Scope and Key Concepts of International Marketing

This report discusses the scope and key concepts of international marketing, including the reasons for organizations to enter international markets and various market entry strategies.

International Marketing

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Scope and key concept for international market.....................................................................3
P2 Rational for an organization to want to market internationally and various routes to market4
TASK 2............................................................................................................................................5
P3 Key criteria and selection process in deciding which market to enter....................................5
P4 Various market entry strategies along with its advantages and disadvantages.......................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Every business dream of for taking its business at a higher level. They try their best to
bring it to international market. The small companies tries its best to become a medium scale
business, the medium scale business tries its best to become a large scale business. The
companies which are operating in the international markets have the production and operation
activities at a huge scale. Taking the business at international market is not an easy task; business
requires evaluating all the risks and opportunities which are associated with international market.
But huge risk brings up the huge profits also. The companies which internationalize their
business gets huge profits have they are selling their products and services at a global level
where the customer base for the company gets increase. For reference purpose this report has
taken an example of a company, marks and Spencer. Marks and Spencer is a British
multinational company which is specialize in selling the products of fine clothing, home products
and food products. The company was founded in the year 1884 by Michael marks and Thomas
Spencer.
This report discusses about the scope and key concept for international market, routes for which
an organization can internationalize its business. The report also includes the key criteria and
selection process to take when considering to international market. Apart from this the various
strategies which the organization uses to enter into the international market is also been stated
into this report.
TASK 1
P1 Scope and key concept for international market
The scope of the international marketing is as follows:
Export: In international marketing the organization gets an opportunity to sell its product and
services to the international border also. Its enable the organization in increase in the customer
base, also it increases the sales and profits for the company. As in the case with marks and
Spencer the company operates on an international market where it manufactures its products at
one place and sells it to the international market (Akaka, Vargo and Lusch, 2013). It performs
the export activity.
Import: The goods and services are also gets import from one country in a view to sell it. The
countries like India import the products of Marks and Spencer in a view to sell them into stores.
Import activity is also very much necessary in international market as one country has to buy the
products in a view to sell it and to complete this international marketing concept.
Re- export: It refers to an activity where the semi finished goods are purchase from one country
then it gets process to finished goods. Then after processing the semi finished goods into finished
good the organization sell goods through exporting it (Baack, Harris and Baack, 2013).

Management of International operation: The international business has to take care of
operations and production activities which are taking place at international level. The proper
management is required to operate at an international market. As in the case with marks and
Spencer, the company needs to operate its marketing and selling activities abroad. They also
require accommodating all the required resources and production activity worldwide. The
company also requires monitoring the performance and has to match it with standard
performance which the company has set for themselves.
Key concept of international marketing
International marketing is concern with a business which is operating at an international
level. The concept of internal marketing includes 5 aspects, which are as follows:
Production concept: In this the production activity is performed at a huge volume. The huge
volume of production takes place so as to cater the needs and wants to huge market which
includes the both international and domestic market (Berthon and et. al., 2012).
Product concept: In this the product which is manufactured by the company are easily and
widely available and accessible to the reach of the customers.
Selling concept: The products which are produce by the company are selling at the domestic plus
the international market. Marks and Spencer sells its product in around 1463 stores which
includes both national and internal markets.
Marketing concept: The marketing activity which includes the advertising and promotion events
of the product and services has to perform at international level.
Societal Concept: This concept seeks focus on customer satisfaction. The products or the
services which is been produced by the company is produced in such a way that they cater the
targeted market properly.
P2 Rational for an organization to want to market internationally and various routes to market
The reasons for the organization to expand their business international may include:
Profit Potential: The potential of the organization for earning profit gets increase as the
customer base for that company has got bigger. Although working in the international market has
many risks but these risks gives a huge profit potential to the company if everything gets in favor
of the company (Cateora and et. al., 2020). Similarly is the case with marks and Spencer, the
profits of that company gets double when it introduces itself at the international markets.
Large market size: The market size of the company gets large through introduces its business at
international level. The brand image and awareness of the company gets increases and it start
occupying the large market share and growth.

Stability through diversification: The organization faces the stability through when it gets itself
diversified into many markets. The company’s profits and growth remain stable through this. If
the performance of the company marks and Spencer is not stable or good in one market, but
whereas the company is performing very good in another market the loss would automatically
gets nullify. Diversification creates stability into the performance of the company it enables or
increases the power for survival.
Growth rate: The growth rate which the company may experience after internationalizing itself
would be tremendous (Felzensztein and et. al.,2014). As the customer base for the company gets
increase, the brand image and awareness would also get an increase simultaneously. It enables
the company in bringing an increase in its growth rate.
Proximity of markets: The reach for the market of Marks and Spencer has got an increase after
internationalizing its business. The proximity of the market gets increase which enables the
company to bring up the new product or any service into the market with an ease as they already
have set up strong supply chain and distribution channels.
Technology reach: As when the company goes to international markets, the technology which is
used by the company also gets upgrade. The technology plays a vital role in bringing all the
activities and operations together as all the data and values can get store into the system. As the
company reaches out to many markets the technology which it may can encounter or upgrade
would get increased. This works as a benefit for the company.
TASK 2
P3 Key criteria and selection process in deciding which market to enter
The following are the criteria which the company Marks and Spencer used for selecting
the international market to enter:
Environment and market analyses: The Company analyzes the external environment of that
market; they performed it through conducting the pestel analyses on it. In the environment
analyses they evaluate the:
GDP: It tells about the economic condition and situation of the company.
Political factors: Which tells about the rules and regulation that market has. These rules
and regulations are been set by the government itself of that market.
Legal factors: The legislations and legal laws prevailing into the country.
Analysis of competition: The Company also analyses the competition which is being prevailing
into that market (Fletcher and Crawford, 2013). In that they analyze the main competitors and
evaluate their market share. In this the company also evaluates the features and characteristics

which can make their product different from the other available competitions like price, quality,
and features and so on.
Distribution channels: The distribution channels are the modes or the channels from which the
organization delivers its product to the ultimate customers. In this the company evaluates the
local distributors and the various channels which the company can adopt for efficient supply of
goods and services.
The organizations also follow a set of selection process before targeting a particular
market to enter, and the process is as follows:
Country Identification: The organization first selects the country in which they can operate or
expand their business. In this the organization can consider a general and a basic over view of
that country (Paliwoda and Thomas, 2013). In that over view, basic idea can get like the culture
and values which the country has, their heritage, their taste, demographic and economic factors
and much more.
Preliminary screening: At this stage the company undergoes through a deep understanding of
the countries which it has listed. In this stage they analyze about the exchange rate, currency
rates, the policy which is establish by the government and the legal laws. Here the company
(Marks and Spencer) evaluates that are these policies or the rules in the favor of the company or
not.
In depth screening: In this the organization performs the in depth screening of the country. In
this they perform the marketing mix, the opportunities, the distribution channels, competitors,
taste and preferences of the market and much more.
Final selection: At this stage the company, Marks and Spencer, form the available alternatives
selects the market which it believes there they can have more profits and growth. The market
which is been selected by the company should matches with the features and opportunities of the
company itself. Then after matching or analyzing the markets, the company finally selects the
most appropriate market.
Direct Experience: The Company at this stage, the manager of the company or the head should
directly visit to that nation and should experience the culture and market of the country (Tan and
Sousa, 2013). This would bring the more clarity into the mind of company head that whether it is
a good idea to invest in or not.
P4 Various market entry strategies along with its advantages and disadvantages
Various market entry strategies which an organization can use for internationalizing their
business can be as follows:

Exporting: It is the strategy where the company manufactures the goods and services in their
domestic market only and then they sell their goods to other countries. It is considered as a most
traditional form of entering into market.
Advantages: As the manufacture process is done at home country the risk for any mistake
in manufacturing gets less (Terpstra, Foley and Sarathy, 2012). It also gives an opportunity for
forming a base for company so that they can know the procedure of the next country. It also
lowers the operational risks
Disadvantages: Any legal problem during the commute of products or goods can create a
big problem for the company. Also the company has to set up a proper distribution and supply
chain method before entering into the market.
Licensing: It is an agreement between the parties, where the firm or the organization gives the
permission or the rights to use their goods and services (Yang, Su and Fam, 2012). Licensing can
be used for marketing and production of the product or the service.
Advantages: It reduces the stress of exporting the products as now the products are
manufactured in other country. It also helps in expansion and diversification of business.
Disadvantages: The Company can face risk with regard to the product quality
manufactured. The licensing is for limited time period only, later it needs to get renew
accordingly.
CONCLUSION
From the report discuss above, the scope and concept of international market has
mentioned. Scope may include export, import, re export and etc whereas concept includes the
production concept, product concept, selling, marketing concept and etc. There are various
reasons for an organization to get itself internationalize some of them includes profit potential,
large market size, stability, growth rate and etc. The organization can use various strategies to get
an entry into the market; these strategies may include licensing, export, franchising, joint
venture, partnership and etc.

REFERENCES
Books and Journals
Akaka, M. A., Vargo, S. L. and Lusch, R. F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of International Marketing.
21(4). pp.1-20.
Baack, D. W., Harris, E. G. and Baack, D., 2013. International marketing. Sage.
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.
Cateora, P.R.,and et. al., 2020. International marketing. McGraw-Hill Education.
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.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
Paliwoda, S. and Thomas, M., 2013. International marketing. Routledge.
Tan, Q. and Sousa, C. M., 2013. International marketing standardization. Management
international review. 53(5). pp.711-739.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Yang, Z., Su, C. and Fam, K. S., 2012. Dealing with institutional distances in international
marketing channels: Governance strategies that engender legitimacy and
efficiency.Journal of Marketing. 76(3). pp.41-55.