Scope and Key Concepts of International Marketing

This document discusses the scope and key concepts of international marketing, including the rationale for organizations to market internationally. It also explores different market entry strategies and evaluates the opportunities and challenges of marketing internationally. The document focuses on the case of British Telecom, a public limited company operating in the telecommunications industry.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse the scope and key concept of international marketing......................................1
P2. Discuss the rationale for an organization to want to market internationally and describe
the various routes to market they can develop.......................................................................2
M1. Evaluate the opportunities and challenges that marketing internationally presents to an
organization............................................................................................................................3
TASK 2............................................................................................................................................3
P3. Evaluate the key criteria and selection process to use when considering which
international market to enter...................................................................................................3
P4. Explain using examples the different market entry strategies, including the advantages and
disadvantages of each.............................................................................................................5
M2. Apply the market evaluation criteria entry strategies and make recommendations for
selected organization..............................................................................................................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
International marketing is considered as business activities, which is conducted by a
company in order to design effective plan, promote products and services, set price and provide
goods and services to customers for attaining high profit. Through this firm able to gain several
benefits such as rapid industrial growth, facilitates cultural exchange, enhance standard of
leaving and so on (Akaka, Vargo and Lusch, 2013). Organization selected for this assignment is
British Telecom which is a public limited company which is operating its business at
telecommunication industry. It is founded by William Fothergill Cooke and John Lewis Ricardo
in year 1969. Topics mentioned report are related to understanding of marketing contributes to
business strategies at international level. It will also describe about entry to specific international
market and their succession factors.
TASK 1
P1. Analyse the scope and key concept of international marketing
International marketing can be defined as planning, analysing, executing and promoting
the products of a company at the global level and fulfilling the needs and expectations of the
people living in different parts of the world.
This type of marketing is also known as global marketing. Having earned a large scope
today, no company can sustain without international marketing for a long time. Marketing
strategies today are not limited to just one place but they have opened opportunities for the
marketers by making the world as a single marketplace. Also, increased power of purchasing has
led to a high taste of products among the customers. With the emergence of new potential
markets, the brands have become conscious and knowledgeable regarding the amount of
competition that can be posed towards them.
Marketing contributes an important role in developing business strategies for a company
such as it helps in creating products and services that will help the organization in earning more
profits and revenue and thus establishing its brand name (Baack, Harris and Baack, 2013). There
are a number of factors that influence internationalisation including learning, experience of the
customers. Internalization, locational advantages and institutional arrangements. Having
operations in premium locations help the firms in building a brand image and establishing their
brand at the global level. Also, experienced and learned customers have deep understanding and
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knowledge of the products that are made available by the organization. There are companies that
gain competitive advantage over their competitors by either launching a new product satisfying
the customer needs or incorporating changes in their existing products to meet the demands of
the customers internationally. The organizations must also have international marketing skills so
that they are able to build a niche and the sales are high. The brands should follow the strategy of
carefully segmenting, targetting and positioning themselves in the minds of people.
P2. Discuss the rationale for an organization to want to market internationally and describe the
various routes to market they can develop
In toady's time companies are seeking opportunities to expanding their business at
international level because through it they get numbers of benefits such as increase profit,
customers range and so on (Berthon and et. al., 2012). In respect of British Telecom, they are
operating their business function at international level and the rationale behind this are given
below:-
 Enhancing profit margins: It is one of the main reason why companies are seeking
internationalization opportunities. This is so because through it they can earn more and
more profits by enhancing their customer range. In respect of British Communication
they are operating at internation level due to which they have huge customers base at
every location.
 Recruiting new talent: By going internally companies able to recruit new talents at the
workplace which help them in operating business operations as well as functions in
effective manner. In respect of British Telecom they are operating at internation level so
they have high opportunity to recruit staffs from the any location where they are
operating. Along with this they also conduct transfer of one employee to other location
according to requirement.
These are the main reason due to which companies like British Telecommunication are
seeking international opportunities. Along with this, there are various routes of markets which
lead to development internationalization, from which some are mentioned below:-
Key global macro and customers trends-
 E- commerce and social media: Now a day it is one of the growing trend according to
which customers at global level are focusing or attracted toward E commerce and social
media for purchasing goods (Fletcher and Crawford, 2013).
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 Prefer natural material and transparency: Customers are also preferring those
products which are made of natural raw materials because those are highly skin as well as
health friendly.
M1. Evaluate the opportunities and challenges that marketing internationally presents to an
organization
If a firm expand their business operations and functions at international level they go
through numbers of opportunities as well as challenges which help and impact on the operations.
Some of the major opportunities and challenges which are faced by British Telecom are
mentioned below:-
Opportunities-
 Enhance market size: By adopting international marketing strategy respective company
able to expand their market size by attracting more numbers of customers, stakeholder
and investors at diverse location (Business Opportunities in the International Markets,
2019). This will also help them in maximising their profitability ratio and market shares.
 Return on investment: Marketing internally also provide opportunity to British Telecom
to enhance their return on investment by fulfilling demand of wide range of customers at
the diverse location.
Challenges-
 Political instability or environment: All nation have their own rules and regulation due
to which when respective company operate internationally they face issues related to
political instability, economic system, political system and so on.
 Norms and ethics challenges: Every nation have different standard, norms, principles
and value and it is essential for British Telecom to develop strategies accordingly (Ford
and Leonidou, 2013). If they not adopt that then they may face decline situation at due to
customers ethics and norms.
TASK 2
P3. Evaluate the key criteria and selection process to use when considering which international
market to enter
It is essential for a company to select effective strategy for internal market because
through it they can gain various benefits that lead to enhancement in profitability and market
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value. There are also several importance of selecting right international market, some are
mentioned below in respect of British Telecom:
 Identify potential customers: By adopting proper and effective international market
respective company able to target most appropriate customers for their
telecommunication products and services (Majaro, 2013).
 Develop effective product: Through this firm also able to know need, demand and
requirement of potential customers which help them in develop appropriate
telecommunication products and services.
These are the main benefits which are gain by British Telecom when they adopt effective
international market and for this a firm can adopt number of methods, process of selecting
international market is given below:-
According to this process British Telecom need to conduct market analysis through
conducting segmentation, targeting and positioning. Then they need to gather relevant data of
each and every targeted company so that they can know about them properly. After that at the
third stage management of respective company will be analyse the relevant data or informations
which are gathers for identifying most profitable nation. In next phase British Telecom
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Illustration 1: Internation market selection process
(Source: Foreign Market Selection – Managerial Issues, 2019)

management will filter less promising nation and at last they will select most promising countries
where they can grow business internationally.
P4. Explain using examples the different market entry strategies, including the advantages and
disadvantages of each
There are numbers of method which a company can adopt in order to conduct entry into
new profitable market. Through effective method firm can expand business impressively which
lead to attainment of high profit and market shares. Some of the main methods which can be
used by British Telecom are mentioned below along with their advantages and disadvantages:-
Methods About Advantages Disadvantages
Licensing It is considered as
business arrangement,
according to which
company need to
authorise other firm by
issuing them license
for accessing their
intellectual property
rights (Mathews and
et. al., 2016).
 This will
include low
financial risk.
 It include Low
cost way for
assessing
market
potential.
 This will help
in avoiding
tariffs,
restriction on
foreign
investment and
so on.
 Through this
firm can focus
only limited
market.
 It will be
totally depend
upon the
licensee.
 It may arise
potential
conflicts with
the licensee.
Franchising It is consider as legal
authorization granted
by a company or
government to other
individual or group in
order to enable them to
 This will lead
to
establishment
of trademark or
proper business
system.
 Cost of
providing
franchise is
high (Tan and
Sousa, 2013).
 Their is also
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conduct their specific
commercial activities
at potential market.
 Through
Franchisor's
technique,
training,
managerial and
support
business
conduct
effectively at
every location.
 This will
minimising
growth risk for
business.
restriction on
the creativity.
 High risk of
fraud,
misunderstandi
ng and so on.
 Their is also
situation for
failure at
specific
location.
M2. Apply the market evaluation criteria entry strategies and make recommendations for
selected organization
As per the view point of Terpstra and Sarathy, 2012, there are numbers of entry strategies
which a company may adopt in order to expand their business at the international level. But
before adopt any strategy firm management need to evaluate all strategies briefly so that they can
know about its pro as well as corns. This is essential because it will directly or indirectly them
management in developing most effective decision for their business expansion at the
international market. There are numbers of methods which can be adopted by British Telecom in
order to expand their business operations and functions at the international level such as
licensing, joint venture, exporting, franchising, partnership, buy a company Turnkey project and
many more (Zhou, Wu and Barnes, 2012). But for the respective company most appropriate
strategy for expanding business operations and function internationally will be licensing in which
they can provide license to another company at specific location.
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CONCLUSION
From above discussed points it can be conclude or summarise that international
marketing is every essential for a company because through it they can conduct various activities
in impressive way which lead to attainment of high profitability. During expanding business at
international level company go through several challenges like unstable economy, political
situation and so on. But along with this they also gain some benefits like enhance in market size,
customers base and so on. Moreover a firm can also select process for selecting international
market where they can expand their business. In addition to there are also various method which
a company can adopt for entering into new marketplace such as franchising, licensing, joint
venture and many more. So it is essential for companies to conduct proper analysis of market and
their capabilities before selecting method or process for expanding business at international
level.
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REFRENCES
Books and journals
Akaka, M.A., Vargo, S.L. and Lusch, R.F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of International
Marketing. 21(4). pp.1-20.
Baack, D.W., Harris, E.G. and Baack, D., 2013. International marketing. Sage.
Berthon, P.R. and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). pp.261-271.
Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
Ford, I.D. and Leonidou, L.C., 2013. Research developments in international marketing. New
Perspectives on International Market-ing, edited by SJ Paliwoda, pp.3-32.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach
to World Markets. Routledge.
Mathews, S. and et. al., 2016. Internet marketing capabilities and international market
growth. International Business Review. 25(4). pp.820-830.
Tan, Q. and Sousa, C.M., 2013. International marketing standardization. Management
international review. 53(5). pp.711-739.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Zhou, L., Wu, A. and Barnes, B.R., 2012. The effects of early internationalization on
performance outcomes in young international ventures: the mediating role of marketing
capabilities. Journal of International Marketing. 20(4). pp.25-45.
Online
Business Opportunities in the International Markets. 2019. [Online]. Available
through:<https://myventurepad.com/business-opportunities-international-markets/>.
Foreign Market Selection – Managerial Issues. 2019. [Online]. Available
through:<https://slideplayer.com/slide/7735571/>.
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