International Marketing Key Concepts- PDF

INTERNATIONAL
MARKETING

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Scope and key concepts of international marketing....................................................................3
Rationale for Pepsi to market internationally and opportunities and challenges behind
international marketing:..............................................................................................................4
Applying key criteria and selection process while entering in international markets:................6
Different entry strategies with its advantages and disadvantages and critical evaluation for
international markets...................................................................................................................6
Evaluating circumstances for adopting local or global approach:..............................................8
Adaption of marketing mix in different International markets:..................................................8
Evaluation of various International Marketing Approaches and competitor's analysis .............9
Comparison of home and international orientation ..................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Introduction
International marketing is used when an organisation enters into global markets for
buying, selling and dealing its products and services. It is referred to as application of various
marketing principles, tools and techniques for satisfying needs and wants of customers in the
international markets. PepsiCo is an American soft drink, food, snacks and beverage
manufacturer company. PepsiCo developed and introduced a soft drink named Pepsi in the 1880s
which lead to the growth and expansion of overall organisation. In the following report, scope
and key concepts of international marketing and various opportunities and challenges faced by
companies in international markets are explained.
Main body
Scope and key concepts of international marketing
PepsiCo started expanding its product Pepsi in international market using international
marketing techniques and tools. Globalisation allows open markets for business organisations
and widens the scope of marketing.
Key concepts of international marketing are:
Domestic Marketing: Company operating in domestic markets diversifies into new
markets with new products, techniques and technologies within the country is known as domestic
marketing.
Export Marketing: Exploring different market opportunities and expanding market size
by stepping out of domestic country is referred as export marketing.
International Marketing: Organisations exports its surplus products to foreign country
with no direct efforts of marketing is International Marketing (Amankwah-Amoah, Boso and
Debrah, 2018).
Scope of International Marketing
Imports: Products and Services bought from across national border or from Foreign
trade is referred as Imports. International marketing allows organisation to buy or import from
international markets and sell in domestic markets.
Exports: International marketing allows business organisation to sell and export their
domestic products in the foreign countries. Pepsi expands its business by exporting its products
in forien markets.

Contracts or Agreements: Business organisation like Pepsi gets a chance to expand
their business in international marketing by coming into a contractual agreement with partner
organisation in foreign markets so that they can build strong customers base, increase
productivity and profits.
Joint Ventures: This refers that two different organisation and brands come together to
enter in potential market for a pre decided time period. Unilever and PepsiCo comes in Joint
Venture for increasing the distribution of products and expanding their business (Katsikeas,
Morgan and Hult, 2016).
Contract Manufacturing: This allows organisation to reduce the cost of production as
companies gives contracts to another company for manufacturing and assembling the products.
Fully owned Manufacturing: International marketing widens the scope for organisation
to fully own manufacturing in foreign countries and allows companies to control the quality.
Pepsi fully owns manufacturing to sell and exports the products in international markets.
Rationale for Pepsi to market internationally and opportunities and challenges behind
international marketing:
International marketing allows business organisations to expand the customer base by
entering into foreign markets. Various routes to international markets are basically imports and
exports. PepsiCo can enter into international markets by doing business of licensing or partnering
with other company (Vellas, 2016). PepsiCo can also acquire some company and it can also do
joint venturing. PepsiCo expands and increases sales of its products by entering in various
countries so that it can achieve its objectives effectively.
Various rationales for Pepsi to market internationally are given as follows:
Increase sales: The main benefit of international marketing is that it leads to increase the sales
of the products. PepsiCo enters into many countries like Russia, United states, India, Japan so
that it can bring results of increased productivity and sales for its products.
Expand profits: Organisation entering into new markets gains increased productivity and sales
of its products that further brings benefits of increased profitability. PepsiCo has gained benefits
of increased profitability through entering into many foreign countries.
Sustainability: International marketing allows business organisation to sustain in competitive
business environment by increasing their productivity and profits. Marketing internationally