International Marketing Research Review

This assignment requires a critical analysis of recent trends and challenges in the field of international marketing research. Students are expected to review provided academic articles, focusing on topics such as multicultural marketplaces, international marketing strategies within industrial clusters, the evolution of international marketing channels, addressing endogeneity issues, determining antecedents of marketing competencies for SMEs, product-country images, the role of culture in international relationship marketing, sustainable export marketing strategies, and more. The analysis should demonstrate an understanding of these concepts and their implications for international businesses.

International
Marketing (Group)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of globalisation of on international marketing...........................................................1
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Globalisation is a term of complex series of economies, political, social, cultural and
technological changes; it increases interdependence and interaction among people and companies
in disparate locations. Whereas, international marketing entails with several activities which are
undertaken by marketers so as to accomplish the business goals and objectives. Basically,
international marketing is an on-going process which leads production of goods and services.
The assignment is based upon Amazon which is an electronic commerce and cloud computing
company that was found in year 1954. The firm is going to expand its business in Sundan so as
to gain high competitive edge in a certain time period. This tech giant is one of the leading online
retailers in terms of market capitalisation and revenue. Main aim of report is to describe various
marketing trends and external drivers which can uplift international marketing activities.
MAIN BODY
Impact of globalisation of on international marketing
When different cultures meet, ideas generate and people accept views of others, the world
become small and it hinders all aspects of life, this process is known as globalisation (Samiee,
Chabowski and Hult, 2015). The core concept of globalisation entails with variations over the
world towards an integrated world.
By adding new dimensions in the business context, globalisation is quite obvious like
tremendous changes in business practices and innovations and these are considered as the main
factors in communication which are liable for existing level of globalisation. The phenomenon of
globalisation is unbeatable due to advancement of telecommunications and it supports economies
to survive as well as sustain in the long run. Along with this, it has led to set up several
multinational companies and increases international trade of an economy.
Amazon. Com is one of the largest online retail companies of the UK which operate in
200 countries. Firm also produces consumer electronics—Kindle e-readers, Fire tablets, Fire TV
and Echo—and is the world's largest provider of cloud infrastructure services. Vision statement
of Amazon is to be the world's most customer oriented organisation where people can identify
and discover all necessary things that they might want to buy online. On the other hand, mission
statement of company is to offer products to customers at lowest prices, with utmost convenience
and the best available selection. To accomplish its vision and mission, Amazon focuses on
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reducing the time of service delivery (Zeriti and et. al, 2014). Along with this, for effective
functioning, the firm offers international shipping of its certain production in some countries. In
order to make an adequate and attractive marketing, Amazon acquires different forms of
communication in order to know needs and wants of people in global context. Apart from this,
Globalization expedites both positive and negative effects worldwide business. There are ascend
in rivalry and ascend in venture levels; though, the negative effects on worldwide business are
the way of life which do impact and furthermore make more social issues like - kid work and
bondage and also natural issues.
International marketing comprises with an acquisition of marketing principles in order to
fulfil varied requirements and demands of people over the national borders (Cavusgil and et. al,
2014). The foremost decisions which every corporate association must make whether to go
international or not, many firms does not wish to globalise as they have enough share in
domestic market as well. But international marketing raises economies of scale, generate high
profit opportunities, untapped foreign market and Increased Economies of Scale as well as
elongated life of the product. In context of Amazon, the firm has acquired international
marketing strategies, i.e. marketing mix (product, price, place, promotion) for getting high
cutting edge.
As Amazon is going to expand its business in Sudan, thus is require for firm to conduct
PESTLE analysis in order to analyse external environment of the country and develop marketing
strategies accordingly.
 Political factors - The hurdles before e-businesses are not the same as the traditional
businesses. Still, there are risk factors that affect the e-retail sector. Amazon is the leader
in this sector and it is affected by several political factors. Even for the E-businesses like
Amazon and E-bay red tape in the African countries can be a big problem. In Sudan,
taxes and other political issues too are a costly affair.
 Economic factors – These elements are always an important influence on the market and
market condition. Although, economic condition in a market is good, it will result in
better sales and higher profits but economy of Sudan is not much effective due to low
disposable income of people. The world has recently been out of an economic turmoil.
Even while recession, the retail industry was doing well. It is because people will always
buy the regular items whether the economy is doing well or not.
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 Social factors - Social and cultural trends are also an important factor behind the growth
of e-retail. Online shopping trends have received a boost in the recent years. The
increased use of mobile technology and growth in digital technology both have boosted
online sales. Changing consumer demographics in Sudan are also going to affect the e-
retail sector positively.
 Technological factors - Technological factors have grown highly important in the 21st
century. Whether it is a traditional business or an online business each has to depend on
IT and other forms of technology to deliver better services. Technological innovation has
become the key to success in the modern era.
 Environmental factors - Sustainability is also a very important concern for the businesses
worldwide. Even the e-retailers have to focus on several areas like packaging, waste
reduction, and energy consumption to do business sustainably. Legal factors - Legal compliance is also just as important for businesses who operates
over the world. In any aspect of business, it is important for big brands like Amazon to
remain compliant with law. Amazon has a separate legal team to oversee the legal issues
and challenges. Apart from labor laws, there are other several areas where legal
compliance is essential.
Growth drivers of internationalisation: -
Market trends – There are several market trends like – customer taste and perceptions
plays a crucial role in growth of international marketing. Along with this, companies who wants
to globalised have a great knowledge of target market in which they will be performed
Technology – Internationalisation also improves technological advancements so as to
improve communication in global context. It supports firms to know about needs and wants of
customers and taking necessary feedbacks with them (Samaha, Beck and Palmatier, 2014).
World economic trends – In an economy, several trends which supports globalisation. At
world context, different aspects, like – inflation, interest rates, gross domestic product,
employment, poverty, international trades etc. Before starting a business in international markets
it is essential for companies because it will expand its business in Sudan so as to create a market
study of overall economy and gain high competitive edge.
Transport and communication – Advancements of means of transportation and
communication helps the process of import and export in other countries. In present scenario, by
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using effective transportations, i.e. airways, waterways firms can easily deliver their products
and services in other countries (Christodoulides, Cadogan and Veloutsou, 2015).
Leverages - In this modern era, companies are tend to acquire new sources of funds so as
to purchase of an asset. Basically, leverage enables gains and losses to be multiple. Different
firms which provides leverage facilities to manufacturing companies who wants to expand their
business at global level (Demangeot, Broderick and Craig, 2015).
Technological drivers – In this modern era, technology has shaped and set foundation
towards modern globalization. For instance, innovations in means of transportations one of the
great technological revolution in retailing industry. For example- introduction of commercial jet
aircraft and containerisation. Along with this. Invention of telecommunications and
microprocessors raised cloud computing and communication at a minimal cost. Although, instant
growth of internet is a leading growth which spread the concept of e-business and e-commerce at
global level (Papadopoulos and Heslop, 2014).
Political drivers – Modifying trading rules and laws as well as modulate markets will
lead to lowered tariffs and permits to foreign direct investments over the world. On the other
hand, political stability of a country also gives upliftment and survival of business units.
Establishment of World trade organisation is a great ongoing opening for private companies.
Market drivers – As domestic market is become more saturated, thus there is lack of
growth opportunities and firms cannot accomplish their marketing goals and objectives. Hence,
global expansion of functional areas of a business is the best way to get rid out of this situation.
Basic needs of customers and adoption of global marketing channels will contribute to transfer
marketing to certain extent in order to select internationalization.
Cost drivers – Costs and efficiency are varied from country to country and international
companies are willing to take this advantage. Basically, cost drivers is an opportunity tin terms
of building world economies of scale through high product development costs. Cost drivers helps
companies to raise high profitability and sales revenues in a certain time period.
Competition drivers – In global market, competition is increasing between firms and
companies are forced to expand their business at international level. Although, certain countries
are highly inter- depended among each other; thus two way trades and actions of FDI also
increases market competition. Therefore, to get high cutting edge, business enterprises are
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required to focus on improving their international marketing strategies; it also helps in
accomplishing business goals and objectives.
Advantages of Internationalisation Increase in free trade: An expansion in facilitated commerce has opened entryways for
financial specialists in nations to put their cash in creating country. Huge organizations
from created nations have the flexibility to work in creating nations. After Brexit,
European organizations have begun delivering and producing in other countries. It helps
firms to know more and more about foreign cultural and their market trends (Felzensztein
and et. al, 2014).
 Economies of Scale – It entails with reducing per unit costs that is increased from entire
production process. As globalisation is that which does offer new and innovative
technologies to business organisation. By acquiring them, firms can easily boost up
production volume without any involvement of labour.
 Framework:- Globalization prepares for evacuating wastefulness underway framework.
Drawn out defensive situation without globalization makes the generation framework
reckless about cost adequacy which can be achieved by following the strategy of
globalization.
 Innovation:- Another advantage of internationalisation is to draw in passage of remote
capital alongside outside refreshed innovation which enhances the nature of generation
(Kraus and et. al, 2016).
 Foreign direct investment:- FDI gives beneficial outcomes to have nations in a few
courses, for example, mechanical impact, work impact and salary impact. With FDI,
individuals ready to lead business with new advances and administration aptitudes; this is
on the grounds that FDI empowers innovation to exchange from created nations to
creating nations. In addition, preparing will be given to the residential specialists to
working business with the new innovation which will enhance their administration
abilities. Besides, FDI likewise contribute in the salary of host nation as gaining of FDI
will be tallied in the corporate duty
Disadvantages of Internationalisation Inequality: Internationalisation is linked with inequalities in income and wealth. There is
classification of countries on the bases of rural–urban aspects, such as – Brazil, China and
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India. It leads social and political issues and also affect the financial instability which will
restrict growth. As several countries are not access to new technologies and products,
then get excluded from the benefits (Hoppner and Griffith, 2015). Inflation – It is another risk of internationalisation, there is huge demand of innovative
products and services due to a steep rise in commodity prices. When the prices of such
goods will decreased then many of people at a great risk. High risks – Risk of economic recessions and financial downturns in a country or region
has a vast impact on sales and profitability of a business organisation. For example – in
2008, UK economy was suffered with credit recession and it highly hindered companies
who serve there because due to low income level, people were not able to spend more on
purchasing of luxurious products and services (Jean and et. al, 2016).
 Difficulty in managing cultural diversity – Due to lack of market knowledge, companies
are not able to recognise needs and wants of people. It is too difficult to interact with
customers' at global level and then generating products accordingly. On the other hand, in
multinational companies, i.e. Amazon, various cultural people are being worked by
having different nature or values.
Market Entry strategy
Porter's diamond model
The model is used for attaining competitive advantages of nations by offering a model
which assists to understand the competitive position of UK in world competition. The Porter's 5
forces model also can acquire for geographical region (Kotabe and Helsen, 2014).
Below are the interlinked factors of competitive advantages for nations in Porter's
Diamond framework: - Firm strategy, structure and rivalry – The whole world is getting dominated by dynamic
conditions and there is a direct competition that impels companies to tend towards driven
up innovation and productivity. Demand conditions – As customers are more demanding, they want high quality and
effective products which can satisfy their needs and wants in the best possible manner.
Higher pressure of facing competition, firms are constantly improving their functional
areas as well as competitiveness, via – innovative products etc.
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 Related supporting industries – Different proximity of upstream or downstream
industries makes easier transaction necessary data and information. Along with this, it
also promotes exchange of new ideas and innovations (Kanibir, Saydan and Nart, 2014).
 Factors conditions – Situation of a specific nations related with production components,
i.e. infrastructure. These are the factors that helps in raising competitiveness in retailing
industries. Along with this, different factors, such as- human resources, technological
resources, infrastructure and knowledge resource. Furthermore, factors like – quality of
research, natural resources (climate, minerals, oil) and liquidity upon stock markets; this
is a prime reason in order to create international competitive position.
CONCLUSION
From the above report, it can be concluded that international marketing plays a crucial
role growth and success in every business organisation. Globalisation is a key success factor as it
brings several opportunities as well as challenges for business to operate in a market. It assists to
evolve a business in different ways. Along with this, it has been assessed that Amazon is the
largest internet retailer which deals in electronic, home appliances and clothing items. For this
purpose, the business organisation acquires different approaches of international marketing in
order to acquire high competitive edge in a certain time period. An effective international
marketing involves proper communication because it is not possible to get complete knowledge
about the foreign cultural.
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REFERENCES
Books and Journals
Cavusgil, S. T. and et. al., 2014. International business. Pearson Australia.
Christodoulides, G., Cadogan, J. W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review. 32(3/4). pp.307-328.
Demangeot, C., Broderick, A. J. and Craig, C. S., 2015. Multicultural marketplaces: New
territory for international marketing and consumer research. International Marketing
Review. 32(2). pp.118-140.
Felzensztein, C. and et. al., 2014. International marketing strategies in industrial clusters:
Insights from the Southern Hemisphere. Journal of Business Research. 67(5). pp.837-
846.
Hoppner, J. J. and Griffith, D. A., 2015. Looking back to move forward: a review of the
evolution of research in international marketing channels. Journal of retailing. 91(4).
pp.610-626.
Jean, R. J. B. and et. al., 2016. Assessing endogeneity issues in international marketing research.
International Marketing Review. 33(3). pp.483-512.
Kanibir, H., Saydan, R. and Nart, S., 2014. Determining the antecedents of marketing
competencies of SMEs for international market performance. Procedia-Social and
Behavioral Sciences. 150. pp.12-23.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Kraus, S. and et. al., 2016. Standardisation vs. adaption: a conjoint experiment on the influence
of psychic, cultural and geographical distance on international marketing mix decisions.
European Journal of International Management. 10(2). pp.127-156.
Papadopoulos, N. and Heslop, L. A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Samaha, S. A., Beck, J. T. and Palmatier, R. W., 2014. The role of culture in international
relationship marketing. Journal of Marketing. 78(5). pp.78-98.
Samiee, S., Chabowski, B. R. and Hult, G. T. M., 2015. International relationship marketing:
Intellectual foundations and avenues for further research. Journal of International
Marketing. 23(4). pp.1-21.
Zeriti, A. and et. al., 2014. Sustainable export marketing strategy fit and performance. Journal of
International Marketing. 22(4). pp.44-66.
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Online
Market screening. 2018. [Online]. Available through: <http://www.marketingteacher.com/the-
international-market-entry-evaluation-process/>.
Ansoff Matrix for market expansion. 2012. [Online]. Available through:
<https://blog.oxfordcollegeofmarketing.com/2016/08/01/using-ansoff-matrix-develop-
marketing-strategy/>.
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