INTRODUCTION International marketing is a process that involves executing all the related principles of Marketing and effectual practices in International border on larger scale for increasing the presence of the entity in larger work areas(Bauer and et. al., 2020). The concept of marketing internationally enables The entity to attain the attention of large number of audiences. The main purpose of promoting goods and services of the respective Organisation in the international market is to spread awareness amongst potential buyers present in foreign countries and fulfil their needs as per their expectation as well as preferences. The present report is constructing for understandingandgainingthroughknowledgeofinternationalmarketingincontextof Sainsbury. It is the second largest supermarket chain in the United Kingdom which was founded in 1865 by John James Sainsbury. The company only deals in UK's market it and it is headquartered in London. The assignment will emphasize on the contribution made by marketing to businesses in international context. Along with it various entry routes will be evaluated in context of Sainsbury and the most successful option will be suggested. Moreover, the elements of marketing plan are investigated for seeking an understanding about their adaptation to International markets. And lastly in the report some international marketing approaches are discussed which can be adopted by Sainsbury. TASK 1 P1 Analyse the scope and key concepts of international marketing. International marketing is a systematic procedure that consists of different practices institutions and activities which are effective bile performed across the boundaries of home country and that seek to generate, transmit and exchange offerings that holds considerable value for the customers and related stakeholder groups of the society. International marketing can also be determined as execution and implementation of marketing actions as well as capabilities within global context (Deffner and et. al., 2020). Anotheraccelerationof internationalmarketingconceptiscombinationof various practices that pursue to exchange of products and services outside the domestic market with the aim of satisfying customers preferences and needs present in international borders. SCOPE OF INTERNATIONAL MARKETING:
Today, businesses and markets have evolved with the modern era and have become highly dynamic. Hence, in context of present scenario international marketing has a wide scope which is boosted due to globalisation. As modernization and globalisation is taking place the businessesarefacilitatedwithbetterinteractionandwiththathasenhancedscopeof international marketing.Import-This is the most common and simplest form of international marketing where business import goods from foreign markets and sell them in domestic market to potential buyers.Export-The exports are just opposite of imports there the company sell their offerings two international business or to their related franchisees which then are sold by the importing party in their domestic market (Malarvizhi, Nahar and Manzoor, 2018). Contractual agreements-This is an expansion opportunity for a business organisation by enteringintoacontractualagreementwiththeoverseaspartner.Insimpleterms contractual agreement enables the business to expand into international market by joining hands with a foreign partner. KEY CONCEPTS OF INTERNATIONAL MARKETING:Domesticmarketing-Thisform ofmarketingistotallyconcentratedon making promotional plans and company presence in domestic market of the home country. Domestic organisation who only operates in their home market and do not have any operations in global market. For example Sainsbury it is a supermarket retail chain which is only operating in United Kingdom till date.International trade-The notion of marketing is concerned with developing a strong and effective flow of goods and services in different countries and Nations as well as holding aproperpresentinthemarketplaces.ForexampleTescoamultinationalretail supermarket which serves its products and services in several countries to a large customer base. Comparativemarketing-Therearenumberofmarketingsystemsandprocedures available in market that are used by marketers. When these concepts and systems are compared together with the aim of ascertaining their similarities and differences it is known as comparative marketing.
P2 Explain the rationale for it to want to market internationally and describe the various routes to market the organisation can. There are several reasons why a business firm moves and expands its operations into an international marketplace and offer its good and services to wider customer base. But when it comestointernationalmarketingthemainreasonby theorganisationwantstoconduct promotional activities in foreign country is to increase their presence in respective markets amongst potential targeted audiences and become the part of the business environment of a global country. Therefore, there are some specific reasons why Sainsbury which to expand internationally: The key aspect of marketing the business internationally for Sainsbury is to enhance and diversify their revenues by attracting other sources and introducing their commodities to diversify the customer base (Sun and Wang, 2019). Another key rational that supports the idea of internationalisation of Sainsbury is increasing the company's scope by increasing its operational area and moving to the global work place. According to these rationales discussed some of the market entry methods are suggested below for Sainsbury for moving into international markets:Franchising-The first common route which is adopted by several businesses is off franchising. According to this method Sainsbury will be allowing other international company or individual business owner to established there store for business in the global market and use the company’s name and brand image while running the operations and selling goods to the customers.Licensing-From very long time licensing is wrongly stated similar as franchising but both the processes are different. In licensing the parent company who is willing to expand there market presence globally allows other local firms of the international market to use their intellectual property rights and conduct business on their behalf in the global marketplace. Both licensing and franchising are different procedures and brings in a separate advantages as well as risks for companies while expanding and entering the international market. Exporting-This is the most and simplest process of entering a new business market and moving out of the domestic boundaries of the company. Sainsbury can make use of this
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routeformovingtheiroperationsintoforeignborders.Thecompanywillbe manufacturing and producing its products and services in the domestic market and sending the semi-finished or finished goods to the international borders where their goods and services will be sold to a larger and diversify customer base and then it will be satisfied. M1 Evaluate the opportunities and challenges that marketing internationally presents to your chosen client organisation. International markets are extremely difficult to tap in, as an intensive research study is required be to be conducted in order to determine the opportunities and challenges prevailing in the same. It is beneficial for the companies to study the market conditions of the international markets in order to plan out effective strategies to align to the same. Few of the opportunities and challenges that can be considered to be important for the Sainsbury are listed below :- Opportunities– The foreign markets will facilitate in the advanced development of infrastructure of the Sainsbury. It will also assist the company in order toreach to the global customers across the globe and enhance the retention and agenting of them in the company. Expansion of the operations in foreign markets will lead to enhanced profit generation of the business organisation. Challenges– The aggressive and extensive competition and rivalry I the foreign and international market can make be considered to be one of the biggest challenges for Sainsbury (Ritz, Wolf and McQuitty, 2019). TASK 2 P3 Evaluate the key criteria and selection process to use when considering which international market to enter. Expanding and entering a new marketplace is a tedious and critical task that involves number of stages and vital decisions that imposes huge influence on the success of expansion and movement in global marketplace. Therefore, certain process needs to be followed by Sainsbury while doing so which is as follows:Internationalmarketingobjectives-Thisstageisidentifiedforexportmarketing objectives and companies targets. In regards to it the selected market and the significant area in which the company will be establishing its Store to serve their services and
products at the global level will be chosen in regards to companies marketing objectives and the foreign market.Parameters for selection-There are certain significant parameters which is needed to be properly evaluated and understood by the company once they have selected the the area that are significant to their products and services. Therefore in this context certain parameters which is needed to be considered by Sainsbury regarding the selection of market are raw materials availability, appropriateness of infrastructure, government laws, aggressiveness of existing rivalries and many other.Preliminary Screening–It is process wherein all the locations that are being taken into consideration in order to facilitate in the expansion of the market operations are screened in order to find their feasibility and effectiveness. The locations that are not providing specific and relevant benefits to the company are eliminated at this stage.Analysis and selection-This is the stage where the market which isbeing analysed an explored for selecting as a potential international market for the establishment will now undergo a practicability study and will be examined for the related cost benefits it will be offered for the market(Xiao, Wang and Chan-Olmsted, 2018).Test marketing-This is this stage where some of the sample offerings will be provided by the organisation to the people around the area in order to gain knowledge about customer reactions and likings as well as expectations from the brand. Commercial Production– It can be characterized as the last stage of the process. It begins after the realisation of the results derived from the examination of marketing period. If the results are in the favour of the business organisation, the company can start with their production and manufacturing process in the target market. P4 Explain, using examples, the different market entry strategies, including the advantages and disadvantages of each. Business can choose up to as many strategies and entry routes as it can manage and handle effectively. This is due to the only reason that is various number of market entry strategies are available in the business environment for organisations to adopt that is developed for the resource provided by globalisation and modernization in business strategies. Hence There are several different types of market entry strategies that can be used by Sainsbury for making future entries in specific profitable markets. Some of those market entry strategies are discussed
above and in this section of the report these market entry strategies are now being discussed critically by putting emphasis on their advantages and disadvantages.Exporting:this is a market entry strategy the company do not directly enters the market but the sales actions are conducted by suing the existing businesses and selling partners in the new location and fresh market place by selling them all finished goods to international brand who has a significant position in International Marketplace. Advantage The relative advantage of exporting products in fresh markets for the organisation that is Sainsbury is the lead it gets in the market and towards productivity alongside appropriate profits are earned by the brand too as it is one of the simplest forms of entering the international business environment.As well as it enables the organisation to have the most significant exposure to the customer base of the international workplace (Chatzigeorgiou and Christou, 2019). Disadvantage The disadvantage attach to exporting services being used as an international market entry strategy is increased cost due to higher tax is being paid for making its available in new markets to both the domestic and international governments.Licensing and Franchising:These processes are effectual and productive for Sainsbury as it allow the company to get in touch with other organisations and business owners of the foreign market and sell their goods and services threw them in the international market and on the global level. The company by making use of franchising and licensing agreements will be allowing the international businesses to make use of their intellectual propertyforconductingtheiroperationswiththebrandnameofSainsbury.The advantage and disadvantages are as follows. Advantage The key to success of these International strategies that isfranchising and licensing is a technique which involves low cost and capital investment in all the business related activitiesand gaining access to larger customer base with diverse needs and requirements. Sainsbury will be benefited by using such means to enter a new market as the company will be working with cost effective procedures and will be getting higher returns on their investments (Sahaf, 2019). Disadvantage
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The disadvantage attached to franchising and licensing concept and strategy is the increased level of risk in these strategies by entering the new business environment of being duplicated, losing the control over the operations and misuse of their intellectual property by the international form for their personal advantages. M2 Apply the market evaluation criteria and entry strategies, and make recommendations for your chosen client organisation. / D1 Produce a critical evaluation of the international market context, including insight into how your chosen client organisation should adapt their marketing strategies for various markets. There are numerous entry strategies available with an organisation in order to expand its business operation in the global market so as enhance the growth and success of the organisation inthecompetitivemarketenvironment.Acquiringlicensing,introducingfranchisesand exportingtheproductsaresomeofthepopularentrystrategiesthatcanbetakeninto consideration. The mentioned strategies can provide assistance to the company in reducing the investment of capital as well the incurred expenses. Implementation of these strategies can lead to attraction of wider consumer base. Hence, the utilisation and optimization of the same is recommended to the Sainsbury in order to enter internation market environment(Rabêlo Neto, de Sousa-Filho and Ogasavara, 2019). TASK 3 P5 Present an overview of the key arguments in the global versus local debate. Global marketing is a useful concept which offers a number of opportunities as well as advantages to the company and businesses to enhance and grow their business as well as customer base by reaching out to the maximum possible profitable audiences. As well as the companies will also be exposed to more diverse infrastructure and business practices that will enable them to make progress with rapid changes and development (Graham, 2018). Hence, global marketing is a strong and a potential concept that is served as a product of globalisation and offers large business opportunities to several different countries, their respective economies and all the different business firms that are running in the specific marketplace. Despite of the business opportunities and productivity offered by global marketing and international business possibilities several companies do believe that local marketing is a effectual and best strategy for them in comparison with international marketing. Sainsbury is one
of biggest example of the same as the company is one of the second largest retail supermarket chain of United Kingdom but do not deal in any other country or in any other international market. Hence, below in the table a comparison is provided in between both the marketing strategies that is local and global(Peruta and Shields, 2018). BasisLocal marketingGlobal marketing Products and servicesIn local marketing and market Sainsburyofferthemost suitable product and services tothecustomersasthe exactlyknowabouttheir needsandpreferences (Goldberg,Fishbeinand Middlestadt, 2018). Inglobalcontextthe marketingplansandthe market approached is wider. Hence,theofferingofthe companywillbe accompanying the needs and requirementsofhuge populationandpotential buyers rather than focusing on certain number of people. Cost and budgetInordertoconductlocal marketing the cost involved is lessandthebudgetsare developedanddivided according to the plans made and strategies identified to be implemented. Ontheotherhandglobal marketingcontext iscovers a larger segment which is why cost involvedis huge as well asbudgetsaredividedinto two different regional offices ratherthanthemarketing activities(Davvetasand Halkias, 2019). Promotional tacticsForconductingpromotions forlocalsandindomestic market of the company the promotionaltactics are easy andlesscriticalandless complexwhichsuitsthe businessmodelofthe On the contrary if Sainsbury ismovingininternational waterstoconductbusiness activities the company will be leadingmoretactical promotionaltacticswhich willbeinvolving
organisation.diversificationintheir businessmodelandseveral adjustments. M3 Evaluate the context and circumstances in which your client organization should adopt a global or local approach, highlighting the implications of doing so. In very simple and easy words Sainsbury can adopt global approaches of conducting marketing and promotion strategies while entering a new market and expanding its business operation (Zahay and Roberts, 2018). The local Marketing concept is more related with its domestic market and domestic population which is suitable for a company to adopt in its home country of operations. P6 Investigate how the product, price, pricing and promotional distribution approach differs in a variety of international contexts. / M4 Determine and articulate in detail how to adapt the marketing mix of your client organization in different international markets. The elements like product, price, promotion and distribution are part of marketing mix framework. This is a effective marketing tool that involves various strategies as a factors and support a business firms in making strong potential decisions in relation to their marketing performances. The marketing mix of company differs in local and global contexts which are elaborated below in more detail in context of Sainsbury (Rather, 2019).Product-The first element of marketing mix is product which describes the significant and prominent item that the company is selling highlighting over the industry in which it is dealing. Sainsbury is a supermarket that deals in Retail industry and offers various types of consumer goods and consumable items to the customers.Price-The second element of the framework that is pricing focuses on the price strategy that is adopted by the entity to for making sales in the respective market and attracting customers by offering them appropriate value for money. The pricing strategy of Sainsbury is competitive that is the company changes its pricing structure according to the changes taking place in the competitive environment and by the rivals.Place-The place factor is also referred as distribution channel that a company uses to become accessible and reachable by its customers and the targeted audiences. the physical channels which are being flourishing in the present business environment are
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physical and virtual. Sainsbury is a modern firm which make use of both physical and online platforms to serve their customers through numerous retail stores and it's online delivery making services (Zhang and Pitts, 2018). Promotion-The last but not the least is the promotional factor that is a key for a business to gain success and also almost at actual part of a marketing plan. The promotional tactic that is being used by Sainsbury to offer its offerings in the market and spread awareness among the potential buyers is social media, digital marketing and traditional marketing. With the help of digital marketing the company attracts the larger customer base but by using traditional marketing the organisation can attract those who still live their life by traditional means and with traditional aspects. D2 Produce a critical evaluation of how the marketing mix is applied to a range of international contexts. The marketing mix factors that are product, price, place and promotion are discussed in context with sensory and its movement to international market. In accordance to the discussion made the products and services offered by the company are those consumable items which are regularly needed bye people and Sainsbury can make changes in those items according to the location in which it is been expanding itself (Diallo and et. al., 2018). The pricing and distribution channels can be same as company is entering into a competitive environment and does it will be needing effective and strong strategy to stand itself in front of the competitors firmly and strongly. TASK 4 P7 Explain and analyse the various international marketing approaches your client organisation can adopt. Marketing is abroad and a very wide concept that involves number of practices, tools and concepts. According to experts marketing is a business function that involves certain actions and tactics that are related with spreading awareness in public about the offerings an services of a particular brand. Therefore, with increasing globalisation and revolutionary changes taking place in technological environment marketing criteria have also evolved and changed. Nowadays businesses have largest number of options that are productive, offers higher results to the business and brings in better outcomes by way of responses from the audiences.
Hence there are certain international marketing approaches that can be adopted and used by Sainsbury for placing itself in a new foreign market and making customers informed about their existence as well as presence in the respective market (Kingsnorth, 2019).Omni- channels marketing-The first upgraded and updated marketing tool which can be used by Sainsbury while entering a new market place for conducting their business operations is Omni channel Marketing. This marketing approach was initially neglected and discarded by the marketers and organisations. But in today’s business environment every marketer do involve Omni channel marketing in their marketing plans. This process is effective and potential as it involves both physical and virtual platforms and covers all the audiences for seeking their attention with the help of strong and air tight marketing phenomenal (HR and Aithal, 2020). Digital marketing-The next most important and commonly used marketing channel for strategy in the present business environment is of digital marketing. Technologies are evolving and presented a suitable product to the marketing segment that is digitalization and digital products for conducting promotional activities and reaching out to the maximum and infinite audiences without any interference or breakages. If Sainsbury adopts digital marketing strategy for conducting promotional activities in foreign markets itwillbeacosteffectiveandhigherproductivityemarketingstrategyforthe organisation. P8 Explain home and international orientation and ways to assess competitors, outlining the implications of each approach. Every business organisation is different from one another instance at a unique position in market from the other. This implies that different organisation make use of different orientations while conducting their business activities(Kern, 2020). These orientations of businesses depend upon their operations, nature of business and scope of its products and services being offered in regards to the suitability and adaptability of their customers and marketplaces. Thus, in relation with orientation there are several ways to assess competitors of Sainsbury that is presented underneath:Ethnocentric or home orientation-The orientation phenomena describes the expansion of domestic products into the international market. That is the company engages in excess production of production services in the domestic market and expand with the same
offerings into the new international market place.Key concern of the strategy is to complete the requirements of the local market and make use of sustainable techniques in accordance to preferences of customers and domestic buyers.Polycentric-The polycentric approach describes the production of goods and services by undertaking the expectations and needs of varied customer base and marketplaces. By use of this technique the business organisation imposes significant marketing rights business associates present in foreign market their the conduct marketing operations in relation to the respective global location. Geocentric or International orientation-According to the geocentric or International orientation practice the whole world and all different types of customers all treated under a single market strategy by the marketers of the organisation. Most of the internationally operating businesses adopts International orientation for keeping a broader view and exposure. Hence Sainsbury is also suggested to carry out their business operations by adopting suitable standardise marketing phenomena and strategies while launching their products in the market it off there suitable International location (Alamäki, Pesonen and Dirin, 2019). M5 Evaluate various marketing approaches and competitor analysis in relation to an organization and make recommendations on how they should operate in an international context. In accordance to information identified in the section above related to varied types of marketing approaches in relation to international business environment and related promotional plans. Amongst all the approaches discussed the most suited and beneficial one for Sainsbury is digital marketing in case brand wishes to make promotions on global context. The main reason behind the same is the cost effective nature of the technique and it also allows the brand to be presented in front of a larger population and attract more and more customers. D3Makerecommendationsonhoworganisationsshouldbestructuredtomaximizethe opportunity in an international context According to the analysis and evaluation conducted the most suitable and suggestive structureforSainsburytoadoptinordertomaximiseitsbusinessopportunitiesinan international market place is of working through licensing of franchising agreements. These structures will allow the company to place its first steps into new markets in an effective manner (Centeno and Wang, 2018).
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CONCLUSION The above work discusses an analysis the concept of international marketing that concludes the effectiveness and potentials attached with the notion in context of earning higher profits by engaging largest customer base within the organisation. While understanding the idea of international marketing different routes to enter foreign borders are evaluated, comparison between International and local marketing is conducted as well as other significant concepts are discussed. From theconducting research a dissect is identified that international marketing is a key resourcefor business to expand but it also carry certain risk factors that can become short or long-term barriers between the growth and success pass of the company. Therefore it is suggested that organisationsneed to conduct examination while they plan to move into global market and wishes to determine the scope of international marketingin certain rationales that are related to entry in the specific market by taking appropriate route.
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