International Marketing: Scope, Concepts, and Strategies

This document provides an overview of international marketing, including its scope and concepts. It discusses the rationale for marketing internationally, various routes to the international market, key criteria for selecting international markets, strategies for entering the market, and the difference in the 4P's of international marketing. The document focuses on the case study of Rolls-Royce, a UK-based company.

International Marketing

Table of Contents
INTRODUCTION:..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Scope and concepts of international marketing.................................................................3
P2 Rationale to market internationally and various routes to market....................................4
TASK 2............................................................................................................................................6
P3 Key criteria to select international market.......................................................................6
P4 Strategies for entering market along with advantages and disadvantages........................7
TASK 3............................................................................................................................................7
P5 Key arguments in Global vs Local Marketing..................................................................7
P6 Difference in 4P's of international market........................................................................8
TASK 4............................................................................................................................................9
P7 Various approaches of international marketing organisations can adopt..........................9
P8 Comparison of domestic and international orientation and various ways to evaluate
competitors of each approach...............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION:
When a company operates its business activities including designing, planning,
pricing ,promotion and flow of product in more than one country is called International
Marketing (Baker and Saren, 2016). Objectives however for marketer is same that is to earn
profits from business. Company taken into consideration for this report is Rolls-Royce which is
a company based in UK. It was started in 1998 in England. Following report discusses various
routes to international market, selection of market, strategies to enter international market. Other
than this the following report also analyses global vs local markets, 4P's applied to international
market, international marketing approaches, and competitors in these markets.
TASK 1
P1 Scope and concepts of international marketing
Concepts and scope of international marketing can be divided into 7 major types. Below
mentioned are those 7 categories:
 Export: Export refers to international trade of goods and services which are
manufactured in one nation and sold in another nation. A person who carries out such
business is called an exporter. Globalisation have made a number of businessmen
exporter. They use exporting as a way to expand their businesses and then undertake
many other various modes to serve foreign market. Exports are of two kinds that are
visible and invisible exports. Both of these types help a company to earn profits from
foreign exchange as well.
 Contractual Manufacturing: This is an arrangement in which a company takes help
from another company in a different nation to manufacture product for it. This can also
be named as international outsourcing or international subcontracting. Company
outsourcing their work usually provides them with specifications as well as materials for
manufacturing.
 Imports: Businesses buy a product from market in order to resale it. When products are
brought in from other nations it is known as imports. Companies many a time also take
help from imports in order to improve their production line.
 Joint ventures: In this two organisations collaborate for a given period of time. This
creates a new firm which have individual goals and work differently from their parent

organisation. New firm works under both brand venturing it and divide profit and losses
in a pre-mentioned ratio. Examples for this can be Google and NASA, BMW and Toyota
etc.
 Fully Owned Manufacturing: It happens in cases where a company has complete
control over both production as well as promotion in a foreign market (Angulo-Ruiz,
Pergelova and Cheben, 2016). Company has its own facility for creating and assembling
product. Brands here work for long term goals rather than working for short term.
Examples can be Suzuki,
 Strategic Alliance: Companies here comes together in order gain a competitive
advantage. When a single company is not enough to compete with market leader they
join hand with other small companies in industry in order to gain maximum market share.
 Management Contracts: These contracts helps in achieving skilled labour forces for
brands. This helps companies to gain advantage as quality of products rises. Companies
an gain maximum market share with the help of these skilled labours then.
Company undertaken for this report Rolls-Royce uses export concept for its international
marketing. Its manufacturing plant is present in West Sussex, UK and its cars are exported from
there to its showrooms all over the world.
P2 Rationale to market internationally and various routes to market
Rolls-Royce aims at becoming market leader for manufacturing of luxurious cars and
other vehicles produced by it. A number of routes could be used by manager of Rolls-Royce to
globalize their business. Few of these routes are mentioned below:
 Licensing- This is an agreement between a purchaser and an organisation. Through this
route of international business owner or manufacturer of good signs a contract with a
seller who carries on business in local market and provide them with a license. When
Rolls-Royce does this with a local seller this means that they are providing them a
license to sell their product. Local seller selling Rolls-Royce will then be eligible for a
commission mentioned in contract according to number of cars they have sold.
 Joint Venture- In joint venture two international organisations come together to form a
third organisation. This concept states one plus one is equal to three. Time period for
which two firms will work together is already mentioned in contract. Business risks and
profits are also divided in this as per the contract. Rolls-Royce can follow this and form a

joint-venture with another auto mobile production industry so as to make manufacturing
units in other countries as well. Company can then produce vehicles there and sell it in
the same country.
 Direct Exporting- This method includes direct selling of goods in the international
marketplace. This is simple export. In this transfer of manufactured goods takes place
from one nation to another (Bocconcelli and et.al., 2018). Manufacturing unit is setup at
same place only movement of goods take place in this. Company needs to set-up proper
logistics to carry it on effectively. Managers of Rolls-Royce need to create a proper
program for sales so that product can reach to maximum number of people in market.
They aim at maximizing the reach of their product in market.
Rolls-Royce needs to choose a route for carrying on their business internationally. They can go
for licensing which will best suit their condition as they only produce at one manufacturing unit.
This is also a good way for company to expand internationally and avoid some trade tariffs as
well. This will help company to increase their revenues as well as profits from international
market.

TASK 2
P3 Key criteria to select international market
Carrying out a business in international market including its planning, promoting,
distribution and pricing of goods as well as services in more than one country is said to be
international marketing. Procedure and major criteria to chose a international market for Rolls-
Royce are mentioned below- Marketing objectives: In this step opportunities available while operating business in
different countries is evaluated. In this step marketing team of Rolls-Royce will list all
countries it can venture into and what are benefits available with all these businesses. Selection of parameters: There are various parameters on which business location can be
judged by a company. These parameters are different for different countries. Some of

these can be business environment, organisational resources, social factors, organisational
resources etc. managers of Rolls-Royce need to decide a ground on which they want to
enter a new nation's marketplace. Preliminary Screening: In this steps managers of Rolls-Royce will eliminate those
nations which have really low opportunities and are not optimum for trade. Short listing markets: In this the nations which are best suited for our organisation are
shortlisted Schultz, 2017(Gao,, Ren and Miao, 2018). In Rolls-Royce managers will
make a list of companies which provide opportunities and best suit their requirements. Evaluating and selecting: From list a market which is best will be selected. Rolls-Royce
takes decision on which market is providing them best opportunities and finalises one of
it. Test marketing: In this step a test is organised in selected market. Rolls-Royce for this
purpose provide its cars to selected customer in the market and check how are reviews of
their product in market. Commercial Production: After testing if customers provide positive feedback about
product then company can start trading internationally. Rolls-Royce takes reviews from
customers who were provided cars and then launch their product in international market.
P4 Strategies for entering market along with advantages and disadvantages
There are a number of strategies available with companies to enter an international
market. In context of Rolls-Royce following strategies can be used are direct exporting and joint
venture. Above tasks have already defined how these strategies can be used by companies. It is
necessary for marketing manager of Rolls-Royce to critically analyse international markets in
order to know about benefits and disadvantages of all the strategies. Adopting a strategy which
do not prove to be beneficial for firm can make huge losses as huge amount of investment is
requires in such ventures.
There are a number of factors effecting such decisions of a company some of them are
mentioned below:
High Cost- Entering into a new market can be difficult for firms. Venturing into new
market market research, promotion, transportation cost an all prove to be expensive for firm. So

a firm need to take care of all costs before venturing into new countries (Asseraf, Lages and
Shoham, 2019).
High Risk- In order to earn more high risks are to be taken by firm. Risk in international
markets increase as companies do not have control over laws and political parties. They will
always be foreigners and treated unjustly.
High Control- Companies require high control over their businesses. They need to have
full control over business in foreign market. In many cases the government of foreign country
have more control than businesses which may not be good for companies.
Low Flexibility- When dealing internationally companies have to face a number of
problem. Due to foreign rules and regulations and dynamic changing consumer perceptions risks
of working in international markets increase (Hapsari, Clemes and Dean, 2017).
Other than this there are a number of internal as well as external factors affecting this
decision:
Internal Factors: Internal factors in this decision include lack of knowledge about foreign
markets. Companies do not do proper market research due to which they do not successfully
venture internationally. Product complexity is other internal factor in this. A product might be
useful for one country but completely useless for another economy. Companies need to make
their product with variations for different markets.
External Factors:
There are a number of factors which externally have an effect on decision of entry in
foreign market by a firm. Social and cultural change has a major role to play in it. Another
external factor is demand uncertainty (Kostin, K., 2016) Customers preference may change
anytime or new and better goods might launch in market leading to uncertain demands.
TASK 3
P5 Key arguments in Global vs Local Marketing
Global marketing can be said to be planning, coordination and implementing marketing
tasks in various nations . It is duty of firm to rise above all challenges arising from differences in
economy, culture and laws in various countries. In global market company needs to have more
focus on unfamiliar competitors as they will have more effect on profits of organisation.

Companies need to standardized their product according to countries they are selling it into.
Economies of scale can also be developed through it as companies produce in bulk quantities
when dealing in foreign markets and can also sell their products for cheaper then.
Example of Apple Inc. can be taken here, empathy, focus and impute were the main
marketing strategy developed at beginning and is still followed by organisation. This means that
company will understand need of customers better then them, they will work with focus
eliminating all activities which are not important and that they will produce best quality goods
cause people judge book by its cover(Angell, R.L. and et.al., 2017). Apple is running
successfully in global market by approaching to young and cosmopolitan consumer all over the
world.
Local marketing means that a company while expanding globally needs to think as per
local market. Boundaries cannot be simply measured geographically, cultural differences,
structure of market, and many other things are influencing marketing strategy. It is necessary for
companies to create a good image, while marketing products in a market in order to earn profit.
Companies need to compete with local competitors as well for which they need to mix up with
local consumers.
Example of McDonald can be taken here. Company started with a small restaurant and is
now a leading food service chain providing fast food in over 119 countries. They have efficiently
bridge the gap between being globally successful and fulfilling need of locals. Its campaign “i'm
lovin it” was designed for global market but local agencies used it on their ow way in order to
adapt it in national markets as well (Orchiston and Higham, 2016). McDonald's policy itself was
“think global act local” which best describes this debate of global vs local.
P6 Difference in 4P's of international market

Product
It is clear from basic marketing concept that if a company can meet its customers
demands it will earn more profits. While in international market it includes various other factors
such as religion, culture, geographical area, incomes, buying habits etc. In many cases company
adjust their products as per needs of local market (Pomirleanu, Mariadoss and Chennamaneni,
2016). For example McDonald's can be taken which have been adjusting its product as per need
of local markets. Rolls-Royce can do this by taking orders for their vehicles in advance. Many
clients need special modifications they can do it for them. Also cars will be created differently
for different countries based on their atmosphere, condition of roads, traffic rules etc.
Price-
Pricing when working in international market can be difficult than usual. They have to
take into account various factors including fixed and variable costs, targeted
customers ,competition in market etc. Only these factors are not enough there are also a number
of other factors which includes transportation cost, exchange rate fluctuations, economic
situation of country, disposable income of market, tariffs and import duties etc. Rolls-Royce is
also looking into all these factor while working internationally. It tries to earn maximum from
foreign exchange rate fluctuation. However, a lot of its cost include transportation cost due to
which prices of its product rises.
Place-

Place element means deciding on the areas where products of company will be
distributed. Products need to be at a right place in right time when customer requires it.
Distribution of products in international market comprises of movement of goods from one
country to other (Baker and Hart, 2016). Overseas market include moving of goods in foreign
market from one country to another. Businesses need to be aware of distribution chain for every
country it wants to work in. Distribution strategy will be different for each country. Rolls-Royce
decides its distribution strategy differently for each country it is venturing into. It looks over all
costs and other aspects before venturing into markets.
Promotion-
In international market companies need to adapt a more standardized way to promote
their products. Different advertisements are to be made for different countries due to language
and cultural barriers. Every step of promotion in international market requires proper research
and planning before launching. Media development practices in every country is also different
due to which promotional activities become more difficult. Rolls-Royce have adopted a number
of advertisement for different countries. It also take help from national known personalities who
are featured in those advertisements. Its promotional strategy ranges from country to country.
TASK 4
P7 Various approaches of international marketing organisations can adopt
International marketing approaches is a multi-domestic that a company could favour neither
foreign country nor domestic country and also it is known as global approach. There are variety
of ways to come in a foreign country but no one market could develops the strategies that works
for the international markets (Mulinari, S., 2016). There are some approaches involved which is
described as follows:
Ethnocentric Approach: By applying this approach, the target market within their own
country which involves immoderate production that exports to other markets while knowing the
taste and preferences of end users. In context to Rolls Royce, this company could focuses on the
development of international markets and creates same type of domestic market.
Regio centric Approach: A company could operate successfully in a foreign country
that exports to other countries to the grown up country. Further, it includes laws, culture and

policies that regulates various strategies for evolvement of market to a grow up country. In
context to Rolls Royce, this company develops new equipments for the evolution of its business
in foreign country.
Poly centric Approach: It is defined as a company that made-to-order the needs and
requirement according to the customer taste and their performance for international market. In
relation to Rolls Royce, this company could explore its business across the various countries to
serve its global environment by exporting its products and services (Bartsch, Riefler and
Diamantopoulos, 2016).
Geocentric Approach: It refers to examine the tastes and preferences of the customer in
foreign markets and also acquires their strategies in international exports and imports. In context
to Rolls Royce, this company also adopts various strategies that lead to development of market
structure in all over the host country.
P8 Comparison of domestic and international orientation and various ways to evaluate
competitors of each approach
The various organisations move down business with different positioning according to
the cause of functions of its business. This involves exploring of domestic products into
international markets so that it uses the production in home market. The several location in
assistance to Rolls Royce that are included as follows:
Basis Domestic orientation International Orientation
Market representation This lead to directs on law of
dissimilarity in among the
foreign market and domestic
market that explore its market
(Retnawati, 2016).
This market believes the whole
world as the alone market
across the international market.
Strategies Domestic strategy is exploring
to the foreign market.
This market is extended
through the global market.
Advantages The more endeavour are
needed and also include its
cost effectively and efficiently.
This include economies of
standards that lead to be
attained(Balabanis and

Diamantopoulos, 2016).
Disadvantage The range of screening the
international market which is
limited in all over the country.
Under many conditions the
replaceable procedures are
failed in a country.
CONCLUSION
International marketing is defined as the activities which is operated as promotion,
planning and pricing and then transfers to other host country. In relation to Rolls Royce, which is
a motor cars auto mobile company. This report includes international market, domestic market,
selection of market, various strategies to enter into foreign market. Further, it includes examine
of global and local markets, 4p's applied to international market and various approaches. In
addition to this, competition to other markets on the basis of international market structure.

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