International Marketing: Scope, Concepts, and Strategies

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