Global vs Local Marketing Approaches

This report explores the differences in product, pricing, promotional, and distribution approaches in various international contexts. It discusses different market entry strategies such as joint venture, direct exporting, licensing, and others. The study also compares home and international orientation using join ventures as a marketing approach to assess competitors at international markets. This analysis helps increase economic scale, marketing, promoting, and utilization of resources, as well as information generation at the international market.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 3 ................................................................................................................................................1
P 5 Overview of key arguments in the global vs local debate ...................................................1
P 6 Product, pricing, promotional and distribution approach differ in variety of international
contexts.......................................................................................................................................2
LO 4 ................................................................................................................................................3
P 7 Various international marketing approaches for organization..............................................3
P 8 Compare home and international orientation and ways to assess challengers outlining the
implications of each approaches.................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
International marketing is the utilization of marketing values to satisfy the varied needs
and wants of different people residing across the nationalistic borders. International marketing is
to set about the marketing action in more than one country. It is frequently know as global
marketing that is designing the marketing mix world and custom-made it according to the
preferences of various country people (Morschett, Schramm-Klein and Zentes, 2015). This study
is based on the Sainsbury. It is the third biggest supermarket chain in the UK. Report will explain
the overview of key arguments in global vs local marketing. It will state the product, pricing,
promotional and distribution approach differ in variety of international contexts.
LO 3
P 5 Overview of key arguments in the global vs local debate
Large multinationals and some small sized businesses depend upon being able to develop
pool of talent which can run flexibly and globally. Local marketing means that successful
international marketers wants the actual ability to think global while performing localised. The
purpose of company is to operate on global scale in today rapidly globalizing world. They faces
many challenges in relation to do so effectively (Mathews and et.al., 2016). Company have to
account for localised differences on other hand by following the goals of operating
internationally on the one hand. The conducts of firms like Sainsbury in global markets has been
affected for time periods to identify that important elements effects the choice among localized
and globalised marketing.
The global marketing is the option among the selling similar goods across all the
limitations and apply of localised marketing methods in relation to respond to regional
differences. The global goods can be contains localised values to provide the goods and services
larger grade of identification. Global marketing can be determined as systematic planning,
coordination and apply of the marketing actions across national wider. All the marketing actions
have to be applied internationally, Sainsbury has to increase to the challenge of handling
environmental differences in relation to culture, regulations and level of economic development
(Skarmeas, Zeriti and Baltas, 2016). The companies can combat disparities relating the wants
and buying attitude of purchasers through globalizing marketing across the worldwide. Global
marketing approach presents financial advantageous through standardization. Through global
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marketing, it makes larger effect because the specific experience and insight acquired through
travelling to international nations. This makes meaningful development which is more beneficial
for those companies who acutal need them.
As compared to, the value of localised marketing is the easy and simple. It refers that
successful international marketers wants the actual capability to think global while performing
localised. Localized marketing is determined as approach where marketing actions of the
company involves actions, interests or functions in more than one nation and where there is some
type of effect or control of marketing functions from external the nation in which products and
services will actually sold. Limitation can not be assessed in geographical modes (Xu and et.al.,
2016). Moreover, aspects such as cultural differences, market structure and many other effects
have to be taken into action when deciding about marketing strategies of pursued of goods and
services. Companies want to consider ways of development their image and promote the new
goods in the profitable and successful manner through deciding to bring marketers to new
nations. The purpose of marketing is to gain profits from the satisfaction of requirements and
wants of human being. The main concern with localised marketing approach is the effects of
outside surroundings of the host nation on the global marketing strategy. If the company operate
localised, so that they are able to make and sustain tasks which will produce hard and effective
outcomes.
P 6 Product, pricing, promotional and distribution approach differ in variety of international
contexts
International marketing mix approach includes utilisation of various marketing devices to
accomplish positive financial outcomes through operation on international or global markets.
These devices involve: product, price, place and promotion (Gomes, Sousa and Vendrell-
Herrero, 2017). Global marketing mix strategy can take into action legal and socio-cultural
conditions in every nation to which it is directed.
International Product Approach:
Global product approach covers all judgements which relate to goods and services
offering by company in the global market. It consists decisions on which goods will be offered in
each nation market which are based on the customization and new products development.
Companies like Sainsbury have four options for upcoming global marketplaces such as changes
in goods for each localised market as per to local needs, innovation strategy, extension of home
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grown product approach to international marketplaces as well as selling the same goods global
(Kladou and Mavragani, 2015).
International Pricing Approach:
Global pricing is frequently the most important and complex issue in global marketing. It
is the essential to total of all monetary and non-monetary assets, so that consumer has to spend in
relation to acquire the advantages it gives. The leading pricing decisions comprises in the global
marketing adopting the Sainsbury. Decisions involve determine general regulations for setting
prices and utilising prices reduction, the choosing of terms payment and possible utilise of
counter trade, find the basic price, its structure and system of rebates and refunds the company
offer.
International Distribution Approach:
Global distribution procedure deals with good managing and distribution, the passage of
ownership and purchase and sell negotiations. Marketers can never believe which it is the same
as the domestic one. Many distribution activities exist in retailing and wholesaling, size, patterns
and direct marketing as well as resistance to modification influence disposition of distribution
channels (Shin, Noh and Lee, 2018). The aim of distribution approach is to reduce attribute,
impermanent and possession barriers to distribution separating producers and final consumers.
Global logistics plays leading role in international sales and manufacturing activities.
International Promotion Approach:
International promotion approach includes transferring info to new expected purchasers
about the firm, its goods in relation to make them to purchase these goods. The utilization of
devices required to accomplish objectives depends on elements like promotion's aim on global
market, financial resources and experience, attitude to internation goods, competition on
international market, nature and quality of goods as well as kind of consumers (Dikova, Van
Witteloostuijn and Parker, 2017). There are some factors consider in while selecting the
distribution channels like specific target market within and across nations, financial and
organizational commitments, control of length and features of the channels.
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LO 4
P 7 Various international marketing approaches for organization
The adoption of entry strategy is one of important decision area in international
marketing. This judgements need the global marketer to consider elements like cost, risk and
control. A rationale marketer will always need their programmes to obtain less operational costs,
low degree of risk and exercise larger control. The entry approach adopted by global marketers
long mode to shape their programmes like holistic approach can be applied if marketers make
reliable and rewarding decisions (Kladou and Mavragani, 2015). There are many factors
identified for entry strategies to involves such as objectives and expectation of company, size
and its financial resources as well as patterns of engagement in other international markets. In
this context, Sainsbury needs to follow the different international marketing approaches by
determining all the factors of company. These approaches also called as entry market strategy
adopted by the organization while entering into international marketplace.
Exporting: It is the most famous and essential approach in developing nations in which
government take active portion in business ownership. This approach includes direct and indirect
exporting. Company sells their goods to global consumer in the direct export. In this case,
companies like Sainsbury is starting to view international markets as source, long term chance
for sales and profits. Indirect exports implies selling to domestic consumer (Gomes, Sousa and
Vendrell-Herrero, 2017). These consumers can be companies who sell the goods in the global
markets. This international marketing approach help to increase economic of scale, marketing,
promoting and utilisation of resources as well as information generation at the international
market.
Joint Ventures: It is the another approach of entering into global markets. It is also very
popular in developing nation in which international companies looks for localised organizations
with that it can pool resources together to run programmes in the host nation (Gomes, Sousa and
Vendrell-Herrero, 2017). Joint ventures are special form of partnership which includes the
innovation of third independent managed company. Risks and profits are shared equally
normally.
Licensing: It is the relatively refined management where company transfer the rights to the
utilization of goods and services to the another company. It is specifically useful approach if the
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buyers of the license has comparatively huge market share in the market in which company want
to enter. Licenses can be for marketing or production.
In this context, Sainsbury can be followed the joint venture which is very beneficial for
them in relation to entering into international market. This international marketing approach help
to increase economic of scale, marketing, promoting and utilisation of resources as well as
information generation at the international market (Xu and et.al., 2016). This can aid to increase
the market and its growth as well as development of business in the international markets.
P 8 Compare home and international orientation and ways to assess challengers outlining the
implications of each approaches
International Marketing Orientation:
Company involvement in global marketing procedure with the different attitudes which
are known as international marketing orientations. For that, there is framework that is EPRG
consists of four steps in international operations evolution such as ethnocentric, regiocentric,
polycentric and geocentric orientation.
Difference between home and international orientation:
Basis Home Marketing Orientation International Marketing Orientation
Meaning It refers to marketing within the
geographical limits of the country.
As compared to, international
marketing means to marketing
activities are extend over the
geographical boundaries of nation.
Serving Areas There are very small areas for
serving the products.
As opposed to that, there are very large
areas for serving the goods.
Risk factors There are very low risk affected
while company is done the home
marketing (Mathews and et.al.,
2016).
Besides that, there are very risk factors
affected while company is done the
international market.
Nature of
consumer
There are almost similar consumer
in the home marketing.
As compared to that, variation in
consumer taste and preferences in the
international market.
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Requirement of
capital
In home marketing, company has
less requirement of capital.
In international marketing, company
has required large amount of capital
(Skarmeas, Zeriti and Baltas, 2016).
Utilization of
technology
There are limited use of
technology in home marketing by
company.
As opposed to that, there are sharing
and utilise of latest technology in
international marketing by firm.
Ways of assess the competitors according to international marketing approach:
Sainsbury can be adopted the joint venture international marketing approach which help
to assess competitors in the international marketing. Therefore, company utilise the direct
exporting which help to assess the risks and profits while entering into international markets.
Through this approach, company identify the competitors, its goods, prices, promotional
activities and distribution channels in the global market. This can help to company for improving
their marketing activities and developing the marketing strategies for promoting the goods and
services within the international markets (Morschett, Schramm-Klein and Zentes, 2015).
Through, company focus on increase the sales and profits. This international marketing approach
help to increase economic of scale, marketing, promoting and utilisation of resources as well as
information generation at the international market. This can aid to increase the market and its
growth as well as development of business in the international markets. This international
marketing approach is very helpful for growth and development for future time.
CONCLUSION
This report has summarised that arguments in the global vs local marketing. It can be
concluded that Product, pricing, promotional and distribution approach differ in variety of
international contexts. It can be discussed that different international marketing approaches as
market entry strategies like joint venture, direct exporting, licensing and other strategies.
Furthermore, study has completed that compare home and international orientation and
utilisation of join venture as international marketing approaches for assess the ways of
competitors at the international markets. This international marketing approach help to increase
economic of scale, marketing, promoting and utilisation of resources as well as information
generation at the international market.
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REFERENCES
Books and Journals
Dikova, D., Van Witteloostuijn, A. and Parker, S., 2017. Capability, environment and
internationalization fit, and financial and marketing performance of MNEs’ foreign
subsidiaries: An abductive contingency approach. Cross Cultural & Strategic
Management. 24(3). pp.405-435.
Gomes, E., Sousa, C. and Vendrell-Herrero, F., 2017. International marketing
agility. International Marketing Review.
Kladou, S. and Mavragani, E., 2015. Assessing destination image: An online marketing approach
and the case of TripAdvisor. Journal of Destination Marketing & Management. 4(3).
pp.187-193.
Mathews, S. and et.al., 2016. Internet marketing capabilities and international market
growth. International Business Review. 25(4). pp.820-830.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Shin, M. M., Noh, E. J. and Lee, J., 2018. Study abroad programs as a service convergence: an
international marketing approach. Service Business. 12(2). pp.253-275.
Skarmeas, D., Zeriti, A. and Baltas, G., 2016. Relationship value: Drivers and outcomes in
international marketing channels. Journal of international marketing. 24(1). pp.22-40.
Xu, H. and et.al., 2016. Managers' Perceived Risk, Experiential Knowledge, Marketing
Capability and International Performance: A Study of Chinese International
Enterprises. Journal of marketing development and competitiveness. 10(1). p.53.
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