International Marketing: Scope, Concepts, and Strategies

This document provides an overview of international marketing, including its scope and key concepts. It explores the rationale behind international marketing and discusses the key criteria for selecting the correct expansion strategy. The document also highlights the difference in the 4P's of international marketing and provides insights into House of Fraser's potential international expansion.

INTERNATIONAL
MARKEITNG

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
Scope and key concepts of international marketing....................................................................3
Rationale behind international marketing....................................................................................4
LO 2.................................................................................................................................................5
Key criteria and selection process for identification of correct expansion strategy....................5
Market entry strategies................................................................................................................6
LO 3.................................................................................................................................................8
Global versus local debate...........................................................................................................8
Difference of 4P’s in international marketing.............................................................................9
LO 4...............................................................................................................................................10
Different international marketing approaches...........................................................................10
Home and international orientation, ways to analyse competitors............................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International marketing refers to the marketing activities that are undertaken while a
company is operating in the international markets or trade (Suroso, 2017). House of Fraser
operates solely in the UK and Ireland despite having a huge popularity of the stores and high
potential as well. The report will identify the different international expansion strategies that can
be adopted by the company and the manner in which the entire process can take place.
MAIN BODY
LO 1
Scope and key concepts of international marketing
The concept that lies behind the international marketing is related to the fact that the
organization engages in trading and business activities at an international level so that the better
exposure can be attained for a company (Poudel and Rimal, 2019). The scope of the international
marketing activity can be analysed as the one where the following aspects are impacted:
 The scope of the international marketing lies in the fact that the overall business and
exposure of a company can increase the access of the business in the international market
and it can also lead to a better interaction and formulation of trade practices between the
countries.
 As the organisations keeps on expanding into more and more countries, the scope of that
organizations also increases and this ultimately creates a better opportunity for the
organisations as a whole. Therefore, the exposure of the company or whichever brands
they are representing also gets affected by the practice of international expansion.
 Facilitating and increasing trade between two countries can also significantly affect the
trade relations of that countries and it can even contribute in increasing the global peace
and reduction in the animosity.
Overall, the scope of the international management helps in analysing that the aspect is
beneficial for both the organisation and for the different companies that are expanding on an
international basis (González and et.al., 2019). For House of Fraser as well, the company has
established a very reputed clothing and retail sector brand but has kept itself limited to UK only
and in some parts of Ireland. The exposure of the international market is a much needed venture
for the company. Increased scope indicates more and better chances at business operation and
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ultimately, thus changing the existing position of the House of Fraser company in the
international retail market.
Rationale behind international marketing
Every company strives to operate and sell its products it he international market as the
quantity and quality of the exposure that the company increases multi fold and the company is
able to generate increased profits at an international level by the increased number of customers
that re attached with the firm. This is the sole reason behind the international marketing that
assists the overall organisation in its growth and expansion. Once company is able to establish
itself successfully, the customer base increases, economies of scale in the entire production
systems can be developed and implemented, the overall revenue generation also increases and
lastly the excess productivity can also be managed effectively. Hence there are multiple reasons
why company should try to go global and expand internationally (Hong and Park, 2018). House
of Fraser can also utilise any of the opportunity thus discussed above behind the exploration in
the international market.
There are a multiple number of ways that can be adopted for the purpose of international
marketing and in order to enter into the trading that takes place between two or more countries:
The imports and exports are one mechanism through which the House of Fraser company can
expand and market themselves in the international marketing. Similarly, the contractual
agreements can be entered into with the companies that are already operating in the international
market. This strategy would not be very beneficial for the company as their name would not be
highlighted much and the company would not be marketed adequately. Joint venture can be used
as a very good technique by the House of Fraser company as they will be able to retain their
original image and brand in the new market and the risk portion is also comparatively much
lower. However, the House of Fraser can even lose their original value due to a joint venture in
the international marketing strategy that they are developing.
All these strategies are basically expansion strategies but the House of Fraser can develop
correct international marketing channels only after adequately analysing the different expansion
options. This will help the company is analysing their own strengths and weaknesses and then
select upon a marketing strategy that will be most rewarding and in accordance with the
expansion options that has been selected upon (TALABPETCH, 2017). The selection of the
correct international expansion and marketing strategy is critical in ensuring that unnecessary
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problems and hurdles are removed and the chances at success are increased. There are various
opportunities as well as the company would be able to not just face the increased exposure that
makes the intentional market much more attractive place to operate and trade with, but the global
brand name and the goodwill that is created, the wide and exciting competition that is faced by
the companies is also a contributor in the reasons for choosing international market. However,
the threats are also inherent in the manner in which the company might not be able to effectively
compete with the brands operating at the international level and this can create a negative impact
on the company and its operations.
LO 2
Key criteria and selection process for identification of correct expansion strategy
The selection of the country in which international expansion is to be carried out is a very
critical process as it was earlier identified and the entire success of the company depends on the
selection of the correct country. There are five major strategies that can be included for this
process of selection by the House of Fraser:
 Identify the Country: Here as the name is evident is to analyse different countries in which
the company can expand by analysing the different factors that are associated with the
countries and then identifying which would be the best country. This can be done for House
of Fraser in context of the different neighbouring countries that will be best for the company
(Hung and Petrick, 2016).
 Preliminary Screening: In the preliminary screening the different countries that were
identified earlier are analysed more closely and the different measuring levels such as
economic indicators, various statistics pertaining to the chosen countries that the adequate
and correct countries can be identified. At this point the House of Fraser can ascertain n that
France and USA are the correct countries for their expansion.
 In- depth screening: After it has been identified that the some if the countries are perfect, at
this stage target market is analysed and the micro economic factors are also identified and
analysed adequately. For House of Fraser, it can be said that France would be a better option
for the expansion but USA also holds adequate potential.
 Final Selection: In this stage, the final selection regarding the country in which expansion is
to be done is identified and selected upon (Tsiamis, 2019). This is done by adequately
analysing h domestic market of the respective countries and then also categorising the
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potential that they have. It can be said that the France is the country that House of Frasers
should select for the further marketing and analysis.
 Direct Experience: This stage states that the personal experience is also critical in
concluding and the selected city should be visited regularly by the marketing and sales
personnel, managers etc. so that the actual market can be analysed and taste and culture can
be identified. Therefore, personnel from House of Frasers should visit the city in order to
take corrective measures.
Market entry strategies
There are a variety of entry modes that are available to organisations such as House of
Frasers through which the expansion can take place easily in the international markets. Further
the advantages and disadvantages for each of the can also be presented in a critical analysis in a
following manner:
Direct Exporting: Direct exporting is the easiest technique that can be adopted by the companies
who are looking out of the international expansion as under this the agents’ works who collect
the good and then sell off to the respective retailers (Solangi and et.al., 2019).
Strengths Weaknesses
For House of Fraser, if they select
this entry mode then the best
situation that would be the is that
the risk will be very low and the
expansion process also becomes
easier overall.
The weakness however is that the
company is not able to create a
name of their own and the brand
values can be lost forever where
the selling company might tend to
be in a profit margin.
Joint Ventures: Joint venture is a significant strategy that can be adopted by the companies
where a partner is identified and then the expansion strategy is formulated accordingly in the
international market (Cherapanukorn and Charoenkwan, 2017).
Strengths Weaknesses
The major strengths of this
technique are that the joint ventures
will help House of Fraser in
targeting an already accumulated
Weakness is that the unique selling
point of the House of Frasers can
be lost permanently and the
innovation and efforts that they are
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market segment with loyal
customers thus developing an easier
entry.
putting in would have to be shared
with the joint venture company.
Licensing/ Franchising: Licensing or franchising is the agreements where the company can
open their stores by either giving away their rights in exchange of certain amount or assets by
company who is receiving such rights. Franchising ob n the other hand signifies an arrangement
where the trademark or brand name is given to be used in their countries (Azam and Gupta,
2018). The strengths and weaknesses can be identified as follow:
Strengths Weaknesses
The investment of the House of
Frasers company that is required in
this type if investment would be
very minimal and brand name can
also be established.
Weakness is that this is not the
correct stagy o give away the
license or trademark to someone
else who can even misuse it thus
creating a further negative
environment for the company in
their international market.
Direct Expansion: The direct expansion of the store is the technique that can be adopted by
brands only when they are extremely confident regarding their sales and acknowledge the fact
that they can easily occupy the market in which they are planning to expand:
Strengths Weaknesses
This technique can be really
effectively for the House of Frasers
company where they can easily
establish the company and can earn
complete profits without giving any
salaries or profits sharing (Ngo
Hung, 2016).
The weakness is that the risk
aspect is very high I such
scenarios and therefore, the
caution needs to be taken since
expansion is an irreversible
decision.
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Overall, the analysis of different entry options in the international market that the House of
Fraser company can adopt collectively point out towards the direct expansion by opening a store
of their own in France. This will help the company in collecting maximum returns and gain
major advantages.
LO 3
Global versus local debate
There have been many arguments on the two different spheres in which a company can
operate and the debate that is still ongoing can be illustrated in following manner:
Global Local
The argument in favour of global
generally inclines towards the facts
that the international exposure is the
key for the development of any
company and therefore, it is
necessary that the company should
go towards the global expansions
(Bharathi and Rajapushpam, 2017).
This not just helps in the international
growth of the company only, but the
domestic country is also benefitted
by the inflow of revenue.
Additionally the branding and goodwill
of a company at a global level
improves the net worth of the
company immensely and they are
able to perform in an enhanced
manner.
 The arguments that have been
presented in the favour of local are
also very intense and accurate i.e.
globalisation of the company leads
to the loss to the local i.e. domestic
suppliers in their industry where the
market of such competitors finishes
off entirely.
 Additionally, the local should be
supported because when the local
products will be manufactured and
sold in the same domestic economy
then automatically the productivity
and profits i.e. the GDP of that
economy will improve immensely
(Desfiandi, Sanusi and SARI, 2017).
Therefore, the global strategy presents itself as a more viable and profitable option along
with the development and expansion as well thus supporting the decision of House of Fraser.
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Difference of 4P’s in international marketing
The manner in which the marketing mix is generally used for the companies operating in
the domestic market tends to change in the international market (Hossain, 2018). The launching
of a product in the international marketing requires the analysis of the various aspects i.e. the 4
P’s as well in a different context. The difference that arises in the analysis thus can be identified
and ascertained for the House of Fraser as well in the following manner:
 Product: In the international marketing, the products are not just specified but are
launched after the analysis of the culture, the taste, the preferences, backgrounds,
religions etc. thus taking into consideration all the aspects so that the product that is
launched can be termed as correct and appropriate. House of Frasers will have to modify
their existing designs and use of colours or patterns along with the preferences of the
public their i.e. they are not big fans of elegant colour but rather prefer use of
extraordinary colours. Therefore, the company will be needed to present its products in
accordance with the preferences of the customers belonging there rather than just sitting
job.
 Price: Pricing is another aspect of marketing mix that becomes extremely complicated in
the international market segment (Nedumaran and Manimegalai, 2018). There are many
additional aspects that need to be considered such as the fluctuation or shift in the
exchange rates of the country, the cost of overall transport, the import duties that are
being charged by the host company, personal disposal income so the target marked who
actually has to spend money. The aspects on which the prices can be compared on the
global level, makes it necessary to incorporate such variety of factors collectively.
Further develop such comprehensive pricing strategy that is in accordance with the
competitive pricing as well. In the House of Fraser, the pricing in France can be done in a
premium pricing manner as the spending power is high and the clothes are in major trend.
 Place: The place aspect is associated with the distribution network as well as the presence
of the company overall in the international market aspects. In the domestic country, the
goods are simply moved from the manufacturers to the retail stores and distribution
outlets thus keeping this aspect simplified. Now in international markets, there are not too
many distribution outlets and hence they have to be ascertained accordingly
(Karatsevidis, 2016). For the House of Fraser Company it can be adequately said that the
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place of distribution would be through central manufacturer who would supply to the
initial two offline stores and then expansion can take place accordingly.
 Promotion: The promotional aspect in the marketing mix has never been simplified
whether it is the domestic market or it is the new international market. The evolution of
so many technological platforms and the pursuance of the traditional promotional
methods as well levels it would complete and contracted out of their duties which are yet
to be completed accordingly. Hence for the House of Fraser Company, the social media
marketing tools can be used rigorously ad he correct advertisements drives sand strategies
can be devolved that can engage a potential customer towards he product.
Collectively, it was identified that all the features have evolved in the international
marketing aspect. It can be critically evaluated that the marketing mix that has been developed
can help in ascertaining that the modification and adaptation of the marketing mix will help in
improved target in of the customers for the company and generate better revenue as well but the
negative aspects of the company indicates that the modification in the standard mix is that it will
require investment of time as well as cost aspect.
LO 4
Different international marketing approaches
For the House of Fraser, the international marketing approaches that the company can use
and involvement can be assessed in the company’s success and this can be ascertained in
following manner:
 Centralised marketing approach: Under this type of approach the strategies that will be
developed by the management of House of Frasers can be done by the traditional method.
All the strategies will be developed in the headquarters of the company and after their
approval, they will be executed and implemented accordingly in the entire organisation
and across the various platforms wherever it is wanted. This approach is good only when
the marketing department of the company is very well developed and talented as well.
 Decentralised marketing approach: Under this type of approach, the marketing activities
are undertake by a group of representative of the company who can act according to their
sole discretion i.e. in accordance with whichever strategy they find to be the best in that
particular scenario (Suroso, 2017). This kind of strategy becomes extremely risky when
the personnel is not adequately trained or is irresponsible.
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For House of Frasers, the best strategy would be to use the mix of both the centralised and
decentralised approach where the marketing department will develop certain standard activities
that are to be complied with. However, the representatives can change or modify these strategies
as and when the need for it arises.
Home and international orientation, ways to analyse competitors
Home orientation ways through which House of Frazer has established itself marketing
practices and develop effective position to combat with strong competitors and assess the
potential risks evaluate business planning aspects through which company can establish strong
position of itself within UK market economy. Home orientation enables to innovatively build
strong position of itself among industry with effective mechanism of strong marketing
techniques and relative use of high innovation through which higher competition can be
effectively combated. The company plans to expand integrate new technology ways to
fundamentally be active towards various customer extension ways, for attracting large segments
of customers to brand products and service. International orientation of House of Frazer is one of
the most important business development step onto which management highly focuses to gain
large expansion of market value, global marketing factors for higher goodwill and stronger
profitability with large business services. The inward and outward trade of goods and services
through international market horizons are part of international orientation where company is
strategically planning for larger working investments. International orientation has to be done
with proper analysis of competitors within retail industry where high competition is the main
focus due to which external forces may impact company sales and revenue (Watson and et.al
2018).
International orientation of business services can be done with analysis of how resources
will be planned for longer term business value, restructured market value and technical
programming of all practical pathways through which higher gaols can be developed to attain
larger business goals. Social platform orientation and public scanning in form of market
orientation to bring forward the various targets onto which House of Frazer can promote business
gaols effectively among large customer base. The social marketing segments are the new funnel
which retail companies are using to promote business values, gain preferences and structure the
data onto which company is planning to attract large customer base for gaining higher goodwill
and larger profitability. House of Frazer through this metric get full details onto which
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international market can be oriented for further expansion and building of potentialities through
which higher business gaols can be structured. Implications of this approach can be analysed
with the detailed paradigm onto which company can plan further expansion and diversification
for higher technical usage of technology, with cost effective usage of all resources it will enable
large scale of marketing. The factors will enable House of Frazer to compose large scale
development into international market orientation factors through which social media marketing
can also be enabled to get in touch with best factors of composition within markets share. It will
also gain access to competitors present within various scenarios and external factors onto which
lager focus needs to be done for higher access to larger expansion with stronger marketing tools.
Implication of this approach will also enable to deliver customer focused services where the
rational fundamental tools to captivate large market position will combat with higher
competition, higher goodwill factors built and also higher profitability (Mathews and et.al.
2016).
Porter’s five forces can be analysed in context of House of Fraser in following manner:
Existing Rivalry (High): The existing rivalry is extremely high as there are multiple operators in
the international market in the clothing industry such as H&M, Gucci etc. that can make the
competition very tough.
Bargaining power of suppliers (Low): The power of suppliers is comparatively low as the
company can easily shift to next best supplier if the rates are being implemented in a
monopolistic manner as there are abundant suppliers in the fashion industry.
Bargaining power of buyers (High): The bargaining power of buyers is high as the customers
have multiple options within the price range that they want where they can easily select another
fashion brand that is giving them similar products.
Threat of substitutes (Medium): The threat from the substitutes is at a medium level because the
potential substitutes of the designs that are being used by House of Fraser might be difficult to
substitute and hence this is at a medium level.
Threat of New Entrants (Low): This threat is significantly much lower as the company is not
mainly threatened by the new entrants in the industry. This is because the level and scale at
which House of Fraser operates is difficult to operate.
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CONCLUSION
On the basis of research conducted in the report above, it can be concluded that the
international marketing is widely different form the normal i.e. domestic marketing process. The
report which was prepared in context of House of Fraser identifies the scope of the international
market, the different entry strategist that can be adopted and the advantages and limitations for
every strategy were also discussed. The report also concluded that there are different contexts in
which the elements of the marketing mix work inn international market and lastly, the
international marketing approaches were also analysed and presented.
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