International Marketing - Assignment

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Scope and key concepts of international marketing.............................................................1
P2. Rationale for Rapha to market internationally and various routes to adopt.........................3
TASK 2...........................................................................................................................................6
P3. Key criteria and selection process to use when considering international market to enter. .6
P4. Market entry strategies, including advantages and disadvantages of each ..........................7
TASK 3..........................................................................................................................................11
P5. Overview of key arguments in global versus local debate and implications......................11
P6. Investigate how product, price, pricing and promotional distribution approach differs in
international contexts................................................................................................................11
TASK 4..........................................................................................................................................13
P7.Various international marketing approaches that Rapha can adopt.....................................13
P8. Comparison between home and international orientation and ways to assess competitors
outlining implications of each approach...................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
International Marketing (IM) or Global marketing is the application of marketing
principles and activities coordinated and integrated across multiple country markets to satisfy
varied needs of people. It is the export, franchising, joint venture or direct entry of an
organization's product and services into another country (Cadogan, 2010). These are the
performance of business activities designed to plan, price, promote and direct flow of an
organization's goods and services to consumers in multiple countries for earning profits. The
report on international marketing is prepared with purpose of understanding how international
marketing contributes to business strategies and ways to enter into international markets and be
successful. For the assessment Rapha Performance Roadwear company, London which is
planning to expanding the business in Brussels, Belgium is being chosen as a place for
expanding the business. The study will also explain the marketing plan which Rapha can adopt to
standardise its brand across international markets, organize and evaluate marketing efforts. It will
also discuss various international marketing entry routes that Rapha can opt and concepts and
scope of international marketing.
TASK 1
P1. Scope and key concepts of international marketing
Rapha Performance Roadwear is a sportswear and lifestyle brand founded in 2004 in
England that renders road bicycle racing, clothing, accessories, cycling holidays, cafe and
skincare. Rapha headquarters are in London, UK that makes cycling clothings and organizes
rides and events for passionate cyclists (Papadopoulos and Martín Martín, 2011).
International Marketing is the multinational process of planning and executing the
conception, pricing, promotion, distribution of concepts, goods and services to make exchanges
to satisfy needs and objectives of individuals and organizations (What is International
Marketing?, 2018.). International marketing id developed by various multinational firms on a
global level which is then send to local markets that makes changes for their country and follows
new strategy. This way of developing marketing strategies ensures that brand is focusing same
buyers group and following identical strategy. Whereas, domestic marketing is done within the
geographical boundaries of the nation catering to a small area.
Scope of international Marketing
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Use of internet, social media, advertisements and developments in advance technologies
has motivated growth of international or global marketing that is witnessing enormous changes
and are broadening its capacity with various factors that are as follows:
Exports and Imports: International trade is the good start to venture into international
marketing by developing global markets for domestically manufactured products and services
Rapha can reduce the challenge of operating internationally, attain experience and setup
marketing and production in foreign nation (Fetscherin, 2010). Exporting is the shipping, trading
of goods and services from one nation to another and importing is the buying of products and
services from an external source across national boarders.
Contractual Agreements: International marketing helps in carrying out more businesses
for an organization moving out of domestic boundaries that expands customer base, demands,
profits and sales volumes. IM helps in making contract agreements with various overseas
partners rendering exponential growth for Rapha.
Joint Venturing: International Marketing paves way for forming a collaborative
association between foreign investor and local company or vice versa. Mostly, joint ventures
comes into being when firms are interested in doing businesses in nations where outsiders are not
allowed to have operations thus raising scope of international marketing.
Contract Manufacturing: IM offers the mostly used tactics that reduces cost of
production for companies by entering into contracts where one firm in foreign nation agrees to
manufacture assembles the products and retains product marketing itself making it less risky and
easy exit.
Mergers and Acquisitions: IM provide access to markets, distribution network, latest
technologies and patent rights that reduces level of competition for organizations that either
acquires or merges (Malhotra, Wu and Whitelock, 2013).
Strategic alliances: IM renders a firm to improve long term competitive advantage by
forming good relations with its competitors by leveraging capabilities, increase innovation flow
and raising flexibility to market and technological changes.
Major Concepts of International Marketing
Domestic market extension: International marketing is resembled by the domestic
product marketing techniques as methods used for global level would be similar to products
marketed domestically. It is the first phase before a brand ascends international level for which
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the organization need to collect data regarding customers behaviour towards a product and
develop strategy to promote its goods and services in a particular market.
Multinational and multi domestic marketing: When a firm gets hold of the external
markets by growing stronger it settles in that particular market and operates from there like
domestic marketing (Samiee, Chabowski and Hult, 2015). The processes are repeated from that
market to other markets and brand also finds to standardise its goods and services to other
countries to raise final product suitable for global marketing (10 – Basic Global Marketing
Concepts. 2016).
International trade and business: With IM international trade becomes the objectives of
the firm where it need to export, import or re-export its products and services to its customers
and with other branches. International business is the extended version of international trade that
involves independent creation and selling of goods and services for each markets that reduces the
costs of import and export and accepts successful global marketing concepts.
1) where should we go
Rapha Performance Roadwear company, London which is planning to expanding the business in
Brussels, Belgium is being chosen as a place for expanding the business.
Rapha Performance Roadwear should enter in the markets of Brussels by joint venturing
which is the best way of entering in the new markets. Joint venturing will help the organization
in growing the business faster which is biggest advantage of joint venturing, it will also increase
the productivity of an organization and will ultimately will generate the profits for the
organization in new markets easily.
4)How should we operate
People: Every company depends up on the people in order to make out profits. This is a human
factor that plays an important part in delivering of services to customers and it has the influences
on the perception of buyers and also other customers in the market. On the international context
people differs from place to place due to difference in cultures and other factors.
Process: It deals with the mechanism and procedures and also the various activities
through which the service is delivered to the customers. Processes varies in an international
context because at international level companies processes varies from one country to another
because of demographic and geographic factors that prevails in the different parts of the world.
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Physical Evidence: Every company have some physical elements that a customer is pay
is willing to pay for. A company can provide the information of products and service by various
ways like internet, websites, social media etc. it also differs on the international context
depending up on the culture and languages.
5) to ensure success
A company can ensure the success for its business by making sure that its products is useful and
has meaning for the customers, a company should maximize its marketing efforts and also
improve its working statistics, employee engagement, proper analysis of competition and also
understanding the risks and returns. These factors will help in ensuring the success of an
organization.
P2. Rationale for Rapha to market internationally and various routes to adopt
The major decision that Rapha takes to advance or expand into international market or
globalize its huge domestic market share and learn about new laws and rules of international
trade and businesses (Suh and et.al., 2010). Branching out Rapha into an international marketing
can help brand to adapt with changing business conditions and take advantage of technological
improvements to expand its businesses. There are several reasons that attracts Rapha to become a
globally available brand;
 Increased economies of scale: Expanding to global business or international trade will
benefit Rapha by improving overall sales. As Rapha is offering unique cycling clothing
and accessories and organizing events with technological advancements that are not
available to international competitors adds advantage to the brand to become successful
in global markets.
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 Huge market share and profitability: As Rapha is experiencing a success in domestic
market with huge market share expanding globally will improve its profits thereby raising
the shares and stakeholders internationally. High revenue generating opportunities in
international markets than domestic market is chance for Rapha to expand and move
towards international trade and business (Demangeot, Broderick and Craig, 2015). Short and long-term security: Untapped international market and prolonged product and
services life, short and long term security in vulnerable fluctuations and competition are
other reasons that Rapha can look for going global.
 Increased innovation and management learning: Extending Rapha's customer base
internationally will assist firm in new product development financing, learning from
competitive markets and competitors and understand how to deal and work with
demanding sophisticated customers.
Modes of entering an international market are the channels that Rapha can employ to
attain entry into global markets. It can enter the international market by selling directly to
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Illustration 1: Rationale for international marketing
(Source: 8 Reasons Why Most Companies Prefer to Go Global – Explained!. 2018)

customers in export boundaries, market products through local distributor etc., and each strategy
provides business with various levels of risks, cost and control (Okazaki and Taylor, 2013).
Research: Before deciding strategy to adopt Rapha need to carry out a preliminary
market investigation to find out information on global market opportunities and outcomes.
Checking local businesses and safety regulations to understand the modifications to Rapha's
products and services to comply with local legislation or cultural requirements.
Website: Rapha can sell products and services through their website at a simple low cost
method to enter international market. Customers and prospects around the world will be able to
visit Rapha's website anytime and choose products and services by placing orders.
Direct sales: Rapha can sell directly to export customers by making sales visits to
boundaries where it has identified demand which is a cost effective method to enter international
market.
International agents and Distributors: Rapha can work with distributors who has local
presence in target markets and will reduce the sales and logistics requirements as they will buy
products and services and resell it to their own customers. It will offer a benefit of established
local contacts and market knowledge.
International marketing offers various opportunities for Rapha's products and services as
the market is huge in population and purchasing power of customers in global market are high
with lesser pitfalls. International marketing offers different challenges and opportunities for
Rapha which it need to consider they are:
Political environment: Rapha need to look at the country's political factors that might
add advantage and cause impact on their business by evaluating the environment, partnerships
and consumer behaviours. The political influence like import restrictions, tax controls and labour
issues are to be understood before investing in international operations (Felzensztein and et.al.,
2014).
Being flexible when operating in overseas: To operate internationally Rapha must be
open minded and flexible to adapt with changes in new country by embracing cultural
differences, providing incentives for good firm culture and allow creativity among employees.
Globalization: It creates wide opportunities for Rapha and helps in economic growth of
the nation in which it is going to expand with demand for its new products, less labour costs and
cheap natural resources. Increased developments in technology is a supporting element for
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Rapha as it helps the firm to introduce and develop its innovative goods and services for
customers in a global market.
TASK 2
P3. Key criteria and selection process to use when considering international market to enter
Selecting an international market is a major factor that Rapha need to consider while
going global as it is the main determinant of success and it influences nature of foreign
marketing programmes for which a strategic planning is necessary (Cavusgil and Cavusgil,
2012). Rapha can focus on the international market entering evaluation approach to select and
use marketing strategies to enter a global market. The purpose of this approach is to measure the
international market that offers best opportunities for Rapha's products and services to succeed.
The following steps are involved in understanding and selecting the criteria for choosing entry
to a global market: Country identification: Rapha need to identify the nation to which it need to go into by
undertaking a general overview of potential markets for its products and services. While
identifying the country Rapha must also look for the export market which is in the same
trading zone. Preliminary screening: After identifying the countries or potential markets for Rapha's
products and services it need to weight and rank nations on the basis of external
environmental factors like currency stability, exchange rates and domestic consumption
etc., to calculate the nature of market entry costs. In-depth study is required by Rapha to
understand nations that are experiencing political instability to avoid risks (Ruzo and
et.al., 2011). Developing sub segments in qualifying market and countries: After identifying the
prime markets or nations Rapha can use the standard techniques to segment markets
within countries using; demographic, lifestyle, geographic, buyer behaviour, consumer
motivations or attitudes, psycho graphics etc. Detailed screening: Rapha need to obtain in-depth information on the target market for
accurate marketing decision-making by analysing micro economic factors and local
conditions like marketing research in relation to marketing mix etc. This will assist in
market segmenting, targeting and positioning of Rapha's goods and services by taking
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into consideration of value of country's market, tariffs or quotas in operation and similar
opportunities or risks to new entrants.
 Final selection: Rapha can select the target market or potential nation by reflecting the
strategic decision and plan for expansion by matching it with available markets and
information. They should also closely look for competitors or similar domestic
companies that already have a presence in the target market to attain firmer costs in
relation to Rapha's market entry (Tan and Sousa, 2013).
Rapha while selecting the best international markets identifies the following selection
criteria depending on their level of resources, objectives, product and services competitiveness
etc. Market demand: Rapha measures and ranks potential market countries for their goods
and services demand by calculating market size, rate of growth, market share,
competition and closeness to their offerings. Competition: Rapha can identify the current players of the targeted market who are
rendering similar products by analysing price, distribution methods, consumer loyalty and
ability to render after sale services etc. Nation performance: An assessment of the macro environmental factors and trends of
each selected potential market by understanding the population, per capita income,
consumer demographics etc., are some indicators to be used by Rapha that will render the
performances of particular market nation (Assessing Foreign Markets: Selecting the Right
Markets Can Make Your Company a Fortune. 1997.). Trade barriers: Rapha need to identify the tariff and non tariff barriers, adaptations and
packaging and labelling regulations of each potential market nation to understand the
investment required to make (Leonidou and et.al., 2010).
 Distribution accessibility: Rapha also need to analyse and understand the channels of
distribution including supplier and distributor or agent information available in the
potential markets to gain understanding of its product and services distribution.
P4. Market entry strategies, including advantages and disadvantages of each
Foreign market entry modes or participation strategies of Rapha differs in matter of risk,
control and commitment of resources they require and return on investment they offer. There are
two major entry modes in a global market that Rapha follows: Equity modes that comprises joint
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venture and wholly owned subsidies, Non-equity category which involves export and contractual
agreements. Rapha follows the following entry strategies to enter into international marketing
after analysing the marketing evaluation and selection of marketing processes:
Types Advantages Disadvantages
 Exporting: Rapha
follows this entry mode
to enter into a global
market that involves
process of selling its
goods and services to
another nation. It
involves two types;
direct exporting and
indirect exports. It is
the easiest way for
Rapha to enter in
international market,
indirect exporting will
include trading
companies which are
involved that facilitates
buying and selling of
Rapha's goods and
services abroad on
behalf of it. Whereas,
indirect exporting is
where Rapha manages
to sell the products and
services in
international market
through; sales
 Quick access to
markets
 Outsourced export
management system
that removes
management pressure
of Rapha (Evers,
Andersson and
Hannibal, 2012)
 No direct handle of
export processes
 Greater sales, good
information feedback
and better relation with
buyers
 Little control over
sales, distribution,
marketing
 Wrong selection or less
knowledge about
distributor may lead to
inadequate market
feedback that might
affect success of Rapha
 Higher start-up cost
and risks
9

representatives
travelling abroad,
overseas sales branch,
by setting domestic
based export
department and
distributors or agents
working abroad on
behalf of Rapha
(Griffith, 2010).
 Licensing: This mode
of entry renders Rapha
to manufacture a
proprietor's product for
a fixed term in specific
market. Rapha can
attain a licensing with a
domestic company in
chosen foreign market
by rendering
permission to use its
manufacturing process,
trademark, patent and
name of the local firm
while facilitating sales.
 Quick expansion
without much risk and
investment
 Extra income gain for
technical know-how
and services
 Minimized political
risk as licensee is
locally owned
 Highly attractive for
Rapha as it is a new to
international business
 Loss of control of
license leading to loss
of quality
 Risk of having
trademark and
reputation ruined by
incompetent partner.
 Lower income that
other entry modes or
strategies
 Franchising: It is the
system where semi
independent business
owners pay fees and
royalties to parent
 Less political risks
 Low cost
 Renders simultaneous
expansion into various
regions globally
 Conflicts and disputes
with franchisee
 Requires monitoring
and performance
evaluation to render
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company in return for
the right to become
identified with its
trademark to sell
offerings and use its
business system and
format. Rapha can
render franchising
facility to the chosen
country market so that
it can enjoy the higher
control and allow
franchise to control on
its behalf and in line
with terms and
conditions of domestic
company.
 Precise partnerships
brings financial
investment and
managerial capabilities
to Rapha
assistance (Douglas
and Samuel Craig,
2011)
 Maintaining control
over franchisee are
difficult
 Preserving Image of
Rapha in international
market is challenging
 Joint Venture: Rapha
can enter international
market by associating
with other country
based firms to
monetize existing
relationships with their
local customers (Lee
and Carter, 2011).
 It renders Rapha and
it's partnering firm
chance to learn from
each other while
limiting access to
proprietary skills
 Rapha will be favoured
when the partner's size,
market power and
resources are small
compared to industry
leaders
 This would benefit
Rapha when its
 Conflict over irregular
new investments
 Cultural differences
and clashes
 Lack of support from
parent firm
 Chances of
performances
ambiguity.
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partner's strategic and
competitive goals
deviates
TASK 3
P5. Overview of key arguments in global versus local debate and implications
When entering into a foreign market Rapha need to make fundamental decision to
standardize or adapt its offerings. Debate on global versus local approaches choosing suggest
that due to rapid advancements in transportation and communication technologies world has
become homogeneous (Cadogan, 2012). This has led the standardized customers render firms
with opportunities to attain cost savings by means of economies of scale in production,
marketing and other activities which has benefited financially through standardization. Also,
local debate argues that there are major differences across boundaries that need to be considered
which involves cultural differences, physical environment dissimilarities, religious beliefs,
languages, legal requirements and infrastructure. The global debate argues that volunteering
abroad creates huge impact because the unique experience and insight obtained by traveling to a
foreign nation develops meaningful improvements and expands world for them.
Illustration 2: global versus local debate
[source: Cadogan, 2012]
In today's rapidly changing global world firms aims to operate on an international scale
for which they need to face various challenges and by following objective of operating
internationally businesses need to consider local differences as well. The major dilemma of
international marketing is the choice between selling the same products and services across all
boundaries and implementation of local marketing strategies to respond to regional
dissimilarities (Cadogan, 2010). A globally available product can also contain the local values to
12

render a higher level of recognition and by referring to the contingency approach states that there
is no method that applies for all businesses or hindrances instead a business whether local or
global must be fundamental.
Illustration 3: global versus local debate
[source: Helm and Gritsch, 2014]
standardization and adaptation of marketing mix
Standardization vs Adaption of marketing mix
Marketing Mix Standardization Adaptation
Product In standardization a company
does not make any changes in
the product or service.
In case of adaption a company
makes the necessary changes
in the product or service.
Price A company sets a fixed price
for product or service in their
international markets.
In adaptation prices of product
or services are set as per the
local market conditions.
Place A company follows a single
channels of distribution.
A company has to adjust its
channels of distribution.
Promotion Same kind of promotional
process is followed across
But in adaptation changes are
made in the promotional
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entire international markets. processes.
competitor analysis
A competitor analysis is the process of assessing the strengths and weaknesses of the of
the companies current and potential competitors present in the marketplace. A company will
facing the rivalry with Sea speed which is a cycling company, but the companies advantage is
that it sells it sportswear and accessories related cycling. Another rival is Sports Direct which is
a rival of Rapha. Sports Direct sells sportswear in Brussels, this company does not deal in
accessories which is a competitive advantage for Rapha.
Structure and culture
The organizational structure of Rapha is divisional, that is it follows the divisional
organisational structure which is divided into voluntary which includes CEO another id Salaried
which includes COO and CFO and in this there are various departments which includes sales,
marketing, IT, production etc. The organisational culture of Rapha is very unpredictable and is
mostly influenced by the external events and the company is regulated by the Government.
P6. Investigate how product, price, pricing and promotional distribution approach differs in
international contexts
Marketing mix is set of decision that helps in introducing new product in marketing. It is
also called as 4 P's of marketing. This stands for product, price, place(distribution) and
promotional. In the international market, marketing mix strategy is different. All the factors are
assorted in the marketplace. Rapha is the sportswear brand focused on road bicycle racing,
clothing and accessories in London. Company make decisions such as products, pricing, ways of
promoting and place decisions.
Products: Rapha is sportswear and lifestyle brand focused on various products such as
clothing, skin care, cycling holidays. Therefore, they are making decision for introducing of
product in markets. They make sure that identify quality, features, branded of products as
compared to another brand of company. So that, marketing consultant of company give proper
suggestion to marketing manager of organization. Pricing, place and promotion decisions are
based on product judgement (De Mooij, 2018). Therefore, marketing manager of Rapha make
appropriate determination regarding product. In the international context, there are different
14

elements are included such as risk choices, test marketing, ideas, evaluations, product lines etc.
These components are affecting on product decisions.
Pricing: After taking decisions of products, marketing manager determine pricing of
goods. Pricing includes costing of commodity, advertising as well as marketing expenses, price
variation in market place, distribution costs etc. If all variables are changed, so that ultimately
pricing of products has to increased and decreased. Competitors pricing also affects on pricing
decision of marketers in Rapha. There are many pricing strategies like premium pricing etc.
Therefore, marketing manager of company make sure that utilizing the best pricing strategy for
product development in marketplace. In global context, many components involves in pricing
decisions such as market structure, level of competitions, channel of distribution etc.
Distribution(Place): Place means to distribution channel of good. Distribution decisions
of products are based on product and pricing determination. It is also based on segmentation,
targeting and positioning decisions taken by company. Therefore, manager consultant of Rapha
give proper suggestion to marketers for making appropriate decisions for selling of products in
the market(Helm and Gritsch, 2014). This decision affects on profitability of goods. So that,
marketing manager of Rapha take appropriate determination regarding promotion of products.
There are many factors involves in distribution decision such as particular target market across
nations, financial commitments, control of features of channel in international context faced by
Rapha.
Promotion: It is also main decision that promoting of product taken by marketers of
Rapha. It involves advertising, online marketing, sales promotion etc. These decisions also
depend upon product and pricing determination. Promotions also decided segmentation, targeting
and positioning of products. This is considered as marketing expenditure and also deciding
costing of product. It is necessary to awareness of brand or product, if product is entirely new in
marketplace. For effective promotion, markets needs to higher budget(De Mooij, 2018). In
relation international context, culture effects, budget that are affected on promoting of product in
the market place (Papadopoulos and Martín Martín, 2011).
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TASK 4
P7.Various international marketing approaches that Rapha can adopt
It refers To the application of marketing principles and business activities in more than
one country. International marketing is the performance of several business activities like
planning pricing, promoting and directing the company's product to customer across the national
boundaries. There are two main approaches of international marketing which Rapha can adopt,
centralized and decentralized marketing strategies. These approaches are mainstream trends the
contemporary business environment. The organization can use either centralized or decentralized
marketing strategies.
Centralized approach:
In this approach, a marketing team headquarter will be responsible for taking all the
decisions regarding marketing. They will plan and execute most of the marketing programs. This
approach will be most affective when the marketing department is highly competent and has
experiences of international market (Two approaches to smarter international marketing:
Centralized vs. Decentralized, 2018 ). The marketing team can make effective strategies with the
help of local marketing experts. If Rapha is adopting centralized approach, it will company to
focus on in-house marketing capabilities and scalable process. This approach has slow growth
rate comparative to other approach (Fetscherin, 2010).
Decentralized approach:
This approach involves small individual distributors or local sales officer who will
perform the business activities. If Rapha will adopt decentralized approach, the company has to
focus on supporting and motivating the local staff and representatives. Maintaining close
relationship with local countries representatives and marketing staff is the key to the company's
success. Decentralised marketing approaches gas a disadvantage that a company can looses some
control on the representation of the brand.
P8. Comparison between home and international orientation and ways to assess competitors
outlining implications of each approach
International marketing orientation is the process of extending Rapha's local marketing
strategies through identifying target markets and implementing positioning strategies to attain
success in international markets. Home market orientation is the philosophy of Rapha focused on
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understanding and meeting needs and demands of their customers through its product mix and
works in attempt to tailor products and services to achieve desires of customers (Malhotra, Wu
and Whitelock, 2013). Globalization, technological advancements and internet creates an
opportunity for Rapha to enter in international markets to increase profits and reputation of firm.
Depending on the nature and business operations of Rapha and manufacturing of products and
services according to suitability of foreign environment and customers they need to perform with
various orientations. Handling business operations and implementing strategic decisions of
marketing in global marketing involves controllable and uncontrollable factors which are the
combination of strengths, weaknesses, opportunities and threats to Rapha.
Ethnocentric: This involves the extension of various domestic products to appropriate
international market in order to dispose excess domestic manufacturing. Ethnocentric orientation
involves manufacturing of Rapha's goods and services to satisfy home country clients (Samiee,
Chabowski and Hult, 2015).
Polycentric: This orientation of international marketing involves manufacturing goods
and services of Rapha's to satisfy needs and requirements of customers of various nations where
firms renders freedom to subsidiaries to take marketing mix decisions suitable for market
conditions.
Regio or Geocentric: In this type of international marketing orientation Rapha considers
the whole global world as a single market to attain brand image and occupy major share in
international market.
CONCLUSION
International marketing assessment discussed the scope and importance of concepts of
global marketing and explained the rationale for Rapha to enter international markets with
various routes it can follow. The report also elucidated the major arguments in the global and
local debate with investigations on 4 P's approach difference in international context. Assessment
also discussed various international market entry strategies of Rapha with their advantages and
disadvantages and analyzed the different international approaches of marketing and comparison
of home and international orientation and ways to assess competitors.
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