International Marketing: Scope, Concepts, and Strategies

This document provides an overview of international marketing, including its scope and key concepts. It discusses the rationale for organizations to go global and different routes to enter global markets. It also explains the key criteria and selection process for international market entry, as well as various market entry strategies and their advantages and disadvantages.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
International
marketing

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
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BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
LO 1 ................................................................................................................................................3
P1 Scope and key concepts of international marketing .............................................................3
P2 Rationale for an organisation to go global and different routes to enter global markets ......4
M1 Evaluate the opportunities and challenges that international marketing has .......................6
LO 2 ................................................................................................................................................7
P3 Key criteria and selection process to use in international market entry ................................7
P4 Explain various market entry strategies and their advantage and disadvantages..................8
M2 Apply market evaluation criteria, entry strategies and make recommendations ................9
D1 Critical evaluation of international marketing concept including strategies for various
markets .......................................................................................................................................9
TASK 2 .........................................................................................................................................10
LO 3 and LO 4 ..............................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
INTRODUCTION
International marketing is defined as the way of starting business in foreign countries. For
doing so, it is needed by companies to develop strong and effective strategies so that they can
compete in global markets. The international marketing has the objective for succeeding in
foreign markets by developing effective strategies (Cavusgil, and Cavusgil, 2012). All
organisations have to make effective strategies for entering in international markets effectively.
The following report is based on Waitrose. This is a British supermarket chain that is food retail
division of Britain's largest employee owned retailer, John Lewis Partnership. The head quarters
of this organisation are located in England. The following report includes two parts – task 1 is
report and task 2 is presentation. This report includes scope and key concepts of international
marketing, opportunities in international markets and selection process for using international
market entry.
TASK 1
LO 1
P1 Scope and key concepts of international marketing
The concept of international marketing is related with the performance of business
activities and operations which are designed and made for promoting and flowing of goods and
services offered by the company. International marketing has huge scope in business
environment. The scope of international marketing is mentioned below -
Imports - This includes importing of products for a brand in the same way as products
are imported from different countries. There are various businesses which buy products in order
to resale it to a potential consumer which is gathered. Organisations take care of imports for their
own use which is creation and improvement of production line (Chung, Lu Wang, and Huang,
2012). Companies do this when they are sure that usage of the product can help in attaining
organisational objectives. This is helpful in having a unique solution.
Exports - Exporting of a product is related to trading of products to a country.
Organisations are involved in exporting the finalised product to foreign markets or on the

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
franchises. In such markets, company is able to sell the products to local people and in this way
high revenue and profits are generated. Sometimes, companies export semi finalised goods and
products for boosting treasury of brand. Profits and revenue generated by export is used for
paying cost of import, covering the cost of development and profit development. Exporting and
importing of products help an organisation to expand in international market. In context of
Waitrose, it can export or import products or services to establish business in other foreign
countries.
Contractual agreements – When any organisation is seen to enter international markets,
there are opportunities of doing various changes in business. This is scope of international
marketing. While working in foreign markets, companies have to sign contractual agreements
with different companies in order to develop and enhance business (Evers, Andersson, and
Hannibal, 2012). These agreements are basically in context of licensing or co production or other
technical assistance. The licensing is upgraded and it includes different agreements that are in the
form of patents, trademarks, brand names, secret of brands, etc. Companies have to pay high fees
for these contracts but once business is established and starts earning profits, fee for these
licenses is covered automatically. When Waitrose is entering into international markets, it has to
sign different contractual agreements for sustaining in those markets.
Joint venturing - This includes collaboration of association of two different brands for a
reasonable period. This association of two different companies provides occurrence of a firm
which works independently and the main goal of this organisation is same as that of parent
organisation. The new firm is working under the banner of venturing (Fletcher, and Crawford,
2013). Such kind of scope of international marketing is valuable for those companies in which
there is blockage of new entrants.
Contract manufacturing – This is one of the best tactics which is used for companies for
assembling the products. In context of this scope of international marketing, the organisation
makes contract with other company which is assigned for assembling products. By using this
process, half of the price is cut and there is easy exit from this.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
P2 Rationale for an organisation to go global and different routes to enter global markets
The main aim of Waitrose is to provide supermarket facility to different people and it
focuses on freshness and quality of products. Waitrose is an organisation which stands for
reliability. The product range of this supermarket rarely changes and shelves are generally full
and product quality is constant. There are various opportunities that a company has while going
global. This company has good reputation and clear product displays. If Waitrose will work
effectively in international markets, it will easily earn more money and profits.
Routes of entering into international markets
A lot of ways are there for a company to enter into international markets and earn global
success. Such routes are effective for a company as it provides a base to enter into a new and
potential international market. Some of the ways that can be used by Waitrose while expanding
it's business in foreign countries are mentioned below -
Direct exporting - It includes selling of product or goods directly to the market which is
chosen by the company after evaluating and analysing the resources and raw materials in market.
In this type of intentional marketing route, it is seen that companies require to have sales
program for representing the business within marketplace (Meissner, 2012). Distributors or
agents represent company in other markets. This can be used by Waitrose to enter international
markets.
Licensing - This is defined as agreement which is signed when there is contract with
purchaser and business. This means the company provides license to another local brand or
company to work under the name of the company. Waitrose can do licensing for marketing and
production of the company.
Franchising – This includes continuing a relationship in which a franchisor provides a
licensed privilege to the franchisee for doing business and offers assistance for training,
organising, merchandising, managing and marketing in return for profits and money. This is a
process by which companies can rapidly expand into market. The concept of franchising is best
for companies which are having repeatable business model. In this context, while starting

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
business the company must have strong business model at the initial level i.e. first year and in the
second year another business model is used.
Partnering – This is also a way of entering into international markets and starting
business in foreign countries. There are various forms of partnering like co-marketing
arrangements and sophisticated strategic alliance for manufacturing (Paliwoda, and Thomas,
2013). This is a useful strategy in markets where business culture and social culture is different
from the local partners.
Joint ventures – These are a kind of partnership which includes development of third
independently managed company. This is a one and one equal to three process. According to this
process, two companies agree for working together in a specific market and they develop a third
company. In this kind of partnership, risk and profits are shared in equal manner.
Buying a company – This is a market entry strategy in which the company buys an
existing local company. The reason behind this is company has substantial market share and
direct competitor or government regulation which is an option for entering foreign market. It is
an expensive method for entering into foreign markets. This route of entering into foreign
markets will help in providing status of being a local company and there will be benefits for
enhancing knowledge about local market and established customer base.
Piggybacking – This is a unique way of entering into international markets. When a
company is having a unique product or service which can be sold to large domestic firms and
these are present in foreign markets then these can be included in inventory of intentional
market.
Internet – This is a new channel for different organisations to do business in different
countries (Papadopoulos, and Heslop, 2014). The internet selling is defined as the fastest and
easiest way of capturing share of foreign market. The online presence of business can help in
allowing customers to order products and goods of the company from anywhere across the
world. An online store is developed for managing business activities in different countries.
The best route of international market entry used by Waitrose is franchising. This is a
process by which companies cam easily enter new countries by providing franchisee of the

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
company to other local organisation. This is a cost effective strategy and once business is
developed then company can expand market share in that country by enhancing stores in that
country.
M1 Evaluate the opportunities and challenges that international marketing has
There are different opportunities as well as challenges that organisations face while
marketing at international level. Wairose has to face different challenges and opportunities while
working in international markets.
Opportunities Challenges
 Waitrose will be able to increase
marketshare of the company across the
world by starting successful business in
different countries.
 Business expansion of Waitrose will help
management of this company to analyse
various trends of doing business in
different countries.
 Working at global level enhance working
of workforce in different countries and in
this way employees will get experience
of working with people form various
cultural backgrounds.
 After Brexit, it has been challenge for all
companies to do business as the trading
charges and prices are affected a lot.
 Marketing for a company is very
important as it will help in attracting
more customers towards the company.
There is presence of knowledge of both
international and domestic culture if
companies are working internationally.
Also while working in foreign markets,
there are chances of conflicts and fights
among employees. So it is important to
manage such issues while working in
international markets.
 Global economy plays important role in
making expansion decision and political
challenges after Brexit needs to be
considered before doing market
expansion.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
LO 2
P3 Key criteria and selection process to use in international market entry
There are different strategies for entering international market. For waitrose, the selection
process is mentioned below - International marketing objectives – This is first step of this process and it helps in
estimating the opportunities for establishing business in a particular country. The
marketing department of Waitrose analyses various countries that are beneficial for
business success. Parameters for selection - Several parameters and criterias are evaluated and analysed
so that Waitrose is able to know what are the basis on which entering into foreign market
can be done. Some of the factors analysed before international expansion are firm's
resources, situation , nature of competition, international environment, etc. Preliminary screening –Preliminary screening's objective is to eliminate the non
potential markets (Ringle, Sarstedt, and Straub, 2012). Different parameters are analysed
before expansion of business like per capita income,size of population, infrastructural
factors, etc. Short listing of markets – Preliminary screening gives list of potential markets and after
analysing them again screening is done for identifying the best markets to expand
business. Evaluation and selection – The best market is selected and company establishes business
in that foreign country. Test marketing - Feedbacks are taken from customers for analysing the needs and
demands of customers. This is helpful for Waitrose to assess overall response of
consumers within the market.
 Commercial production – When all the above steps are cleared, company establishes
business in the selected market.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
P4 Explain various market entry strategies and their advantage and disadvantages
Market entry is a concept used for estimating the ways for entering markets. Different
companies develop strong and effective marketing strategies for establishing good reputation
within marketplace. There are following types of market entry strategies that waitrose can use -
Joint venture: This is kind of business collaboration in which two or more companies
come together for working for a particular project. Profits and loss are experienced by both the
organisations.
Advantages-
 Waitrose will have opportunity of gaining insight and expertise.
 This company will be able to use resources more effectively after entering into joint
ventures (Samiee, and Chabowski, 2012.). High profits are gained when company starts joint ventures in foreign countries.
Disadvantages-
 These are flexible but the main problem is this both the partners do not take initiative to
manage if business fails. The new organisation has to suffer all losses.
 Equal pay is not provided by the company
Buying a Company: According to this strategy, Waitrose can buy already existing
companies and a criteria is selected that matches the expansion criteria. This costs a lot to the
company.
Advantages-
 There are well established strategies and plans with the company. This company has the potential of securing loans and attracting different investors.
Disadvantages-
 The personality and established relationship of business affects the success of company.
 Increase in competition affects future development and growth.
Direct Exporting: According to this strategy, sales are made directly into market by the
utilisation of resources. The main objective of direct exporting is to attain business success.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
Advantages-
 Expansion is cost effective. The main organisation controls services and products in foreign markets.
Disadvantages-
 There is failure if third party is not able to synchronise work.
 It do not help in establish strong consumer base and more efforts needs to be made for the
same.
M2 Apply market evaluation criteria, entry strategies and make recommendations
It is very important for any organisation to evaluate and analyse different factors before
entering into new markets. Foreign markets have lot of opportunities for businesses. Thus, in
context of Waitrose it is leading company of UK and this company has the potential to work
effectively in foreign countries too (Terpstra, Foley, and Sarathy, 2012). There is need for
having an effective market entry strategy that is useful for grabbing success in less time. It is
recommended for Waitrose that it must select the best strategy for entering into new foreign
country.
D1 Critical evaluation of international marketing concept including strategies for various
markets
Waitrose can enter any country as it is well known company. In different countries, this
company will select different route to enter. Mergers and acquisitions can be used for countries
which are developed as that country will have high economy (Wilson, and et. al., 2012). This
type of method can be used by Waitrose in Australian market for complementing the joint
venture strategy that will also be applied in same market. The main benefit of acquisition is this
will help in quickly positioning Waitrose in a new business as there is less time required for
establishing it's presence and developing resources.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
TASK 2
LO 3 and LO 4
(Covered in ppt)
CONCLUSION
From the above mentioned report, it is discussed that international marketing is a trending
concept of business environment. It is concluded that different organisations that are entering
into foreign markets must have the strong strategies so that they can succeed. There are various
routes that a company can select for entering into international business market. Also there are
some benefits and disadvantages of using different routes of international marketing. It is the
responsibility of management to select the best route that will help in grabbing success.

BTEC Level 5 Higher National diploma in Business
Unit 40: International Marketing
Centre Code: 01018
REFERENCES
Books and Journals
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.
Chung, H. F., Lu Wang, C. and Huang, P. H., 2012. A contingency approach to international
marketing strategy and decision-making structure among exporting firms. International
Marketing Review. 29(1). pp.54-87.
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.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
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.
Meissner, H. G., 2012. Strategic international marketing. Springer Science & Business Media.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Ringle, C. M., Sarstedt, M. and Straub, D. W., 2012. Editor's comments: a critical look at the use
of PLS-SEM in MIS quarterly. MIS quarterly. 36(1). pp.iii-xiv.
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.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Wilson, A. and et. al., 2012. Services marketing: Integrating customer focus across the firm.
McGraw Hill.
Zhou, L., Wu, A. and Barnes, B.R., 2012. The effects of early internationalization on
performance outcomes in young international ventures: the mediating role of marketing
capabilities. Journal of International Marketing.20(4). pp.25-45.
Online
Advantages and disadvantages of buying a business. 2018. [Online]. Available
through :<https://www.business.qld.gov.au/starting-business/buying-business/buying-
business-guide/advantages>.