International Marketing: Strategies and Challenges

This document provides an overview of international marketing and its importance in business strategies. It discusses the market selection process, key success factors, and market entry strategies. The case study focuses on Ma Baker, a small bakery in London, and its plans for international expansion. The document also highlights the challenges and opportunities associated with international marketing.

International
Marketing
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Contents
INTRODUCTION...........................................................................................................................2
LO1 Demonstrate an understanding of how marketing contributes to business strategies in an
international context........................................................................................................................3
LO2: Evaluate entry to a selection of international markets and define the key success factor......7
LO3 3 Investigate how elements of the marketing plan can be adapted or standardised across
international markets.....................................................................................................................11
LO4 Demonstrate an understanding of how to organise and evaluate international marketing
efforts (multinational, global, transnational, meta-national, etc.)..................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17
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INTRODUCTION
International marketing is an application of marketing principles in order to fulfil the varied
requirements & wants of different people living across national boundaries. It is also known as
global marketing that is designing & developing marketing mix worldwide and then customize it
as per the preference of different nation people (Armstrong, 2018). This marketing principle is
applicable to more than one country or across the borders. One of the essential function that
plays important role in an organisation is marketing as it help in attracting more number of
people towards goods and services offered by an entity which has a positive impact on sales as
well as profitability of a company. The current report is based on Ma Baker, which is a small
bakery located in the Fulham, London, United Kingdom. The report covers introduction of
company along with its existing market share. Difference among local & global marketing. In
addition to this, the file discuss international marketing approaches & a comparison of
international & home orientation. Moreover, the report covers scope of international marketing,
challenges and opportunities associated with it and the different routes of international
marketing.
LO1 Demonstrate an understanding of how marketing contributes to business strategies in
an international context.
Introduction to company & current market
Ma Bakery is a small bakery that is located in Fulham, London. The company offer fresh
& home-made breads which is made of stone ground flour. At present, the company is operating
in London and is renowned to deliver excellent goods and services to the consumers prevailing
in market. Ma Bakery also gives online classes about processing of its breads & is listed as
leading class to be taken in Fulham, London.
Scope & concepts of international marketing
As per the view point of Czinkota and Ronkainen, (2013), International marketing consist
of procedures, activities & institutions beyond the national boundaries that tend to develop,
exchange, communicate offerings which hold important value for stakeholders and society as
well.
According to the perception of Armstrong(2015), It is defined as an application of
capabilities & orientation of marketing onto businesses that exist across the borders.
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Scope
International marketing is termed as the performance of business operations and activities
that involves flow of goods and services of an organisation in more than one country. The main
reason to do marketing at international level is to earn higher profits and enhance market share of
the company. In this competitive world, the scope of international marketing is wide and main
function is to enhance awareness globally in these corporate world. The scope is defined below:
Imports: It is consider as one of the easiest mode of international marketing wherein
companies import goods from other country and sell it to target as well as potential customers
prevailing in the domestic market.
Exports: In this, organisations export raw materials or finished products to their franchise
or international market in order to provide them possibility to sell goods within the local market
and earn higher profits (Bertoli and Valdani, 2018). The revenue developed by companies
through export is used in making payments, covered cost that is occurred in development of
goods.
Contractual agreements: International marketing gives an opportunity to companies to
expand business activities, increase customer base level, raise sales and profit, market share and
many more. For this, the company is enter into a contractual agreement with the overseas
partners in order to carry out expansion activities.
Fully owned manufacturing: An organisation who have interest in foreign markets can
develop filly owned manufacturing in that particular country. The factors which encouraged
companies to establish production unit across borders are government policies, cost differences,
trade barriers and so on.
Key Concepts:
There are various number of concepts that is associated with international marketing are
as follows:
Domestic marketing: Herein, the marketing activities is only target the people living in
home country. This is adopt by those companies who does not have any intention to going
worldwide and only want to operate domestically.
Comparative marketing: It is define as when number of marketing strategies is studied
together in order to know the dissimilarities and similarities among them defined as comparative
marketing.
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International Trade: It is mainly concerned with flow of goods and services between the
nations. The main objective here is to gain an insight regarding monetary and commercial
conditions on the resources transfer among nations & BOP that is balance of payments.
Main difference among international & local marketing
Local marketing is defined as conducting marketing activities within the geographical
boundaries or in the domestic marketing. If it is talked about international marketing, it is
implement operations and activities outside the home country or across the boundaries of nation.
In local marketing, companies mainly focuses on gaining knowledge regarding domestic values
& beliefs whereas in international marketing it is difficult to understand the nature and value if
customers. Local marketing uses cheaper methods like discounts, special offers, inserts in
newspaper whereas international marketing is done by using various promotional tools and social
media applications.
Rationale for company to want market internationally
Ma Bakery is a small bakery which is situated in London and offers home-made breads in
market. The company is well renowned in London and winning rewards due to its quality
products as well as services. Considering on the success gained by Ma Baker from last years, the
entity is considering option to expand business internationally. It is important for Ma Baker to
market internationally which will help in raising customer base as well as market share in an
effective manner. When this enterprise will enter into international market, it can gain the
advantage of gaining eyes of people by establishing outlet in an attractive and unique manner. It
will also help them to build a positive image in market and gain high success within the
marketplace.
Moreover, by gaining opportunity in international market, it will be willing to deal with
risk which is interlinked with sales from home country to across borders. For example, If this
enterprise market its product and services for local customers that directly place an economic
downturn due to which large number of people will not willing to afford goods sold by Ma
Baker. Therefore, Ma Baker is able to marketing its offering internationally that ensure stability
in market along with continue flow of EPS (Earning per share) and revenue. It is important for
Ma Baker to enter into international market and implement marketing activities globally as it will
help them to strengthen their market position and earn higher profits.
International marketing Routes
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Every organisation can market internationally in order to gain attention of maximum
number of people towards product offered by company in market. With reference to Ma Baker, it
offer breads which are preservative & additive free and includes all ingredients that is organic
and of high quality. Ma Baker can undertake two routes to internationally market its offerings
which are as follows:
Direct Route: It involves those channels where an entity directly comes into contact with
people in international markets in order to persuade them to buy goods which are offered by
enterprise. Ma Baker has the capability to adopt channels such as offering websites deliveries,
sales representative, conducting exhibitions in order to develop direct contact with customers and
to leave a good impression in mind set of customers.
Indirect Route: It involves channels where an entity enter or make a contract with third
party & than delegating responsibility to of influencing consumer towards them. Ma Baker can
undertake various options such as OEM partners, Alliance partners, System integrators, Channel
partners and many more in order to attract population of foreign county. These options are
discussed below:
Alliance Partners: These consist of groups that are smaller in size and having the
capacity to advise Ma Baker about business initiatives that can be consider by them to develop
strong entry in other country.
Channel partners: It is define as those companies which consist of technical expertise to
effect the customers mind positively. It involves value added resellers, distribution partners,
resellers that assist Ma Baker to market internationally.
It is suggested to Ma Baker to adopt channel partners as a route to market internationally
its offering. It helps on providing latest techniques and also provide equipment’s that can
develop an edge to Ma Baker to fight with their rivals in that particular industry.
Opportunities & challenges associated with international marketing
International marketing allow a company to gain number of opportunities and helps in
increasing profits as well as market share. The international marketing is associated with various
challenges and opportunities which are as follows:
Opportunities
Raise in profitability: By the assistance of international marketing, Ma baker will have
the have the opportunity to increases its sales level and earn higher profits. International
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marketing provide opportunities to this entity by giving excellent material, infrastructural
facilities, labour that help in cut down the cost and increasing profit level of Ma Bakery.
Market Infrastructure: By entering into international market, Ma Baker will gain an
opportunity of the high level infrastructure development within the market. After this, Ma Baker
will be willing to depend on communication, transportation, energy infrastructure system of that
particular nation. It will be easier and cost effective for the Ma bakery to implement activities in
those countries where developed and reliable infrastructure is available.
Challenges
Language: The language of countries is different and thus create an issue for companies
while they market internationally. It is important for Ma Baker to gain proper knowledge and
review the tag line and brand name before the market it at international level. The example of
these problem that is of different language is given below:
(Source: Different Cultural Meanings of Colours and Numbers, 2019)
Laws & Regulations: At the time of marketing internationally, it is essential for Ma
Baker to undertake all legal aspects like trade barriers, intellectual property rights, taxation,
customs and so on. This will assist in smoothly carried out marketing activities as well as
operations.
Produce a critical evaluation of the international market context, including insight into how
your chosen client organisation should adapt their marketing strategies for various markets
International marketing help an organisation to promote its brand globally and attain
various opportunities in an effective manner. In addition to this, it is the company can make use
of indirect routes that is developing channel partners or alliance partners in order enhance its
market at international level. The company can adopt various marketing strategies by adapting
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Illustration 1: Different Cultural Meanings of Colours and Numbers

following all the laws and legislations such as taxation, customs and many more in order to deal
with various markets.
LO2: Evaluate entry to a selection of international markets and define the key
success factor
Key criteria & selection process while emerging international market
Market selection plays an important role for Ma Baler as this assist company to gain
success and growth in international market. The selection process is mentioned below:
International Marketing aim & objective: The market selection is based on the objectives
that is developed by companies in order to enter into market place. It is important for an entity to
ensure that religious values, economical. Ethical, cultural value of foreign country are not
violated by products offered by Ma Baker.
Parameters of selection: The different parameters that is taken into consideration by Ma
Baker at the time of entering into international market are competitor’s position, availability of
materials & infrastructure, market conditions, governmental regulations and many more.
Preliminary screening: Herein, the marketers who does not have the ability to serve as
lucrative location for the organization are eliminated after undertaking factors like population
size, consumer behaviour, and per capita income and so on.
Analysis & selection: Herein, all the short list markets are evaluated by conducting
feasibility study & cost benefit analysis. Out of this, the best market is selected in order to make
expansion of Ma Baker in international market.
Test marketing: Herein, an entity sell goods in a specific segment of geographical location
in order to gain knowledge about consumer behaviour & perception regarding the goods produce
by Ma Baker.
Commercial production: If the test marketing results positive then companies implement
out mass production for the selected international market.
Key criteria
The criteria for choosing international geographical are to market is given below:
Infrastructure facilities: one of the most essential thing that is need to be considered for
international marketing is availability of infrastructure as it ensure high production to Ma Baker.
Competition: In order to select market, it is important to consider threat of competitors
prevailing in the market place along with their strategies.
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Laws & Regulations: Ma Baker require to undertake all the legislation of the particular
international market in order to smoothly and properly carried out activities as well as
operations.
After implementing the selection process and consider the key criteria, the market which
is chosen by marketing consultancy in order to expand business of Ma Baker is Dubai.
Market entry Strategies
There are many methods as well as strategies for entering into international markets which
help companies to successfully do expansion of business activities or operations in a proper
manner. There are various strategies that can be adopted by Ma Baker is defined below:
Strategy Sub Types/
Description
Advantage Disadvantage
Export By foreign agents
 Entry cost is low
 Less financial risk
 Easy to overcome
with to problems of
entry.
 Less profits on
transaction.
 More dependency
on foreign agent
 Unable to gain
international
experience
By foreign distributor  Low requirements
of employees
 Low marketing cost
 High cost of
transportation
 High barriers of
trade
Licensing Sales of rights that is
backed up by
intellectual property is
to be utilised for
commercial purpose
within foreign market.
 Low entry cost
 Less financial risk
 Gain knowledge
regarding local
conditions through
licensee
 Low control on
quality maintenance
within foreign
market
 Lower income
(roylaties)
 Fear of disloyalty of
licensee
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Franchising The right of sale is
given to domestic
franchisor who
implement activities
by foreign franchisee
 Chance of higher
expansion
 Less cost of entry
 Need to control cost
 Profit sharing
among domestic
franchisor and
franchisee
 There might be
chance of
franchisee
disloyalty.
Application of market evaluation criteria, entry strategies & recommendations
By properly implementing selection process & identifying evaluation criterial, the country
which is selected for expansion is Dubai. The infrastructure facilities of Dubai is excellent along
with this there is easy availability of raw material that help in carrying out operations in a proper
manner and gain higher success. It is determined that UAE ranks 66th in bakery products
worldwide and gain higher success between the year 2010 to 2014. Ma Baker have the
opportunity to target health conscious people as there are many Emirati who prefer to eat fresh as
well as organic food. The Bakery sector in Dubai is growing rapidly that us at the raete of 7% per
annum.
(Source: Retail Volume in Tonne - Bakery Products Subsectors in UAE, 2019)
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Illustration 2: Retail Volume in Tonne - Bakery Products Subsectors in UAE

From the above discussion, it is suggested to Ma Baker to use licensing method as a market entry
strategy that will ensure sustainability in market for longer time frame. Along with this, this
mode occurs less cost and involve less financial risk.
Difference among local & global marketing
BASIS LOCAL MARKETING GLOBAL MARKETING
Scale of
operations
In the local marketing, promotional
activities, sales & distribution take
place at local level.
Herein, all activities of entity
implement at global level.
Risk and ease The risk in local market is low &
also easier to facilitate as well as to
execute.
The global marketing contains high
risk which is sometime complex to
overcome.
Financial
Resources
There is low requirement of funds in
order to operate in a local market.
For global marketing, an entity require
to have large investment as it mainly
deal with other countries.
Example Ma Baker is such an instance of local
marketing as they adopt strategies
like online classes & social that help
in gaining attraction of large number
of population.
Airbnb is the example of global
marketing that conduct a social media
campaign named as “One Less
Stranger”. This help company to
enhance profitability level by
attracting large number of population
globally.
LO3 3 Investigate how elements of the marketing plan can be adapted or
standardised across international markets.
Key arguments in context of local against global marketing
It has been analysed that there is an enormous difference between the style of working of
local and international market. In reference of international market, if there is any type of issues
and problems occur then it becomes difficult for them to tackle the situation in an appropriate
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manner because they have less knowledge as well as information. But in reference of Domestic
market, it is easy to tackle any difficult situation in easy manner. As per the point of view of
some author, it has been analysed that there is a huge amount of opportunity which is prevailing
in the international market but with high level of risk. In addition to this, there is a need of huge
amount of fund to operate the function and activities of business at global level. Thus, it is
necessary for the manager of company to assess the overall condition of market in an appropriate
manner. Apart from this, it is necessary to have adequate finance, resources as well as
infrastructure for operating the business activities and function at global level. Therefore, the
manager make suitable strategies, policies and procedure in order to assess the need of fund and
resources to run the business successfully.
It has been analysed that, there is a need of less amount of fund as well as resources in
order to operate the business activities and function at domestic level. Apart from this, the risk
associated with this market is less and minimum level of competition prevailing in order to rune
business at national level (Usunier and Shaner, 2017). In context of Ma Baker, the manager make
effective strategies, policies and procedure for offer superior quality products and services to its
customer according to their need and requirements. Moreover, in case of international market, it
has been analysed that they possess the effective information in order to fulfil the need and
requirement of customer. Also, they have a knowledge regarding how ethical and legal factor
directly affect the operation and functioning of business organisation. In case of Domestic
market, it is easy for the business firm to enhance the fund in easy way in order to operate the
function and activities of the company smoothly. It helps in boosting the sales and growth of
business organisation in future period of time.
Evaluate the context and circumstances in which your client organisation should adopt a
global or local approach, highlighting the implications of doing so.
It has been said that there is a large difference among the working style of local as well as
international market. In context of international market if there is any kind of problem arises then
it is tough for them to handle the condition in better way because of they have less skill as well
as knowledge. In context of domestic market it is easy for organisation to handle the tough
situation in better way because they have a necessary knowledge and skill during the period of
time.
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Examination of pricing, product, promotion as well as distribution approaches
When the business firm take entrance in the new market place, it is important to make all
the business activities and function in an effective manner in order to gain favourable outcomes.
Apart from this, it is vital to analyse the changes and alteration which tale place in both domestic
and international market in order to make appropriate strategy which helps in increasing the
future sales as well as profitability level. In reference of both domestic and global market, the
product, place, price as well as promotion which is going to be mentioned below:
Element London, UK Global Markets (Asian Countries)
PRODUCT It has been analysed that, Ma
Baker is a business organisation
which offer superior quality
fruits, jams as well as beverages
to its buyer. In addition to this,
they have their own farmhouses
so that they take the use of fresh
fruits in order to make jams and
beverages.
In addition to this, the supervisor of
business firm focuses on running their
business activities and operations in
Asian countries in order to provide the
products which includes fruit juices as
well as Jams.
PRICE In reference of domestic
marketplace, there are high level
of competition in relation to
pricing strategy of UK prevailing
in the market because there are
ample of companies deal in
similar segment.
Whereas, in context of international
market, the manager uses the price
skimming strategy that helps in boosting
the good brand image and reputation of
company in order to gain competitive
advantage over rival firm in the market.
PROMOTION In context of Ma Baker, the
manager adopt different
promotional technique such as
advertisement, personal selling as
well as publicity in order to
On the other hand, in reference of
international market, there are various
tool which is adopted by the company
such as event, sponsorship as well as
brand ambassador for promoting the
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promote their products and
services at marketplace.
product in the market.
DISTRIBUTIO
N
In reference of local market, the
delivery of goods and services is
through the online sources as well
as physical outlet in the UK
market.
The global market fixes the stall at
various exhibition for maintaining the
goods and services which is provided by
the business firm.
Determine and articulate in detail how to adopt marketing mix of your client organisation in
different international market.
Marketing mix is integration of the different methods product, price, place, promotion
process, people as well as promotion the manager focuses on providing superior quality product
and services at affordable cost in order to retain the customer for a long period of time. In
addition to this they use effective promotional technique in order to promote the product and
services at Marketplace. The marketing mix is used by Organisation in various international
market in order to promote their product.
Produce a critical evaluation of how marketing mix is applied to a range of international
context.
Marketing mix is applied to a range of international context in the sense that it is necessary
to assess marketing mix for implementing effective strategy and tactics in international market.
Before launching the innovative product it is necessary for manager of company to promote their
product in new market and also provide high quality products customer at affordable cost.
LO4 Demonstrate an understanding of how to organise and evaluate
international marketing efforts (multinational, global, transnational,
meta-national, etc.)
International marketing approaches
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Multinational: Herein, the companies have outlet located in multiple countries that is
function or operates in its own manner. For instance, McDonald’s
Global: Herein, an entity have outlets in multiple countries but they are operated in a
consistent manner and follows a uniform culture which help in facilitating efficient and effective
single global company. For example, Apple, Starbucks and Airbnb etc.
Transactional: Herein, companies with complex nature & develop substantial facilities
at the time of conducting business in one or more than one nation. For example: Nestle.
From the above discussion, it is analysed that Ma bakers can adopt Multinational
marketing approach as it help in open outlets at various locations in an effective manner. In
addition to this, the culture of countries is different and to use such international marketing
approach help Ma baker to offer products accordingly and attract people that leads to raise in
sales and profitability in a proper manner.
Porter’s five-force model:
This model is used by companies in order to gain an understanding about level of
competition prevailing at marketplace. In addition to this, it help an entity to develop effective
strategy and retain in market for longer time period. This model consist of five competitive
forces that is defined below in relation to Ma baker:
Threat of new entry: It is determined that threat of new entrant is high for company as
to open such form of business, it is easy and does not require higher investment. It is important
for Ma Baker to provide quality service to its customers and maintain good relationship with
them so that they did not shift to another company.
Threat of Substitutes: There are lot of companies offer same product in market and
therefore, this threat is high for Ma baker. In order to deal with this, it is essential for company to
make use of competitive pricing strategy as it help in attracting more number of people that
increase in customer base and sales in an appropriate manner.
Bargaining power of buyers: Herein, the customers have the choice to shift to another
brand if they mode other offerings more beneficial. In order to decline this threat, it is suggested
to Ma baker to develop good relation with them and focus on satisfying their requirements as it
help in developing loyal customers that did not shift to another company.
Bargaining power of suppliers: This threat is low for Ma baker as there are lot of
suppliers in market who offer raw materials in a proper manner. The company can shift to
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another supplier easily who provide similar quality raw material at low price as it increases
revenue of Ma baker in an effective manner.
Competitive Rivalry: It is determine that this threat is high for Ma baker as there many
renowned bakeries is situated in UK. In order to remain in competition, it is significant for Ma
baker to offer unique and quality products as it help in attracting people that has positive impact
on sales as well as profitability level of company.
Home Vs International orientation with their ways to assess competitors
Home orientation is defined as an approach where an entity member focuses only on the
similarities between markets & assumes that goods as well as services that has get success in
domestic market will also gain success in other market also.
Ways to assess competitors: Home orientation approach perceive that power of rivals is not
cause damage to reputation of an entity (Solberg, 2017). In addition to this, home orientation tens
to develop confidence in goods and services offered by the enterprise and therefore consider
threat of competitors low.
International orientation termed as an approach that is based on the assumption that
similarities & differences between various markets easily spread across national boundaries.
Ways to assess competitors: International orientation approach perceive that competitors threat is
high & they have the willingness to decline market position and goodwill within the global
market.
Conclusion & Recommendation for companies to enter into international market
From the above study, it is determined that international marketing is one of the feasible as
well as lucrative manner for companies to carry out business expansion. It has been analysed that
marketing internationally provide ample number of opportunities and raise challenges that us
require to be consider by marketing consultant of the organisation. In order to enter into
international, the entity have direct as well as indirect route. It is suggested to enterprise to adopt
licensing method as it involves less financial risk and occur less cost to company.
CONCLUSION
From the above study, it has been concluded that there are various marketing strategies
which is adopt by company after considering advantages and disadvantages so that business
expansion take place in a proper and effective manner. These strategies are franchising,
licensing, joint venture and many more. In addition to this, there are different international
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marketing approaches such as global, multinational, Meta national, transnational that can be used
by an entity in order to increase customer that has positive effect on sales as well as profit of a
company.
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