Scope and Concepts of International Marketing

This document provides an overview of the scope and concepts of international marketing. It explains the various routes to enter foreign markets and discusses the key criteria and selection process for choosing which market to enter. It also explores the global versus local debate in international marketing.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
Scope and concepts of international marketing...........................................................................3
Explain and describe the various routes to enter in the foreign markets:....................................5
LO2..................................................................................................................................................6
Explaining the key criteria and selection process which are used while choosing which market
to enter:........................................................................................................................................6
Describing with examples the different market entry strategies, including advantages and
disadvantages of each...................................................................................................................7
LO3..................................................................................................................................................9
Give an overview of the key arguments in global versus local debate:.......................................9
Price, Product, Promotional and distribution approach varies in international context.............10
LO4................................................................................................................................................12
Approaches in international marketing which client can adopt.................................................12
Comparison between home and international orientation................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
International Marketing refers as performance of activities of business which is designed
to price, plan, promote and flow of goods and services to customers at international level. The
objective is to earn higher profitability through various geographical locations. During
international expansion company firstly overview the market conditions of that country in which
they want to expand their business. These are politics, competition, law, technology, customer
behavior etc.
The report will cover analysis in which scope and concepts of international marketing
will be explained. It will evaluate the rationality for the market on international level and also
describes different routes for entering the market. Then report will determine selection process
that can be use while entering into international market. Various marketing strategies will be
explained along with its advantages and disadvantages. Argument will be done on the topic of
Global versus local debate. The study will investigate marketing mix approach that varies while
doing business internationally. Furthermore, it will analysis and explain different marketing
approaches that can adopt by the client. Lastly, comparison will be done between international
orientation and residence in order to provide ways to do assessment of competitors.
MAIN BODY
LO1
Scope and concepts of international marketing
Overview of company (Brakes)
The Study is based on Brakes. This is previously known as Brake Bros. The company is
engaged in the business of food and distribution. It supplies food, drinks and mainly catering
products in UK. The firm has more than twenty delivery centers, it distributes contract logistical
and wholesale services across UK. The company was founded on 1958, the CEO is Hugo
Mahoney. The headquarters are situated in Ashford and Kent in United Kingdom. The company

is comprising of various brands and businesses such as Brakes, Prime meats, Country choice,
Catering equipment and Woodward Foodservice.
Concept
As per the view point of it is said that International marketing can be refer as presenting
the goods and services to the rest of work in order to gain the profits from international
community. It is the application of principles of marketing to explore more countries.
Nature or international marketing
 Broader market segment is available to the companies. It is not restricted to domestic
population.
 There is involvement of set of uncontrollable variables. In domestic marketing the firm
deals with only one set.
 There is intense competition while doing business at international level.
 International marketing also requires wider competence and special skills.
 It involves high risk for the business and has to go through many challenges.
 Scope of international marketing
 Due to globalization the scope for international marketing has not limited today. For
doing global marketing here are the following scopes.
Imports - It is the easiest way to do international marketing. In this the firm imports from
other country and sale it to domestic market. This can be possible when there is demand in
domestic market. Localization of product will be done depending on needs of the marketplace
(De Nisco, Papadopoulos and Elliot, 2017). Business generally purchases the products from
outsiders in order to resale it to potential customers. Sometime import is done for improving
existing product line for putting up solutions in their organization.
Exports - In this the company export its finalized product into international market. It can
be their own franchises in international market where they sale their products to localities in

order to generate high revenues. Sometimes semi-finished goods are also exported to other
countries for increasing the brand value of the company. It helps to expand reach of the
companies.
Contractual Agreement- The Company can make contractual agreement with others in
international marketing. The agreements can be licensing, technical assistance and co-
production. Licensing can be done to collaborate with other international companies. This
includes agreement such as patents, trademarks and secrets of brand name. Fee is being charged
initially for this but once the business starts running it will automatically have covered.
Contract Manufacturing - The large company's generally put emphasis on core activities
and doesn't want to give extra efforts and cost on non-core activities. Thus, it gives a contractual
agreement to other firm so that they can focus on the core activities (Festa, Rossi and Situm,
2020). The company whom with contract is being made is responsible for assembling product
marketing.
Joint Venturing - It is the collaboration of two associations that collaborate for a period
of time for a specific purpose. This association further more grows and becomes a individual
unit. The new firm works under the parent companies but they have different objectives. The
profits and losses of the new company are equally shares between both. Thus, it raises scope for
international marketing.
Explain and describe the various routes to enter in the foreign markets:
Direct Exporting - It is one of the direct and fastest ways to enter the foreign market or it
is the shortest route to enter the foreign market. In direct exporting one business unit in the home
country establishes relationship with foreign business units by means of, direct exporting the
necessary goods and services which are required for their production process, from home country
the foreign country. By this method a firm will be able to free from the restrictions of legal and
political boundaries as the company is only responsible for unexpected losses.
Licensing and franchising - Licensing is an international legal agreement which allow
the firms exclusive or nonexclusive to enter in the market for a specific product and a specific
period of time (Oyewole, 2018). Franchising it is a system which allows the owner of the firm to
be semi-independent business owners with a specific and identified trademark, patent and

copyright. This system is only for specific period of time. This method also enables the company
to enjoy the benefits of low cost of production and cheaper inputs will be available as there is a
legal relation which is so promoted by the governments of almost all countries.
Joint Ventures - It is one of the most preferred routes of foreign entry in which two
international business entities joins together, who don't share their mind, brand and tagline but
accepts the agreement of collaborating with the other company to form a new business entity.
The control of the ownership of this new firm lies between both the parties on the basis of the
amount of money invested by them in the new company. The partnership of ownership frees the
half tension of loss from each party and also this is the only route which allows collaboration of
more than two firms.
The Brakes Company will choose the Licensing and Franchising bas this will be the most
suitable options for the company, in this company will be able to expand his business with least
number of hurdle and a high amount of profit. Also the company doesn't need to face political
band legal frontiers. Also it will be easier for the company to run its business with almost all
favorable points. The benefits of this route will be more in comparison to other two.
LO2
Explaining the key criteria and selection process which are used while choosing which market to
enter:
Step- 1 Identifying Foreign Markets:
Identification and selection of a set of markets is the first stage in to enter the foreign
markets. Before entering into foreign markets a firm need to identify and analyze each market to
choose the one with least negative points accordingly (Rana and Sharma, 2016). The Brakes
company also needs to identify which set of market is the firm selecting after a detailed analysis
of all the markets, this will help them to identify the most favorable market for the firm as per
their business.
Step- 2 Proper selection of specific markets:

The firms after choosing a set need to pick a specific market; this includes elimination of
the markets which are not favorable for business. The Brakes Company also remove the
unnecessary market and must choose the one best for them. This can be done on the basis of
different factors such as political frontiers; legal restrictions, etc are some major points for
rejecting some markets.
Step-3 Selection of Target countries –
The business unit now choose the most suitable market for them, now they need to
choose the country in which this target market is going to run (Paul and Mas, 2019). This
involves choosing those countries which prefer foreign competition and provides favorable
conditions for business units. The Brakes company also identify which country prefer the
business of food and catering in their country at number of benefits for growth and development,
as this is one of the key issues in the selection process. It involves factors like market size,
economical factors, population factors, geographical factors, political, social and cultural
environment; legal factors are some basic one.
Step- 4 Export promotion organizations:
This step includes the publicity of newly setup organization and how to attract foreign
buyers to their business. The Brakes also needs to set some promotional ways to start their
business with new consumers (Kaleka and Morgan, 2019). Also they need to take permission by
a lot of paper work form the Council of Export Promotion and other Councils. Because the
objective of their country is to promote their own exports
Describing with examples the different market entry strategies, including advantages and
disadvantages of each.
Strategic Alliances - It refers to collaboration between two entities in which one of the
entities acquired a controlling interest in an existing company in the overseas market (Nes,
2018). In this method the company can retain the existing management of their newly acquired
company; this type of mode of market entry allows both private and public firms to invest in the
foreign market without any restriction of amount and period.
Advantages

 In this company doesn't need any infrastructure to start his business as this provides a
ready-made infrastructure for the company form production to marketing of the business.
 The business can get benefits of outsourcing form other countries as there are no legal
restrictions for them.
Disadvantages
 There are possibilities of cultural clashes between the business units which can increase
conflicts in the firm.
 Technological is changing or varying in different regions and have a negative impact on
firm.
Foreign Direct Investment - It involves company an overseas market for making a suitable
and substantial amount of investment in that country. Some of the modes of entry into
international business are also part of it but this investment are not for specific period of time
rather it allows the company to stand in the market till it is able to. This strategy includes
mergers and acquisitions, Greenfield investments etc.
Advantages
 Companies can retain its control over the business unit and can change the operations as
needed
 This one of the cheaper source as it requires only one-time investment and has benefits
for lifetime.
Disadvantages
 The business is exposed to high levels of political risk, legal restrictions, imperfections,
etc.
 This involves substantial investment to make the company reputable in the foreign
markets.

Mergers - From the legal point of view is consolidation of two entities into one in which
there is no economical, commercial and political change in the nature of the business entity
(Yang and Gabrielsson, 2018). Transactions of merger are basically of stock, equity interest or
assets and these transactions are irrespective of changing the ownership of the company, it just
joins two units into one but it doesn't change the ownership status as it is dependent upon the
share of capital invested.
Advantages
 It is most suitable for big firms as it requires huge capital investment and will be more
efficient.
 It enables the firm to earn more profit and therefore has more chances of growth and
development.
Disadvantages
 If there will be increased Market share can lead to monopoly power of the other
company.
 It lacks benefits of economies of scale.
The Brakes Company will choose Strategic Alliance as this will be helpful in increasing
area of marketing or increasing market share as the other company will have its own market to
consolidate with another. This method will also be helpful as the company will be able to take
benefits of economies of scale other benefits like low cost, high return, favorable environment
will be there.
LO3
Give an overview of the key arguments in global versus local debate:
In today's rapid globalization in the world, firms prefer to operate the business on a wide scale or
a global scale. In order to achieve the dilemma of work effectively they have to face some
common challenges before going to global operations and to face disadvantages and to enjoy the
advantages of globally operating market this is being conducted. Many companies are I'll still in

the dilemma of counting the local differences between local marketing and global marketing,
companies in the foreign market are studying it for decades to understand what major factors
make it is the most preferable choice of the owners of Brakes Company.
There are a lot of positive points that are in the favor of doing the business globally rather than
doing it locally. The positive points include benefits of latest technologies, suitability of the
business environment, behavior of government towards International business units and benefits
of foreign direct investment are some major reasons which attract owners of the business units to
invest in the global market and expand their business globally (Boso, Debrah and Amankwah-
Amoah, 2018). But due to some cons the owners can also go towards local business expansion. It
includes certain political factors that affect the owner’s decision in Brakes Company.
One common flaw recruiting internationally is that targeted and precise market, and because
many countries have developed certain factors, that attract the foreigners to invest in their
country and expand their business to high limits. Also the local market has its own benefits such
as understanding of the businessman about the business environment, government attitude
towards business, number of legal restrictions are less, and the target market are already
identified and analyzed briefly and yet are more useful.
Everything has its own pros and cons such as local market has negative points that are less
opportunity of development, the amount of investment is high and the return is very less,
competition is already very high and is very challenging which can create a hurdle, in
development. The factors that affect the business directly are also present and this makes choice
of local market very less in comparison of the Global market (Srinivasan, 2016). Also even if
both are having some pros and cons the most preferable choice of the marketers or businessman
is global market due to positive points that are present in higher amount in global market than
local market.
Price, Product, Promotional and distribution approach varies in international context.
International marketing strategy states that there is use of word which is termed as global
customers. This is based on assumption that all have similar preferences and needs. Brakes can
apply identical marketing combination and instruments. There is no such need to use various
instruments for cultural and social environment in these countries.

Product
Product strategy have included three categorized strategies in international market which
are as follows -
 Product standardization - Brakes need to use unchanged product in the international
market. This makes sense because the product has same utility in different countries
markets. This strategy is helpful because these type of product demand usually remain
same in each market and it can be claim that product will run in the market smoothly.
 Product adaption - This type of product strategy requires adjustment as properties of
product varies country to country. It is not sure that conditions will be prevailing in the
market in which company is going to launch its products. Thus, there needs do
adjustment in such case. This adjustment can be of size, packaging and symbol. It
depends what is the culture of the particular country. To implement this strategy also
requires experience and huge amount of capital for the adaption of product.
 Gradual level of change in product - This type of strategy for product us bring used
when there is less competition in market for specific seasons. It can only be applied when
threat of competitors is low (Samiee and Chirapanda, 2019).
Price
Pricing of products need to be done carefully while doing business internationally. Due to
price management problems on international scale here are two points of view for the pricing -
 While doing business internationally there is difference in competition and wealth of the
countries. Hence, company needs to make separate pricing regulations and policies to
capture foreign markets. This can be premium, penetrations economy, price skimming
etc. Whichever suitable for the Brakes it can adopt that one. Thus, Economy pricing
strategy will be suggested to Brakes.
 From the other perspective, there is development of technology, mass and
communication at international level. Hence, it makes markets look like less distinctive.

It is hard to separate pricing policies in such case. Therefore, company has generally
recommended that they need to adopt global pricing strategy.
Promotion
It involves new potential consumers for the Brakes. The promotional activities are done to
attract foreign buyers in order to attract them towards the products of the company. To make
them aware about the product and for transferring information promotion is essential (Ibeh, Crick
and Etemad, 2019). Thus, for doing promotion for Brakes products at global level there is need
to analysis factors which are as follows -
 Firstly, firm needs to set objective for doing promotion in international market.
 To check availability of financial resources and have an experience in global market is
needed.
 Cultural factors such as language, religion, habits, symbol, color also matters while doing
international trading.
 The company needs to evaluate the competition in foreign market.
 By evaluating these factors, the company should make choice about promotion activities.
Distribution
Distribution of products in foreign market needs to be done in appropriate form. The
activities must rely on place and time by considering this distribution channel should set.
International logistics is crucial to sale products in foreign market (Eteokleous, Leonidou and
Katsikeas, 2016). Thus, distribution policy for Bakers needs to overcome temporary, spatial and
ownership huddles/barriers in order to distribute the products to variant manufacturers and to the
end customer.
LO4
Approaches in international marketing which client can adopt
Centralized Approach

In the centralized marketing approach marketing teams take decision of marketing in
foreign countries. They do planning prior and then execute plan accordingly. This approach is
only being helpful when marketing experts of the company are highly competent and have
experience of working in global market on earlier basis. Brakes can find country's marketing
expert and can take help from them in order to localize the products. This approach is applicable
when company sale is product by direct exporting in subsidiaries of other countries (Two
approaches to smarter international marketing, 2019). The company needs to develop marketing
capabilities within the organization to have control over sales cycle. To manage these cycles
Brakes need to hire great marketing expertise and professionals.
Figure 1 Centralized Marketing, (Source: Two approaches to smarter international marketing,
2019)
Decentralized Approach
In this approach decision making and marketing functions are out of field initially. This
approach is applicable if there are few distributors and representatives of the company. The firm
has another option they can have local sales offices in other countries. This approach works
when products are in heavily regulated industries or products are significantly localized for the
sale purpose. If the Brakes don’t have highly trained staff and doesn't have sufficient resources

than only they can go through this approach. The focus of this approach is on motivating and
supporting staffs of marketing. It gives a control over brand representation.
Figure 2 Decentralized Marketing (Source: Two approaches to smarter international
marketing, 2019)
Comparison between home and international orientation
Home orientation - It involves expansion of domestic product in global market. The
primary focus in this type of approach is on local market. Hence, business strategies are being
developed according to domestic market needs. Thus, the company needs to develop strategies
by taking domestic needs into consideration. Marketing mix is also done by keeping in mind of
country's requirements whereas when the business engaged in foreign marketing they need to do
extra efforts in all contexts.
International orientation - In such type of orientation world is considered as whole and
derived as single market. To increase the share in international trading so many companies are
using international orientation (Morgan, Feng and Whitler, 2018). Standardization marketing
strategy is used in such case. Before the launch of product in international market Brakes needs
to done detail study and analysis the needs and requirements of foreign markets.
Comparison basis Home orientation International orientation

Perception of market While doing domestic
marketing the perception is to
fulfill the needs of domestic
buyers by analysis the current
market trend in domestic
country. Thus, through this
firm is able to expand its
business in domestic territory.
While doing international
marketing the perception
changes. Marketing experts
needs to think about the whole
world. A deep study is
required to identify the current
requirements of potential
customers in various
countries. Here the company
is able to expand its business
internationally.
Marketing Strategy In home orientation domestic
strategy is being used to do
marketing of products
(Cateora, Meyer and Graham,
2020).
In International orientation
global standardized strategy is
adopted.
Benefits In this type of orientation less
efforts are required because
business is in own territory. It
is also cost effective and easy
entry is available.
In this type of orientation
main benefit is that economics
of scale is achievable.
Drawbacks There is limited market share
that can be covered. There is
less chance of expansion of
the business. There is very
limited scope in home
orientation.
Process and strategies varies
country to country. Thus,
sometimes it becomes difficult
to regulate standardized
strategy or process.

CONCLUSION
International marketing can be summarized as application of marketing principles that
helps to satisfy customer’s needs. This is undertaking of marketing activities in more than one
country. It has been concluded that there are three types of market routes such as Direct
exporting, Licensing and Franchising, Joint venture. The company will adopt Franchising and
licensing routes to enter into foreign market. It has been summarizing that Brakes will choose
Strategic Alliance. It has been determined that the shareholders and brokers also prefer global
share market, which makes it clear that expanding business globally will be wiser choice. It can
be said that It is important to remove barriers in centralized marketing as the growth is already
lower.
Recommendations
 Brakes should acknowledge the difference among the cultures of varies countries and
have to discuss them openly with the marketing team.
 The company should support and promote diversity initiatives.
 Brakes should hire foreign country's marketing expert that can assist them to localize the
products.
 Brakes could give training to its employees in order to operate business internationally.
 The firm should manage their resources carefully while doing international business.
 During international business the company should asses the current marketing trends in
that particular country in which they want to establish the business and then deliver
product accordingly.

REFERENCES
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Online
Two approaches to smarter international marketing, 2019. [Online]. Available through :<
http://www.tradeready.ca/2014/global_trade_tales/two-approaches-smarter-
international-marketing-centralized-vs-decentralized/>