information and knowledge but in case of national or domestic level, it becomes easy to deal
with such situation. According to the view point of some authors, it has been observed that the
scope in international marketing is huge but similarly risk as well as fund requirement increases
automatically. Therefore, it is very essential for the management team of the company to
examine and evaluate the whole market situation in an effective manner. At international or
global market, it is very required to have proper funds, resources as well as infrastructure which
will assist in doing business operations in an effective manner.
It has also been said that according to some people, doing business operations in national
or domestic market is quite beneficial as there are less competition and risk associated with this.
Also managers of Davison Canner produce goods and services which will satisfy the demands of
consumer with the help of analysing as well as understanding their needs and wants (Baier-
Fuentes and et. al, 2019). Furthermore, in case of global market, it is observed that the
possibilities of adverseinfluenceare quite low as they have full knowledge about the needs of
customers, legal requirements as well as about the ethical factors. Along with this, according to
some authors it has been said that in case of national market, funds can easily be enhanced which
will help in smooth running of the business operations. This as a result increases the overall sales
as well as profitability of the company at the marketplace.
P6. Examination of pricing, product, promotion as well as distribution approaches
When entering into the new market place, it is very essential to make all the business
operations in an effective as well as efficient manner so that positive results will be produced.
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For this, it is very essential to examine the changes taken place at both local as well as global
level so that effective strategies will be developed(Radulovich, Javalgi and Scherer, 2018). In
this context, price, product, promotion and place are going to be discussed as follows in context
of both international as well as local level:
Element London, UK Global Markets (Asian Countries)
PRODUCT It has been said that, Davison
Canner is an organisation which
deals in fruits, beverages, jams.
Also they have their own farms so
the quality of fruits is high as they
use fresh fruits to make jam and
beverages.
Along with this, managers of the
company decide to operate their
business functions in Asian countries,
by offering particular products such
as fruit juices and jams.
PRICE In context of local marketplace,
pricing strategy of the company at
UK are competitive as there are
various other business
organisations deals in same sector.
On the other hand, in case of global
market, strategy adopted by them is
price skimming strategy which will
aid them in developing their goodwill
at the competitive marketplace.
PROMOTION In reference to domestic market, it
has been said that Davison Canner
can easily promote their goods and
services by using TV
advertisement, personal marketing,
hoarding and many more.
Whereas, in relation with global
market of Asian nations, promotional
tools used by company are brand
ambassadors, sponsorship and many
other tools (Thussu, 2018).
DISTRIBUTION In context of domestic market, it is
said that distribution of goods and
services can be done with the aid
of physical outlets and online
sources within the market of UK.
If talking about international market,
aid fairs, stalls at different
exhibitions are used in order to create
about the products and services
offered by them.
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Task 4
P7. Global marketing approaches
Some effective marketing approaches are going to be discussed which is adopted by
Davison Canner:
Multinational: This approach refers to the approach in which business entity have their
operations in different other countries where they perform on independent basis. Therefore, there
is no such interrelationship between two outlets(Skudiene, Auruskeviciene and Sukeviciute,
2015). For instance, Burger King. Therefore, these organisations have their operations in other
countries on large number.
Transnational: Another approach is transnational according to which it becomes tough
but sometimes necessary to understand but on the other hand need to operate in some locations.
Rural area are the major challenges where business operations need to be conducted whether it is
possible or not. For example, CADBURY.
Global: According to this approach, business organisation performs their business
functions in different nations but with single norms. This will help in providing uniformity to the
customers in their offering. Example is TESCO PLC.
Meta nation: The Meta-Nation define that there are different channels for communication
and interactions. It is a form of interaction where one organisation or agency of sovereign nation
can communicate with other another sovereign country agency.
It has been recommended to the organisation who conduct their business operations at
international level that they must consider all the elements and factors before starting business
functions so that they can grab opportunities available at international marketplace. Along with
this, they must examine the needs and requirements of customers so they can satisfy their
requirements and maintain their position at new marketplace.
P8. Domestic v/s global orientation along with methods to measure competitors
Domestic orientationrefers to the mentality in mind of managers of the company
according to which if product is well known is local market is going to famous at international
market also. It can affect the overall sales at new marketplace as there is no uniqueness and
innovative ideas incorporated by the managers of Davison Canner.
Implication:
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With this attitude, there is a connectionbetween both local s well as global market, so it
becomes easy to access it both the market area.
Methods to assess competitors:
It refers to the method with the help of which business functions are not getting affected
because of any sort of competitors as mangers thinks they does not have enough knowledge
about the offerings (Beck, Chapman and Palmatier, 2015).
International orientationis the another way with the aid of which staff members can
easily examine the difference among domestic as well as global market, positive and adequate
manner. it is very essential to examine the whole market in an effective way before doing any
sort of operations.
Implication:
With the assistance of international orientation, it has been observed that there will be
more advantages to Davison Canner in order to conduct their business functions in an
appropriate manner(Jean and et. al., 2016).
Ways to assess competitors:
As a managers of Davison Canner it is required to focus on the changes and developing
policies according to the changing environment. Also there is high threat to the Davison Canner
from their rivalry firms therefore, it is necessary for them to examine the market.
Ansoff matrix:
Ansoff matrix is used by organisation in order to provide direction for future success as
well as growth of the company. Therefore the four quadrants of Ansoff matrix which is going to
be mentioned below:
Market Penetration: Herein, the organisation focuses on providing existing product in
existing Marketplace in order to promoting their product in front of customer at market place.
They provide superior quality food for its customer in order to satisfy them. It increases sales as
well as profitability level in future period of time.
Product development: In this stage the innovative product is sold in existing market.
Therefore it is necessary for company to introduce innovative product for its customer for
retaining them for a longer period of time. They provide healthy food to its customers such as
salad, vegetable sandwich to its user.
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Market development: In this level the existing product is sold in the new market.
Therefore it is necessary for the company to adopt different promotional techniques such as
advertising and sales promotion as well as publicity in order to promote their product in the new
market.
Diversification: This is a very risky strategy in which innovative product is sold in the
new market. Therefore it is not easy for manager to promote innovative product in new market
place. It is the risky stage but give higher rate of return.
From the above mentioned analysis it has been observed that the organisation adopt
diversification strategy in order to provide innovative product in new market.
Conclusion & recommendations on the basis of marketing mix and structure of
organisation
After doing the whole analysis, there are some recommendations given to the higher
authorities of Davison Cannerthat they must understand about various policies and strategies
needs to be adopted by them while doing business expansion. Alongwith this it has also been
examined that there is a huge difference in the marketing style among both domestic as well as
global level. It has also been suggested that higher authorities need to conduct market research so
that they can understand the requirement of individuals in both domestic as well as global
marketing (Richter and et. al., 2016). Furthermore, ithas also been recommended to the
managementteam that in order to promote goods at international marketplace, fairs, stalls,
sponsorship, brand ambassadors are adopted by the managers. Along with this, in context of
pricing strategy it has been recommended to the management team that skimming pricing
strategy needs to be adopted by the managers in foreign market.
CONCLUSION
With the help of above stated information, it has been said that there are ample number of
marketing strategy in context of international as compared to domestic level. for doing business
expansion there are various types of route where direct route has been used by the managers of
the company. In addition to this, there are some changes in pricing, promotional as well as
distribution method in every region or geographical area. Therefore, it is very essential to plan
some policies according to the market needs so that positive outcome will be produced in an
effective and appropriate manner. furthermore, it is also very essential for the management team
12

to examine all the current trends and perception of customers while doing business expansion at
international marketplace so they will be able to satisfy the needs and wants of customers.
13

REFERENCES
Books and Journals
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development (R&D), marketing, and manufacturing alliance formations. International
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Richter, N. F. and et. al., 2016. A critical look at the use of SEM in international business
research. International Marketing Review. 33(3). pp.376-404.
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Kotler, P. and et. al., 2018. Marketing management: an Asian perspective. Pearson.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Aswani, R. and et. al, 2018. Search engine marketing is not all gold: Insights from Twitter and
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