International Marketing Management

This report discusses the evolution of the furniture market with globalization and current global trends that affect its market in the next 5 years. It also covers international market research, consumer behavior in the market, and suitable marketing strategy for international marketing management.

International
Marketing
Management

EXECUTIVE SUMMARY
This report will show how it is necessary for the company to analyze all the aspects before
entering into international market. Also this report covers a brief aspect of the consumer buying
behavior in Germany for goods which are related to furnished goods.

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
Evolution of furniture market with globalization and current global trends that affect its
market in next 5 years..................................................................................................................5
TASK 2............................................................................................................................................6
International Market Research.....................................................................................................6
TASK 3............................................................................................................................................7
Consumer behavior in the market................................................................................................7
TASK 4............................................................................................................................................8
Suitable marketing strategy.........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International marketing involves the firm in making one or more marketing mix decisions across
national boundaries. At its most complex level, it involves the firm in establishing manufacturing
facilities overseas and coordinating marketing strategies across the globe. The Atrium is the
largest Home Furnishings and Giftware Store in Malta. We have instilled a new level of
excellence for interior design and décor in Malta. This report includes topics such as Evolution
of furniture market with globalization and current global trends that affect its market in next 5
years. International Market Research. Behavior of consumers in the market and suitable
marketing strategy for the company (Hapsari, Stoffers and Gunawan, 2017).
TASK 1
Evolution of furniture market with globalization and current global trends that affect its
market in next 5 years
Globalization has led the companies such as The Atrium to be more prevalent and work on the
strategies which are beneficial for them in the long run. Many companies focus on gaining the
aspect of competitive advantage in order to expand their business in different countries. Before
entering into different markets businesses such as The Atrium assess the threat in both their
home country that is Malta and the country where they are looking for expansion such as
Germany. Many aspects such as advancement in communication, technologies for transportation,
interchange of electronic data, planning of resources, marketing and management and
availability of finance in international markets have helped small businesses to tap international
markets. Furniture comes under those category of products which makes their own path for
internationalization. On the other hand technology used in the stages of manufacturing differs on
the resources of the country. Currently the demand for wood furniture products of the company
is high but it is a competitive market as there is a high level of competition in the market. The
Atrium keeps and plans a regular change in their strategies so that they can survive in the market
and work up with the competition (Yang, 2018).

According to a thorough analysis and forecasting of the market for furniture goods it has
been assessed that the growth rate is 5.2 per cent from the year 2018 to 2023. On the other hand
introduction of online platforms has affected the sales of domestic retailers but because of its
convenience and wider access to different regions the overall sales has been gradually increased.
Many of the companies offers categories of DIY furniture products which stands for do it
yourself. This makes the price of the furniture very less and affordable for the consumer which
helps to achieve growth in the market. The Atrium is working on bettering the designs of their
wood products as they have high demand because of various reason such as their appeal,
durability. Other than this increase of e-commerce channels is also increasing the sales of the
furniture products as it is changing the dynamics of the market. There are many companies
which The Atrium needs to assess their competitors such as IKEA, Century Furniture, Heritage
Home, Masco Corporation etc (Morgan, Feng and Whitler, 2018).
TASK 2
International Market Research
Pestle Analysis-
Political Factors-
Before entering into new markets such as Germany The Atrium needs to have a look at
their regulations and the stability of political factors with the interference level of the
government in business. If the political factors of the country is not stable then it will affect the
flow of income in the business. For instance if the government of the country is rigid then it will
be difficult for the company to import or export goods because of the imposed restrictions (Lin,
2019).
Economic Factors-
These factors are concerned with the rate of inflation, rate of growth, rate of employment
and rate of taxes etc. Company needs to assess the average level of income and the standard of
living of people in the country before launching the product into the market. Company must set

the prices of the products according to that so that they can survive in the market for a long
period of time and achieve growth (Samiee, 2020).
Social Factors-
These factors are concerned with the differences in culture, beliefs, religion and values of
people. Company needs to keep this in mind that with satisfying the needs of the consumers they
need to value the cultural beliefs of people and respect them so that they can generate an appeal
of their brand in the eyes of the consumers. If these values are not respected The Atrium will
suffer from huge losses.
Technological Factors-
These factors are concerned with the advancement of factors to enhance the visibility of
business and attract the consumers. For instance furniture today can be bought online instead of
only getting it from retail. Also many business has their own website and people in Germany
prefers new mode of technological methods as it is more convenient for them. These factors will
help the company to increase awareness of the brand, increase their loyalty. With this The
Atrium can easily attract and enhance their customer base in Germany.
Legal Factors-
These factors are concerned with following the protocols and guidelines of the country in
order to maintain the operations with proper flow. If the company does not follow these
measures then they will have to face lawsuits which will affect the goodwill of the company in
the market and affect its share in the market. Most of the companies dealing in this sector does
not follow labor laws which affects the employment level of the company.
Environmental Factors-
These factors are concerned with protecting the environment and invest in resources
which does not harm it. The Atrium needs to work with the energy and resources which are
renewable so that it does not affect the environment. Other than this it will also help the company
to build up a reputation in the market which will increase the sale of their products (Hollensen,
2019).

TASK 3
Consumer behavior in the market
Germany is categorized into the mass consumer society. People there don’t usually buy
goods on the basis of price instead they make a purchase when they have a full and thorough
knowledge about the product and if it is suitable according to their use and needs. Other than this
they compare one product with the other offering by the competitors so that they can get to know
about their features according to their price. After a thorough analysis has been done then only
they will make a purchase. Consumers residing in Germany often have a high demand from their
products as compared to consumers in other countries. Some of them are even ready to pay more
for their product if the quality of product matches up to their expectations. There is one positive
factor for The Atrium that is people of Germany do not ignore new entrants in the market.
Germany has the widest e-commerce network in Europe which makes it necessary for the
company to use this platform to enhance their sales and increase the awareness of the brand. If
they need to survive in Germany with a long term growth then they will need to work on
upgrading the quality as the consumers there are quality conscious rather than price conscious.
They are loyal to those brands who provide them quality products. They get influenced by
comments on social media or from word of mouth so the company needs to work on maintaining
its image positively. Furniture takes up a lot of wood and causes damage to the environment
people of Germany are against this clause so The Atrium needs to work on this aspect and
manufacture the goods with minimum level of damage and waste to the environment. The main
area of focus that the company needs to keep in mind is that most of the buyers in the country are
shifting into online markets which makes it necessary for the company to make online presence
and establish it so that they can attain growth in the market. It was recorded that out of the total
population Germany has 37 per cent of them bought furniture online. Also the company needs to
provide the product with detailed information and give an option to compare it with the product
of the competitor so that they can know that they are making the right decision according to their
suitability. Consumers prefer buying online because they have access to many things just from
their home and it creates a sense of convenience (Kaleka and Morgan, 2019).

TASK 4
Suitable marketing strategy
Social Media Marketing-
This is a necessary aspect for The Atrium as people of Germany are familiar and used to
with this aspect on a daily basis. Promoting their business on a day to day basis will target a large
audience which will help the company to increase their share in the market. This channel not
only includes face book, twitter and Instagram but there are also different mediums available
which can be taken into help to target new and more audience. For instance there are platforms
such as Quora and Reddit which are known as non traditional social sites. These sites has turned
out to be more beneficial for the businesses as it helps them to specify their customers according
to their needs. The Atrium needs to keep in mind that if this is done successfully then this
medium can also be used as public relations. This way the company can gain more recognition
for the brand. This platform allows The Atrium to interact with their consumers on a personal
level which will help the company to improve the return on investment and increase their value
in the market (Gnizy, 2016).
Updating the website-
Population of Germany is shifting from traditional means of business to online business
in huge numbers. This increase the chances that consumers will be looking at the website of the
business and if they find the same thing for a long time then they will loose their interest and
switch to another competitors. Company does not need to offer something new every time at
their page instead they can keep on updating the old content by making some slight changes to it.
There are many ways to do it such as combine it with other posts (Kotler and et.al., 2018).
CONCLUSION
From the above studies it has been concluded that in order to expand a business and make it a
international venture company needs to assess all the factors which involves risk so that it can be
minimized and demand of the specific markets can be met. With the help of pestle analysis
company has got an insight of the market and buying behavior of people in Germany. Also two
types of marketing strategies are suitable for the company that is social media marketing with

non traditional platforms and update the content on a regular basis. Company needs to keep in
mind that the store needs to use the resources in an optimum manner and minimize waste as
people there are concerned for the environment and prefer those companies who uses renewable
energy. Company also needs to make an effective online platform an establish it as people there
are shifting to online markets. Apart from this they need to maintain the quality of the product
otherwise they won’t be able to survive in the market.
REFERENCES
Books and Journal
Kotler, P., and et.al., 2018. Marketing management: an Asian perspective. Pearson.
Kaleka, A. and Morgan, N.A., 2019. How marketing capabilities and current performance drive
strategic intentions in international markets. Industrial Marketing Management, 78, pp.108-121.
Lin, S.M., 2019, November. The Practice Research of Flipped-Classroom Combined Mobile
Action Learning in International Marketing Management Course. In Proceedings of the 2019 3rd
International Conference on Education and E-Learning (pp. 73-78).

Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing, 26(1), pp.61-95.
Gnizy, I., 2016. Power dynamics of the international marketing within firms and how they shape
international performance. Industrial Marketing Management, 57, pp.148-158.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Hapsari, C., Stoffers, J. and Gunawan, A., 2017. The influence of perceived cultural and business
distance on international marketing strategy decisions; A case study of Telkom Indonesia
International. International Review of Management and Marketing, 7(3).
Yang, M., 2018. International entrepreneurial marketing strategies of MNCs: Bricolage as
practiced by marketing managers. International Business Review, 27(5), pp.1045-1056.