International Marketing: Scope, Concepts, and Entry Strategies

This document provides an overview of international marketing, including its scope and key concepts. It explores the rationale for organizations to market internationally and discusses different entry routes into international markets. The document also highlights key criteria for market selection and examines the advantages and disadvantages of various market entry strategies. The case study focuses on Unilever's international marketing approach.

International Marketing

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to the organization.............................................................................................1
Define international marketing and differentiate to local marketing.....................................1
Scope and key concepts of international marketing...............................................................2
Rationale for an organisation to want to market internationally............................................3
International marketing entry routes and which one the company should adopt...................4
Key criteria and selection process company should use when entering international market4
Market entry strategy advantages and disadvantages of each................................................5
Conclusions and recommendations on how and why the company should enter the
international market................................................................................................................7
Key arguments in the global vs local debate..........................................................................7
Product, pricing, promotional and distribution approach differ.............................................8
International marketing approaches.......................................................................................8
Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach................................................................................................9
Recommendations for the company.....................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing is the applications of the different principles of marketing in
order to satisfy the need and demand of the different people resides across the global boarders. It
is a marketing that is performed on a worldwide scale so as to reconcile or taking the advantage
by grabbing the different market opportunity that helps to keep the objectives of the business. It
is useful for the companies who want to expand their business at global level and it has been
done to improvise the profitability of the business at larger scale (Cateora, 2020). This report is
based on the Unilever that is the British multinational consumer company and provides the
diverse products and services as like food, energy drink, ice cream, tea, cleaning agents, beauty
products, and personal care products and it is the largest producer of soap at global level. This
report includes the understanding of marketing contributes to business strategy and entry
selection in international context.
MAIN BODY
Introduction to the organization
Unilever is larger leading national organisation and one of the oldest multinational
companies and have served their products and services in 190 countries. Unilever has worked
with the 400 brands and it is the dual listed company as Unilever N.V that is based on
Rotterdam, and Unilever plc, based in London (Cavusgil, 2018). They have organised the
business in major division as like Home Care, Foods, Refreshment (beverages and ice cream),
and Beauty & Personal Care and having the research and development centres at India, UK, US,
Netherlands and China.
Define international marketing and differentiate to local marketing
International marketing is the procedure through which the products and services of the
business will get provided in the global market so as to make the effective promotion and using
the suitable pricing and distribution strategy thus right services get served at right time. It will
help to take the better revenue under which the attention of the customer will also get developed.
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Basis Domestic Marketing International Marketing
Meaning It is related to the marketing that get
performed for the local people and
covers the national boundaries
(Christofi, 2018).
In this the products and services get
served in the international market and the
international boarder will get covered.
Area served The local areas are beleaguered. The international customer of different
country will get targeted.
Government
interference
It is low. Relatively high.
Business
operation
In particular country i.e. home nation. More than one nation.
Use of
technology
It is used to arrive at domestic markets It will used to get in reach to more
customers.
Capital
requirement
Less Huge
Scope and key concepts of international marketing.
International marketing provides the superior opportunity to the business by which the
captured range will get enhanced and brings a large scope that is as defined below as:
 Imports: It is useful to meet the requirement of customer by resold the international
product in domestic market (Gao, 2018).
 Exports: It is used to increase the profit and sales of the business by selling the product in
newer market at different nation.
 Management of international operations: In this the products and services get assemble
in different country and sell out in different country to develop better economy.
 Joint venturing: It is the collaboration in between the different companies that get makes
to expand the business at national level.
The international marketing support the business to expand their product and services at
global level thus the larger market will get captured which is more important to manage the
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foreign trade by following the adequate guidance at national level and it helps to manage the
business with ethical and legal basis (Hollensen, 2019).
Rationale for an organisation to want to market internationally
Unilever have rationale and with this target the international market by accepting the
different benefits by which the sales and profit will get developed that will improvise the
working standard of the business in systematic manner and some of the major reasons due to
which Unilever expand the business in German are as follows:
 Increase sales: Unilever uses the marketing platform to grab the attention of the
customers with that served the different products of beauty and care that helps to make
better expansion.
 Improve profits: Unilever export the products and services in German and from their
emphasis its sales and attain better profits (Hult, 2018).
 Increased innovation: In this Unilever has induced rapid changes in the business and
induce the better food and beverages by which more healthy products get served to
customers.
 Economies of scale: Unilever get the cheap labour in German as compared to UK by
which their production cost will get reduced by which more effective profit will get
gained.
 Emerging markets: As German has provide the better opportunity in corporate world so
that Unilever get the flexible surround to establish their market.
There are some risks as well that get faced by the Unilever in international market and as
defined below as:
 Global economy: It is the vital factor that affect the performance of business by which
trading get performed and the tax amount will also get levied by which profit will get
affected (Ju, 2018).
 More competition: In the international market more competition will get faced as a lot of
companies get worked in the same services.
 Tariff barriers: It is related to the barrier as from which the marketing cost will affect the
cost of the business.
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International marketing entry routes and which one the company should adopt
The business must get follow the different route to get enter in the international market
under which the successful implementation will get induces and that is as defined below as: Exporting: It is a process through which the products and services will get served in the
different country and get transferred by the shipping by which the potential customer will
get attracted by which more profit will get gained (Morgan, 2018). Licensing: It is a procedure through which the agreement will get performed in between
the two businesses by which one company will provide the license to other by which the
foreign trading will become easier and helps to deliver the best services.
 Franchising: It is the process through which the business will expand their products and
services by giving right to other parties that are called as franchisee with that brand right
and its name provided to them.
 Joint venturing: It is the process through which the company will perform the
partnership in between the foreign company by which the effectual deal will get
performed by which better profit will get gained (Nyuur, 2018).
Unilever can use Joint venture that helps to get expand the business with more perfection in
German and with this they have induce different strategy by which the customer reach will get
more improvised by which the cheaper expansion get performed that help to make more profit.
Key criteria and selection process company should use when entering international market
The selection process of the Unilever by which they could choose the different country by
which easily expands the business and with that follows the certain criteria that are as defined
below as:
 Environment and market analysis: It is vital for the business so as to analyse the
different factors by which the negative impact will get reduced so that they have perform
the PESTLE analysis by which the macro environment aspect will get analysed in easiest
manner (Radulovich, 2018).
 Analysis of competition: It is also be needed that before making the expansion the
company will get make analysed the different strategy by which they could easily attain
the customer attention by which the better positioning will get attained in effectual
manner.
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 Distribution channels: It is channel through which the company will manage the supply
of different good and services to the suppliers by which they could more easily get attract
the customer by which the efficient supply chain will get maintained to enhance the
customer satisfaction.
 Demand analysis: In this the company will analyse the different demand of the customer
about the relative product and services and according to that make the innovation by
which larger number of customer will get attracted (Sapouna, 2018).
The market selection process comprise following steps:
 International marketing objectives: In this the international expansion objectives of the
business will get resolute.
 Parameters of selection: Property available, worldwide selling atmosphere, advertise
situation, scale of competition, supporting situation etc. must be evaluate.
 Preliminary screening: In this the screening of different factors will get affect will get
analysed by the business.
 Short listing of markets: As after the markets screening the bazaar with most
encouraging situation for business are diminutive scheduled
 Evaluation and selection: The short listed markets are considered that are based on cost
advantage examination and viability revise and the most constructive souk is particular.
 Test marketing: The diminutive areas in the certain market are tested with business
products by which the customer need and demand will get analysed and measured.
 Commercial production: As after realization a positive retort commercial production of
goods is taking place by the business.
Market entry strategy advantages and disadvantages of each
There are a variety of strategies under which Unilever can go into the German market by
which they have expanded the business at international level in systematic manner (Morrison,
2018).
Licensing
Advantages:
 Enormous opening to generate reflexive revenue.
 Effortless access in worldwide market.
 Risks implicated are of a smaller amount.
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Disadvantages
 The maltreatment of scholar goods of business can arise.
 Dependence of licensee on licensor. A lot of competition in existing marketplace.
Exporting
Advantages Opening to discover new marketplace and its demands. Economies of scale can be increase. Enhanced competitive advantage can be expanding in familial market.
Disadvantages
 The costs of exporting can be more in former country.
 Inadequate knowledge of international market.
Franchising
Advantages Charge efficient development of industry Novel markets can imprison and market can be prolonged
Disadvantages
 Vast capital speculation is concerned (Armstrong, 2018)
 The logicalities and rules and regulations can augment the cost of company
Joint venture
Advantages It is an simple method to capture marketplace by live market Both parties will share the risk and cost.
Disadvantages There can be conflict in the connecting and implicated parties. It can be tricky to administer the industry and labour force of together company
Conclusions and recommendations on how and why the company should enter the international
market.
As from the above discussion it could be analysed that Unilever must have expand the
business in a lot of places but get expand more in German and by which get paired up with the
joint venture that is easy for them to get make the better connection in between the existing
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market of German (Bertoli, 2018). It is even more helpful to make the better ideas by which
more creative and better output will get attained by which the effectual approach will get used by
which the cost efficiency and effectiveness will get measured. It is also be more helpful to
manage the different resources by which more profit will get attain in systematic manner and
there are some recommendation that are as defined below as:
 The maximum profit will get shared by both the companies by which the profit margin
will also get more developed.
 The businesses must have use the different strategy and leadership approach by which the
working culture and behaviour of the company will get improvised.
 It is also be more vital that the company will give the preference to the customer and
fulfil their demand and requirement in effectual manner.
Key arguments in the global vs local debate
The international businesses will always get bring more innovation and the creativity in
the different products and services that get served by the company in order to provide the better
care to their customers and that all it to fulfil the need and the demand of the market. The global
market will encourage the productivity of the business and it support the company to make more
values of their product and enlarges the brand value of the business as well (Agarwal, 2018). It is
also be more vital for the business while working at larger scale the better and the advanced
technology will get used by which the wider acceptance will get gained by the business at the
newer market. The company must have manage their working operation as per the change in the
emerging trends and accordingly implies the changes by which suitable outcome will get
conceived.
The local marketing defines the state in which the company will served the different
products and services to the minimum numbers of the customers. Thus the growth and the
development of the business will also be restricted and limited and in that they have gain the
adequate amount of profit. The local marketing will get based on some particular area and with
that they can’t expand their business at international level due to the limited availability of the
resources. Thus in this the demand of the local customer will get fulfilled and with that the
certain amount of growth gets measured with the increment of the sales and profit.
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Product, pricing, promotional and distribution approach differ
These are the different strategy of marketing that get used and implies by the business
while working in an international market. In support of these strategies the company will
differentiate their product and service from the already present services and thus try to influence
the buying behaviour of the customers. It will be totally dependent on the pricing, promotional
activities and the distribution channel that get used by the business so as to attract the larger
number of customer in systematic manner (De Mooij, 2018). The demand and the requirement of
the market will changes the pricing policies of the business and with that they have make the
suitable fluctuation in prices so as to satisfy the customer by which better profit will get gained.
In addition to this the promotional strategy of the business is based on the market that will get
targeted by them by which they could try to influence and encourage the customer with more
sufficiency. Thus the appropriate strategy will get used by the business to get reach to right
customer at absolute time that has make the positive impact on the profitability of the business.
The distribution channel will manage the supply chain with that the company will circulate their
product in the market to gain better sales. These all strategy get used by the business to get
effective sales and long terms sustainability with their products and services.
International marketing approaches
The international marketing approach will get used by the business while expanding their
business at new level or at global level as it helps to make the better stability by which the
company will accomplish their goals and objectives within the timely basis. Thus more profit
will get gained from the competitive market as these approaches will guide the business as what
to do and how to manage the working operation as from where better profit will get attained by
controlling the productivity as well (Falahat, 2018). These approaches are more supportive as by
this the company will control the pricing, distribution channel, promotion of their offered
products. The effective outcome will get attained by which the usage of these approaches and
some of that are followed by the Unilever while expanding the business in German and as
defined below as:
 Centralised approach to international marketing: It is an approach through which the
business has the power to get manages their operation by taking the decision by its own.
In this the higher level management plays the vital role as they develop the different
strategy for the business to measure the adequate growth. Thus they would perform the
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decision making by making the collaboration with the marketing nuances and thus
developed the different policy and strategy that get followed by the business (Jin, 2018).
It is a approach through which the focus will get maintained towards the enhancement of
the working capability and the manager get ensure that all the task performed in the
assigned time by which uniformity will get established
 Decentralised approach to international marketing: It is an approach in which all the
different branches of the company will have developed their own strategy and policy as
per the changes marketing trend of their own nation and that is to fulfil the demand of the
customer with more perfection. In this the effective decision will get improvised by
which the staff will always be remaining more motivated and keep working on the
innovative ideas to capture the largest market share.
Unilever must have uses the centralised international marketing approach by which they
could the better similarity in between the different branches and maintain the standardised
strategy that helps to produce better sales. It is even more useful while making the effective
decision making and with that the better control will get maintained about all the different
activities that get performed in the business to satisfied the requirement of the market.
Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach.
The companies must get performed their business operation with the usage of several
orientation and according to that maintain and measure the effectiveness and adequate suitability
in the global market by satisfying the need and demand of their customers (Misirlis, 2018). The
international orientation includes the different program that gets performed by the business while
offering their product and service at international level. In this the company have take some
decision strategically by which the suitable relationship will get maintained in between all the
subsidy of the business.
 Ethnocentric orientation: It is an orientation in which the different policy and strategy
get developed by the business for their home country and these build strategy will get
followed by all the different branches of the company. The other branches of the
company didn’t have the permission and authority to change the strategy. All the working
rules regulation get developed from the higher authority or the main branch and that get
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circulated through all the different branches and by following these strategy the demand
and need of the customer will get fulfilled(Wind, 2019).
 Regiocentric orientation: It is an orientation in which the business must find the common
nuances under which the need and requirement of the customer will get satisfied and that
will be based on the cultural, political and the economical factors.
 Geocentric orientation: It is approaches through which the business must get encourage
the international marketing as under this all the place of the globe will measured as an
individual market. In this orientation the company get followed the different strategy that
get standardised to satisfy the demand of the customers. The marketers of company must
get analysed the complete market and thus to measure the requirement of customer.
 Polycentric orientation: It is orientations in which the company must get follow the
different approach to fulfil the requirement of the business and that is completely based
on the different preferences of the customers. It is more useful as with this the different
branches of company take the decision per own marketing change.
Basis Home orientation International orientation
Market
perception
In this the business gets focused to
find the similarity in between the
local and global market so as to
expand the selling internationally.
The overall world is considerate as
the single market.
Market strategy The strategy that gets used in
domestic market will get extended
to the global market.
The standardised strategy gets used at
global level.
Advantages While applying the lesser effort as
well more profit will get gained.
The better profit with the large
economy of scale will get developed.
Disadvantages The future scope of the business is
much limited.
The standardised working process
will get affect the market situation
and sales.
Recommendations for the company
Unilever uses the ethnocentric orientations approach by which the standardised decision
will get developed from the head office of the business as with that the effectual control on the
different policy and strategy that could be applied in the German will get considerate with better
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affordability. It is also be more supportive to get manage the different operation and function that
get performed within the national and the international branches of the company with more
successful manner.
CONCLUSION
From this report it can be concluded that international marketing provides the better
platform to the customers by which the their need will get satisfies by gaining the different
product and services at appropriate costing and on the other hand the business also attain the
profit so as to make the better sales. The businesses must have uses the international marketing
to attain more benefits and with that the better profit will also get achieved. It is more important
while expanding the business that the different associated risk and the opportunity will get
measured and then appropriate strategy will get induced son that the effective economy will get
maintained.
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REFERENCES
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