International Marketing and Global Market Entry

This assignment discusses various aspects of international marketing, including trends, developments, and directions for the future. It covers global marketing management, product-country images, and international relationship marketing. Additionally, it touches on emerging market multinationals' entry mode strategies and configuration/coordination of international marketing activities. The document also provides online resources related to centralized and decentralized approaches in international market entry and reasons companies go into international marketing.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Presenting the scope and key concept of international marketing.........................................1
P2 Explain the rationale for market internationally and describe the routes to market..............2
P3 Presenting the key criteria and selection process to enter into international market.............4
P4 Different market entry strategies with pros and cons............................................................5
P5 Presenting global verses local debate....................................................................................7
P.6. 4P's of marketing theories....................................................................................................8
P.7. Explain and analysis various international marketing approaches that Hawthorn can
adopt..........................................................................................................................................10
P.8. Compare home and international orientation and ways to assess competitors..................11
COCLUSION.................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is an application of marketing principles in more than one
country. It is also known as global market. The present report main aim is to provide the deep
knowledge related to international marketing and mainly focus on how marketing contributes to
business strategies in the internation market. The chosen company for this report is Hawthorn
which is one the most leading retail company in world. The firm offer different variety of
products to their customers at cheap rate, that is why the company wants to establish its unit in
Indian market in order to maximizes its profit margin.
Report describe the scope and key concept of international marketing and also describe
different routes to market that organization can use. Report further evaluate the key criteria and
selection process to use in order to enter into new market. It also describe different marketing
strategies with their pros and cons. Report present global versus local debate and how price,
product and pricing approach differ in variety. Further report also compare home and
international orientation and ways to assess competition and describe the implication of each
approach.
P1 Presenting the scope and key concept of international marketing
Scope of international Marketing: The scope of International market for Hawthorn is
wide and its scope are mentioned below:
 Imports - Exports:: Importing the products for a brand is exactly do the same work as
the it does for the remaining whole country. Company buy different products in order to
sale it to a potential market and they have gathered a lot of work and passing through
tough times. But many of the times, company take helps from import in order to improve
their production level (Scope of international Marketing, 2018). Export is another scope
such that Hawthorn export their finalize products to international market where they can
earn or generate lot of revenue. Therefore both import and export help in order to expand
their current business.
 Joint venturing: It is the name of collaborative association of two main brands such that
the company gives birth to many new firm so that they work individually and they pursue
the goals of a company. Many times, joint venture comes, when a local company of of
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great interest and can invest in order to generate more revenue. Therefore, joint venture is
consider another important scope for the international marketing.
 Fully owned manufacturing: the scope of the international market comes into play
when the company take full control over both production as well as promotion in its
target market. For example, Hawthorn wants to expand its business in Indian market and
this lets the brand to work for long term interest in order to attain defined goals.
Key concept of International marketing:
 Domestic Marketing: Marketing a product in domestic level is also consider the concept
for international marketing. Therefore, the methods which are used for global level are
also used for domestic marketing (Burns, Bush and Sinha, 2014). For domestic
marketing, the company needs to collect the data about the customers behaviour such that
what is the use of the new product and also formulate the strategy in order to promote the
product.
 International Marketing: It is the most prime global marketing concept which means
that the products are used in international market and through different promotional
strategies they gain a huge response and can spread into new market in order to generate
the revenue.
 Closed loop Marketing: it is a continuously monitoring the response of their customers
to the techniques of marketing and it is quite important to determine the exact need of the
customers and n order to fulfil those needs company must ensure the products into a
market. This type of international marketing are not as much important as the brand
grows bigger in size that what the target market demands from them.
 Targeting demographics: in order to increase the potency of the market strategies,
company should target demographics and its success is actually depend upon the target or
type of population such as Hawthorn is dealing with retail sector therefore it wants to
expand its business in Indian market (Falahat, Knight and Alon, 2018). For this purpose,
the company needs to provide those products as per the demand of their Indian customers
with all age group people.
P2 Explain the rationale for market internationally and describe the routes to market
There are so many reason to expand its current business at internation or global level and
some of them are as follows:
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 Competitive advantage: Hawthorn also expand its current business at Indian Market in
order to gain the competitive advantage such that by growing into another business
market helps a company to gain high competition market. As a result the market share of
the company automatically rises which further help to enhances the profit maximization
of the company. Therefore, to move at international market, it is quite necessary to gain
more competition in global market.
1. Increase the growth rate: By expanding the current market of the company will also
help to achieve the growth rate of the company. Hence the company automatically raise
the growth rate and after producing the best output as per the demand of their customers
will help to raise the actual performance of the company in other market (Reasons to go
into international market, 2018). Therefore, it is quite necessary for Hawthorn to expand
its current business in next level.
 Adapting demand fluctuation: In order to adopt the demand of their customers is
another reason for Hawthorn to expand its current market in Indian Market. Therefore, to
produce those products which are the needs of the customers is quite necessary for the
company and to determine the basic necessity of their user and then fulfil those needs are
quite important to expand its current market.
Different routes of internation marketing: There are so many entrance through which
the company can enter into Indian Market and some of them are as follows:
 Franchising: It is one of the most common way to enter into new market but this is
successful for those company who have brand image in market (Katsikeas, 2018). But in
the case of Hawthorn it is not possible because the company is small scale local company
and franchising is good thing for those who knows the ways to break into new market.
 Direct exporting: It is another simple method where one business can direct sell out
things or export their own products into other country. It is also not very expensive
method while other methods are costly therefore Hawthorn can uses this method through
which all the products are export into other country with simple process and the only
extra charges occur is shipping charges.
 Partnership: Though it is not used now a days because partnership is consider one of the
most expensive method and even the profit which is earn should also be share in equal
ratio which is not beneficial for the company (Surdu, Mellahi and Glaister, 2018). But on
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the other side, if the partner is good and then they are ready to invest on the foreign
country then it will be helpful for them to use this method to enter into new market.
 Joint Venture: It is a partnership between two company or two people where the
company also share the profit as well as loss ratio equally. Therefore it also not used by
Hawthorn because it is small scale company which do not work together with other
company in order to achieve the success.
P3 Presenting the key criteria and selection process to enter into international market
To enter into new market, Hawthorn should identify the market of Indian and it can be
done in five basic process and this are mention below:
Identification: It is the first step that is used in order to enter into new market. Country
identification means that to expand the current business by analysing the some points such as
political condition, social and economic condition of the country should be stable so that if the
business is expand into further level, then it will easily export their current business into other
market. For example, Hawthorn is also wants to expand its current business into Indian Market
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Illustration 1: Market entry procedure
(Source: The International Market Entry Evaluation Process,
2018)

because the actual situation of the country is stable and if the business is expand then it will
increases the growth rate of the business.
Preliminary Screening: it Is the second stage which should be look more serious and
must go through preliminary screening. Under this, there are many factors comes which should
be taken into consideration while identify the country (Agarwal and Wu, 2018). In the context of
Hawthorn, it wants to enter into Indian Market therefore it is quite necessary to determine the
stability of the country in the terms of political, economical, social status. The political condition
of the country is stable therefore, there is a increase chances of growth competitive advantage
and market share as well.
In- depth Screening: the third stage comes, in- depth screening which means that the
detailed research should be done and more data collection which help to determine the exact
condition of the country. If the micro economic factors are analysed by Hawthorn, then company
should finalize how the product should be marketing such that what are the new marketing
techniques should be used in order to let people know about this offer. Moreover, this
information should be collected on the basis of segmentation, targeting and positioning.
Final selection: This is the fourth stage under which manager of the company can reflect
upon strategic goals and look for a match in the nation. Under this, the company should
determine the competitors or similar domestic companies which are already entered into new
market (Charter and Polonsky, 2017). Then the manager of the company should short listed some
places where the company wants to be established in order to make final decision. As if the final
decision is taken where the company needs to be establish its more unit then this step will be
helpful in order to finalize the country where it wants to introduce. As Hawthorn can chooses
Indian Market to be establish because of having stable marketing condition.
Direct Experience: Personal experience is not good enough in order to determine the
exact and best place such that manager of the company should also be visit many places in order
to determine the exact culture and business practices which are run in that area. But in the case of
Hawthorn, it is not possible because the company is small scale business and direct experience is
not possible because it is costly and not affordable by the manager of a company.
P4 Different market entry strategies with pros and cons
There are so many market strategies which a company may chooses and some of them
are as follows:
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Direct exporting: It means that selling a products directly into the new market.
Moreover, many company also establish some sales program or distributors in order to represent
them in that market. At that time, agents and distributors are work closely in order to make the
product more popular in new market. Even they also hire some staff for further improvements.
Franchising: it is consider the best method for those market which are in rapid
expansion. This mode of entry work well for those business who are dealing with food products
(Schlegelmilch, 2016). Therefore, two business are required for considering this model and the
company should be brand image so that it will help other company for their future competition.
Joint venture: It is another form of partnership, where the entire management are in the
control of some another party. It means that two company are agree to work together in a
particular market either it may be geographic or demographic in order to create a third party
undertake. Hence risk as well as profit are also shared at equal level.
Acquisition: many companies chooses this option in order to enter into new market
because to acquire other company is one of the most common strategy in order to increase the
market share (Leonidou and et.al., 2017). But is done only If the company has brand image as
well as good market share therefore, they can easily acquire small business who are in loss so
that it help them to raise their current status and no other legal formality is required.
Among all, direct exporting is considered the best option for Hawthorn because the
company is small scale and therefore, choosing this option will be helpful for them in order to
direct sell their products into Indian Market. This method is also not as expensive as other
method are and that is why the quoted company chooses this method.
Basis Advantages Disadvantages
Direct exporting  High degree of controlling.
 Better protection for
trademark, patents
(Marketing, 2015).
 Easy and simplest method
among all.
 Requires more time, energy.
 A person himself is
accountable for whatever
happens
 not able to respond to
customer communication
Franchising  Risk of business failure is  Cost of investment may be
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reduces.
 Gives a support such as
provide training sessions to
inexperienced person.
 Help to establish better
relationship with suppliers.
higher as expectation
 requires high legal action
which is not affordable.
 Franchises are regulated by
state and federal laws and
other documents are
required.
Joint Venture  Using this method will be
helpful for in order to grab
the opportunity of new
insight and expertise.
 Help to provide better
resources as compared to
other method.
 It is not flexible.
 Clashes of cultures is another
disadvantage (Usunier,
2018).
 Limited outside opportunity.
Acquisition  Help to increases the value
of efficiency for the new
entity.
 Tax benefit and it decreases
the risk of financial losses.
 Loss of experience workers.
 Distraction form operations
and poorly matched partners.
P5 Presenting global verses local debate
According to De Mooij (2018) global marketing is the world wide scale and help in
taking the commercial advantages in order to meet out their different objectives. The market is
also related to providing the basic necessities of their customers at nationally, internationally and
at global level. On the other side, international marketing is the export, franchising, joint venture
and many other entry options such as Hawthorn is also wants to expand its business at global
level in order to establish its new unit in some different country i.e. India. However it has been
critically evaluated by Gillespie and Riddle (2015 )that global marketing leads to creates some
differences between customer needs, wants and usage of pattern. Moreover, it also creates
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differences in customer response for marketing mix elements. Such that to expand a business at
international level it is quite necessary to adopt best marketing techniques which help them to
reach large number of customers at very short period of time.
On the other side as per the views of Keegan and Green (2015) local marketing is quite
simple as compared to global marketing. It is a place where the marketing activities of an
organization that actually includes those operations which are run at local level and the same
kind of influence or control is affect the business. In this market the company sold their products
at local level and it also did not lead to any differences between the cultures. The marketing
strategy are also not as much important as it is needed for global marketing. The biggest benefit
of local market is that the producer know the actual needs of their customer and in this way they
produces those products as per their demands. For example, Hawthorn is actually dealing with
retail sector and operates its unit at local level therefore the company will easily determine the
actual needs of their customers and can maximizes their production level. Therefore the local
market is actually based upon the small business only because they needs to invest small amount
of money and it is actually helpful for them in order to provide the exceptional customer
services.
Therefore, both global as well as local market is helpful in order to maximizes the profit
of the company but global level marketing helps to raise the market share while on the other side,
local market is actually does not support the expansion of the business at next level of success.
They both require different marketing strategy but global market required highly develop
strategies while on the other side, local market uses only advertising and other simple
promotional tool in order to let people know about their new offers (Adams, 2017). Global
market leads to create the differences between belief, culture but local market did not.
International marketing is actually helpful for those companies who have their brand image in
market and further it also leads to creates many obstacles for developing the business into some
other country. On the other side, local market is quite simple process but does not help to
establish its unit into new market because this type of companies are based upon small business,
therefore this are not requires to invest high amount to expand its business at global level.
P.6. 4P's of marketing theories.
The four P's of marketing is the heart of company. This is also known as product mix. It
is the tool that is used to promote the brand. These elements of 4P's are combined together to
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meet the marketing goals and objectives in very effective manner. This included, product, price,
place and promotion. It is very important for company to use this tool when organisation is
planning to determine the offering of products to customers in international marketing. Hawthorn
company is going to expand there business in India (S.M and et.al., 2016). In international
market, 4P's of marketing tool is used in order to achieve positive financial results by Hawthorn
operating on international or global markets.
Here are the complete description of 4P's of marketing theories are as follows-
Product- This is the most important element in 4P's of marketing. Products are those
elements that is the key to achieve success in both international and local market. It is very
important that the product of company should able to meet the needs and demands of customers
in strategic manner. In international market it is very important that the product of company
should able to meet the needs and demands of the target customers. There are number of factors
that affects the product of the company which are background, religion, purchasing habits and
personal disposable income. Hawthorn company is going to expand there business in India, thus
company will offer there products (Clothes) according to needs and demands of customers as
well as according to there culture, background and tradition. The culture of India is quite
different from the culture of UK (Morschett, Schramm-Klein and Zentes, 2015).
Price- This is the most sensitive element of a business or company. Price of the product
should be valued for the money that customers are paying. The setting of the price in
international market is quite different and complex task as compare to local market price.
Hawthorn company is going to expand its business in India or international market so they have
to consider are cost of transport, tariff, import duties, fluctuation in exchange rate, personal
disposable income of target market, currency and the general economic conditions of country.
The best strategies that is very efficient for Hawthorn is penetrating pricing strategy (Samiee,
Chabowski and Hult, 2015). Company will set a low price of the product in order to raise the
sales as well as market share. Company will increase the prices after the product has captured the
market.
Promotion- This is one of the most essential element in 4P's of marketing. After the
setting of product and price, company has to decide the promotional tools and techniques that are
used by the organisation to promote the product in international market. Hawthorn company can
either adapt or standardize the promotional strategy and message. There are various factors that
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company should kept in mind before selecting the techniques and tools of promotion which are
language, culture, religion practices, attitude and belief of people (Papadopoulos and Heslop,
2014). It is not sure that the promotional strategies that are getting success in UK will be also be
successful in India. Hawthorn company should use to promote there products by pasting banners,
advertising on local media, social media etc.
Place- The is another most essential element that is very important for the company or
businesses. This element is concerned with the distribution of the product to right customers at
right place at right time. Hawthorn company is going to expand there business in India and this
country there distribution channels are well-defined and it moved in a chain from producer to
wholesalers and into retailers for customers to purchase from. It is fact that if the products of
company is not able to reach to customers than it is useless. On the other hand, Hawthorn
company should also use social media so that it become more easy for them to distribute the
goods to large customers.
P.7. Explain and analysis various international marketing approaches that Hawthorn can adopt.
International marketing is a type of marketing on a global scale taking commercial
advantages of international operational differences, similarities as well as opportunities to meet
the international goals and objectives. Hawthorn company is also going to expand there business
in India so organisation needs is the defined framework for their global marketing that can grow
with them in both local and international markets (Schmid, Grosche and Mayrhofer, 2016).
There are two main approaches that are very important for the company to adopt in order to
achieve the desire goals and objectives are- Centralized Approaches Decentralized Approaches
Centralized Approaches- This is the approach where the team of marketing which are located at
central office of headquarters makes all the decision of marketing and they are also responsible
for executing planning as well as organizing all the campaigns and programmes of marketing.
This approach is useful for the Hawthorn company when the organisational department of
marketing is highly skilled, competent as well as they have full experience of working with the
international markets. Moreover, company have to hire the experts in international market to get
the complete information of the market as well as localizing the materials at the right level. In
addition to this, if Hawthorn company adopt the centralized approach of international marketing
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than they have to focus the capabilities of in-house marketing as well as scalable procedures
because it will ensure more control over marketing. It is quite expensive approach as company
have to work with so much care as well as they have to hire experts and professionals (Kotabe
and Helsen, 2014). The drawback of this approach of international marketing is that its growth is
slow. For example, this approach is useful for the business of military because they have
centralized structure of company.
Decentralized Approaches- This is the approach where the functions of marketing and
decision making activities are essentially pushed out into the field. The primary intention of
adopting this approach of international marketing is to motivate and support the local employees
or staff of marketing department. The materials of marketing are often produces as a template
that local respondents or marketer could utilize as a beginning point for translation as well as
localization (Centralized and Decentralized Approaches, 2016). The control of the entire
functions and operations are remained in the hand of the company itself. On the other hand, this
approach of international marketing is useful or best when the product or goods of company are
in heavily regulated sector like retail, food industries. The product of company required to be
significantly localized to sell them in other market and it has a powerful and a strong bias of
market towards local language as well as local connection of sales (Knight, 2015). Thus, these all
condition are suit for the Hawthorn company and it will be the best approach to adopt in order to
expand the business in international market. This approach also does not need highly trained and
knowledgeable employees and it required limited resources. For example, this approach is
mainly used by the food chain industries. Thus, Hawthorn company should also use this
decentralized approach for expanding the business in international market because it does not
require too many efforts and resources which is one the biggest advantages of adopting this
approach than compare to centralized approach of international marketing.
P.8. Compare home and international orientation and ways to assess competitors.
Market orientation refers to the philosophy that focus on identifying the needs and wants
of customers in the target markets (Hult and et.al., 2018). It is the philosophy of company where
marketers emphasized on meeting the needs as well as its desire of customers with the help of
product mix. Home orientation means when company's marketing manager emphasized or focus
on identifying as well as discovering the needs and demands of local customers for example the
customers of UK whereas international orientation means when the company's marketing
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manager emphasized or focus on identifying as well as discovering the needs and demands of
global customers for example the customers of India. Home orientation is not a tough or complex
task as it does not require heavy market research, R&D and tools for promoting the products and
identifying the needs but international orientation is very difficult and complex task because it
required heavy market research, lots of resources and fund. On the other hand, highly skilled and
knowledgeable staff is required for the achievement of the desire goals and objectives in
international orientation whereas in home orientation it is nit necessary (De Mooij, 2015).
Apart from this, for attaining success in international market it is very important that Hawthorn
company that they have to access over competitors to win the market. Here are some ways to
access competition in global market which are a follows-
 By understanding price of competitors products they are offering in the market.
 By launching or introducing innovative services and complete unique services as
compare to competitors.
 Find the base of customers as well as understand the level of expectations of customers
before launching products and services.
COCLUSION
By summing up above report it has been concluded that globalization plays an important
role in every business. The scope of this market is wide and also contributes to business
strategies and also describe the rationale which helps to expand the business at current level.
Report also concluded the key steps an selection process which are also used for the considering
to enter into new market. Moreover, for Hawthorn, direct exporting is consider the best market
entering strategy because it is quite easy and less costly as compared to other methods. Report
further concluded the global and local market and also describe how the product, price and
promotional approach is differ in variety. In addition to this, it explain different approaches of
international marketing that help to expands their business at global level. Report also compare
the home and international orientation and the ways to assess competitors that are outlining the
implications for each and every approach.
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