International Marketing: Strategies for Expanding Business

This report discusses the key concepts and scope of international marketing, market entry strategies, and challenges and opportunities in international markets. It focuses on Rolls-Royce, a UK-based automobile manufacturer, and provides recommendations on why and how the company should enter international markets.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of selected organisation and definition of international market including
differences between international and local market ...................................................................1
Mention the key concepts & scope of international marketing and discuss rationale of selected
firm to market internationally.....................................................................................................2
Key criteria and selection process while choosing internation market to enter along with
evaluation of challenges and opportunities ................................................................................3
Define market entry strategy and discuss some strategies for selected firm, including their
merits and demerits.....................................................................................................................4
Critically evaluate how selected company can adopt their marketing strategies for
international markets ..................................................................................................................5
Recommendation why and how a firm is needed to enter an international market ...................5
TASK 2 ...........................................................................................................................................5
Covered in PPT...........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International marketing is stated as an application of marketing concepts and principles to
fulfil different wants and needs of individuals living across domestic borders (Berthon and et. al.,
2012). This report is written on the basis of Rolls-Royce which is a UK based auto mobile
manufacturer and subsidiary of BMW. Company is founded is 1998 and headquartered in
England. This assignment is going to discuss about distinction in local and international market
along with concepts and scope of international marketing. Also, different routes to enter
international market will be discussed and right route for firm will be selected. Also, selection
criteria for international market will be mentioned and market entering strategies will be adopted
to internationalise business in proper manner.
TASK 1
Introduction of selected organisation and definition of international market including differences
between international and local market
Rolls-Royce is a Britain owned luxurious car manufacturing company which is a
subsidiary of BMW. This company operates their business activities in global manner and its
main office is present in England, UK. This organisation is established in 1998 and provide
products like Wraith, Dawn, Cullinan, Ghost, Phantom etc. to their customers. This firm is
popular for their standardised services and products (Cavusgil and Cavusgil, 2012).
International marketing is defined as those marketing activities of a company which are
carried out at international level. It is based on the strategies which are formulated in home
country of a firm and get distributed to other branches. In general term, international marketing
is referred to undertaking of marketing activities in multiple countries. International market is
different from local market in various aspects which are stated below:
International market Local market
 It is sales or promotion of a service or
good in more than one country.
 It is related with the selling and
promotion of products and services
within domestic borders.
 In this marketing, larger area is served
and business operations are diversified
 Area served is limited and business
activities limits to a specific country.
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into multiple nations.
 Government interference is high.  Interference of government is limited.
Mention the key concepts & scope of international marketing and discuss rationale of selected
firm to market internationally
There exist different concepts and scope of international marketing. In context with
Rolls-Royce, these concepts and scope are listed below:
Scope of international marketing
 International marketing helps an organisation to interact with people of different
countries and nations. This helps a company in acknowledging different cultures and
traditions which enable them to satisfy the needs of various customers as per their
expectations (Coviello, Jones and McDougall-Covin, 2015).
 While operating in limited market, customer base of company reaches saturation due to
which growth and profits of company minimises. International marketing will provide
large pool of customers to Rolls-Royce so that they can earn maximised revenues.
Concepts of international marketing
 Export: When a service or good is sold to a foreign nation, it is called as exporting.
There are two kind of exports i.e. invisible and visible exports. Both kind of exports helps
a company in earning foreign exchange.
 Contractual manufacturing: In this concept of international marketing, an organisation
allow a company to manufacture their products on the basis of a contract. Here,
manufacturing organisation will only produce the product so that parent company can
overcome import barriers. Other activities like promotion, sales and distribution will be
carried out by host company.
Different routes to international market. Also, select and justify appropriate route for chosen
company
Major aim of Rolls-Royce is to became a market leader in manufacturing of luxurious
cars and other vehicles. In this context, they are needed to operate in different markets. There are
various routes which can be selected by the manager of firm to internationalise their business.
Some of these routes are discussed below:
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 Joint venture: In this route of internationalising business, two organisation share their
resources and forms a third independent organisation (Evers, Andersson and Hannibal,
2012). This procedure is similar to one and one became three concept. In this route, two
business firm works under a contract for limited time and share profits or risks of
business in equal manner.
 Licensing: It is an agreement between purchaser and actual organisation. In this
marketing route, owner of a business signs a contract with local seller to provide a
license. This license will allow local seller to sell products of Rolls-Royce and gain
commission as per signed contract.
 Direct exporting: It involves direct selling of goods in international market from the
domestic market. To use this international marketing route, manager in Rolls-Royce will
be needed to organise sale program so that maximum people in new market can
acknowledge about their products (Leonidou and et. al., 2010).
Out of all the market entering routes, Rolls-Royce can chose licensing route to
internationalise their business. It is an easy and quick way to enter foreign market as it will allow
Rolls-Royce to jump domestic borders and avoid trade tariffs. By this company can earn high
revenues and profits in international market.
Key criteria and selection process while choosing internation market to enter along with
evaluation of challenges and opportunities
International marketing is referred as carrying out business operations to plan, promote,
distribute and price goods or services of a company in more than one country. Key selection
procedure and criteria to chose international market for Rolls-Royce is discussed below: International marketing objectives: It is the basic step in which opportunities of
operating business in a specific country is estimated. Here, marketing team of Rolls-
Royce will analyse and identify different nations where Rolls-Royce can internalize their
business. Parameters for selection: Here, multiple parameters like business environment,
competition, organisational resources, social factors of different countries are analysed
and evaluated. This will benefit the manager in Rolls-Royce to identify on which grounds
they are going to enter a specific market (Navarro-García, Schmidt and Rey-Moreno,
2015).
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 Preliminary screening: In this stage, those markets which do not posses high
opportunities will be eliminated by manager of concerned company. Short listing of markets: In this step, potential markets after evaluation and analysis will
be shortlisted for internalizing business. Evaluation and selection: Out of all the desired markets, best market to expand business
will be selected so that desired outcomes can be achieved efficiently. Test marketing: In this step, customers from selected market will be provided with
products of Rolls-Royce to identify their response (Papadopoulos and Heslop, 2014).
 Commercial production: If feedbacks provided by customers will be positive then
commercial production of products will be started at international market.
Evaluation of opportunities and challenges in international market
Opportunities Challenges
 Rolls Royce can enhance their market
shares and revenues due to availability of
large pool of customers (Samiee, and
Chabowski, 2012).
 Brand equity and image of company will
be very high. Due to this, company can
became market leader in their respective
field.
 Due to Brexit, operating in international
market is bit difficult for UK
organisations due to trading charges and
other norms.
 Operating business in global results in
increased competition due to which high
amount of investment, technology and
manpower is needed.
Define market entry strategy and discuss some strategies for selected firm, including their merits
and demerits
Market entering strategy is referred as a planned delivery and distribution method so that
products of a company can be offered to new target market in a proper manner. There are various
strategies to enter a new market. In context with Rolls-Royce, some of these strategies are stated
below:
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Direct Exporting: As per this strategy, company will perform sales directly to new
market without physically operating there. Advantage of direct exporting is that it is cost
efficient and main company have full control over products in foreign market. Disadvantage is
that it can leads to business fail if suppliers in foreign market are not able to sustain customer
base.
Joint venture: In this strategy, two companies collaborate their business to create an
independent firm. This independent unit will aims towards a specific goals and disintegrate when
target is achieved. Advantage is that Rolls-Royce will share their expenses with partnered
organisation and proper utilisation of resources will take place. Disadvantage is that inefficiency
of one firm will impact the working of other firm also (Surugiu and Surugiu, 2015).
Critically evaluate how selected company can adopt their marketing strategies for international
markets
In order to adopt right marketing strategy, marketing manager of Rolls-Royce is needed
to analyse and research about international markets so that benefits and drawbacks of using
specific market strategy can be acknowledged. If company adopts a market strategy which is not
beneficial then this will leads to wastage of capital and expectations of Rolls-Royce while
internationalising business will be compromised.
Recommendation why and how a firm is needed to enter an international market
Manager of Rolls-Royce is recommended to internationalise their business so that they
can overcome saturation of local market and earn high profits and revenues. Also, Rolls-Royce
is recommended to enter international market by either licensing or direct exporting as both of
these are reliable methods and allow the company to internationalize business under cost
leadership strategy. By this, they will be able to operate in international market without investing
high amount (Wilson and et. al., 2012).
TASK 2
Covered in PPT
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CONCLUSION
As per this project, it has been comprehended that international marketing helps a
company in maximising their profits and sales. Contractual manufacturing, imports and exports
are basic concepts of international marketing. Basic routes for internation business are licensing,
direct export and joint venturing. Various market entering strategies helps a company to
internalize their business in efficient manner.
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REFERENCES
Books and Journals
Berthon, P. R. and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). pp.261-271.
Cavusgil, S. T. and Cavusgil, E., 2012. Reflections on international marketing: destructive
regeneration and multinational firms. Journal of the Academy of Marketing Science.
40(2). pp.202-217.
Coviello, N.E., Jones, M.V. and McDougall-Covin, P.P., 2015. Is International Entrepreneurship
research a viable spin-off from its parent disciplines. Rethinking entrepreneurship:
debating research orientations, pp.78-100.
Evers, N., Andersson, S. and Hannibal, M., 2012. Stakeholders and marketing capabilities in
international new ventures: evidence from Ireland, Sweden and Denmark. Journal of
International Marketing. 20(4). pp.46-71.
Evers, N., Andersson, S. and Hannibal, M., 2012. Stakeholders and marketing capabilities in
international new ventures: evidence from Ireland, Sweden and Denmark. Journal of
International Marketing. 20(4). pp.46-71.
Leonidou, L.C. and et. al., 2010. Assessing the contribution of leading mainstream marketing
journals to the international marketing discipline. International Marketing Review.
27(5). pp.491-518.
Navarro-García, A., Schmidt, A. C. M. and Rey-Moreno, M., 2015. Antecedents and
consequences of export entrepreneurship. Journal of Business Research. 68(7).
pp.1532-1538.
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Samiee, S. and Chabowski, B.R., 2012. Knowledge structure in international marketing: a multi-
method bibliometric analysis. Journal of the Academy of Marketing Science.40(2).
pp.364-386.
Surugiu, M. R. and Surugiu, C., 2015. International trade, globalization and economic
interdependence between European countries: implications for businesses and
marketing framework. Procedia Economics and Finance. 32 pp.131-138.
Wilson, A. and et. al., 2012. Services marketing: Integrating customer focus across the firm.
McGraw Hill.
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