International Marketing Research Trends

This assignment presents a compilation of academic articles focusing on various aspects of international marketing research. The papers delve into topics like the influence of institutional forces on joint ventures, the psychic distance effect, determinants of export marketing research, the evolving role of networks in international marketing ventures, and the cultural impact on relationship marketing. The collection offers insights into contemporary trends and challenges faced by businesses engaging in international marketing.

International Marketing

Table of Content
Introduction......................................................................................................................................4
Main body........................................................................................................................................4
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Executive Summary
Multinational firms those which are operating worldwide have to market their products as per the
needs of consumers of particular nation. Present study identifies the challenges and opportunities
for the global firm when it enters into new market. Report discusses about the cultural sensitivity
and international factors that shape the competitive environment is evaluated. Retail industry has
great opportunity in Chinese market, consumers demand is very high and they have high interest
in the British products that can give success to Marks and Spencer.
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INTRODUCTION
Marketing is the essential requirement of present era, without having strong marketing
strategies firms cannot sustain in the complex environment for longer duration. It can be
explained as trading of goods and services in more than two countries. In the modern era,
corporations have to focus more on needs and demands of consumers (Garry and Hall, 2015).
For that they have to make changes in their products as per the desires of public. Present report is
based on the Marks and Spencer which is leading retail brand of UK. It has many subsidiaries
globally. Report will discuss the challenges and opportunities face by the cited firm when enters
into international market.
MAIN BODY
Multinational corporations are organization that offer their products to many countries
and they have offices across the world (Cavusgil and Knight, 2015).
Marks and Spencer is leading multinational retail firm that operates in the retail sector. It
generally engaged in selling of clothing, home and food products. It has more than 1380 stores
across the world and involved in E-commerce business as well. It is working as public limited
firm and having 8295 employees globally. It concentrates more on delivering quality services to
its customers so that they feel satisfied and be attached with the brand for longer duration
(Diamantopoulos and Siguaw, 2015).
China is the target international market for the M&S, as company is having vast business
across the world but it wants to establish its business in Chinese market as well. It is potential
market and can help in increasing sales volume of the cited firm. As Chinese population love
British products and they appreciate the quality of goods of British materials. So there is high
chances that to earn good profit (Czinkota and Ursic, 2015). This market can help the cited firm
in increasing brand awareness among people. As statics records show that China is the third
largest country known for shopping records. So there is high possibility of growth in this market
for the M&S. China is growing well and high income of China's Tier 2 cities can support cited
firm in gaining good profit. Tier 1 cities of China are the potential and mature market in term of
consumer behavior. Income level of population are good and better living standards turn
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customers mind towards buying high quality products. Thus, these people focus on quality cloths
so there M&S has high chances to grow well in this market.
As it is necessary for the organization to concentrate on the culturally sensitivity. All
countries have their own culture and their belief, test and preferences are far differed from others
(Baack, Harris and Baack, 2013). Employees feel troubled when they have to make connection
with other cultural people. In such condition their performance can get down as well. For that
companies like M&S needs to give training to its staff members so that they can gain knowledge
other country’s culture and can establish their business in new emerging market successfully.
Marks and Spencer do market research first before entering into new market, then it understands
culture of particular place and according adopts marketing strategies. So that it can sustain such
environment for longer duration (Samaha, Beck and Palmatier, 2014). Sometimes some people
do not like to buy specific product due to cultural restriction, and many times consumers feel
uneasy due to language issues. By developing knowledge about culture of other nation
companies like M&S can get success in international market. China is the traditional country,
people follow costumes strongly. So it is necessary that M&S design its cloths by looking upon
their culture, otherwise it may get failed in this market. Tradition of UK is differed from China
so to get profit in this market cited firm will have to design cloths accordingly otherwise due to
cultural sensitivity company will get failed and it will not be able to satisfied needs of
consumers.
Challenges and opportunities
There are many factors those shape the competitive environment and intensity of
competitive rivalry in the retail industry (Melewar and Dennis, 2013). PESTLE analyses is the
theory that can help in understanding the factors that can be barrier of entry for the M&S to enter
in the Chinese market:
Political factor: Government regulations, tax policies, trade agreement can get changed any time.
It impacts badly on the entire industry. Cited firm have to look upon this element and they have
to make broad changes in their operations to work in the new country. As M&S will have to
follow norms of Chinese government that can be challenge for the organization. Economic factor: It is another tool that creates challenge for the cited firm, as currency
fluctuation is very common in China. Inflation, recession can impact on the profit and
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sales of company. In such condition, it would be difficult for the cited firm to enter and
sustain in the new market successfully (Czinkota and Ursic, 2015). Social factor: That includes culture, belief, test, preferences etc. Firms have to gather
proper information about social factor and accordingly they have to offer products to
consumers. By this way company can attract more customers and can fulfill their needs. Technological factor: By entering into new market M&S can get knowledge about new
technologies and can enhance quality of its products. It will help in overtaking the local
business of China and that would help the cited firm in establish their business
significantly in China (Melewar and Dennis, 2013). Legal factor: It is the essential external marketing analyzing tool, tax rates, monitory,
fiscal policies impact on the business to great extent. Government of UK has different
monitory policies as compared to China government. So M&S needs to look upon this
factor and according it has to design its operations. Otherwise ignorance of regulation can
harm the reputation of the business to great extent (Diamantopoulos and Siguaw, 2015).
 Environment: As Marks and Spencer is selling the cloths to kids, men and women so it
needs to produce such products which are eco friendly. By this way consumers will take
interest and they will buy the products of the organization easily.
Marks & Spencer has to face many challenges when it enters into the international
market.
Cultural challenges:
As needs, wants, preferences of population of different countries are differed from each
other. As M&S is engaged in the clothing sector , as UK clients believe in modern dress up
whereas Chinese people like to wear traditional cloths. So cited firm will have to face the
challenge and it will have to modify its products as per the culture of such nation ( Garry and
Hall, 2015). Culture impact on the preferences of the users and influence their buying behavior
as well. So cited firm will have to look upon this before entering into the Chinese market.
Otherwise, it may harm the brand image of the organization to great extent. As UK clients
like to buy the products from supermarket whereas Chinese people like to buy a product from
stores., So it will have to provide them goods and services as per their cultural needs.
Political challenges:
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It is another challenge for the M&S when its enters into the Chinese market. As
government regulations, trade restrictions are different in every country. So company will have
to understand the working pattern of local business sand accordingly it will have to mold its
operations so that it can work there legally and ethically (Korey, 2013). Some time it create
issues for the organization because changes in currency can impact on pricing policy of the
products so overall revenues get affected.
Language:
It is another big challenge for the M&S because employees are belonged from the UK
nation and they do not have any knowledge about Chinese language. So it is difficult for the
company to make connection with the population of such market. It can create misunderstanding
and can impact on the business to great extent (Tsichla, Hatzithomas and Boutsouki, 2016).
Opportunities:
When M&S enters into the international market. Then it will give opportunity to the
cited firm. It will help in increasing the number of customers of the cited firm, as by entering into
new market, firm will be able to make connection with the new audience and it will help in
increasing revenues of the business to great extent.
Apart from the by entering into global Chinese market, cited firm will be able to expand
its business and that will give global presence to the M&S. It will be able to gain knowledge
about the latest technologies that will support the organization in improving quality of its
products (Korey, 2013). It will be able to satisfy its consumers by offering quality products and
services. That would help in enhancing sales volume of the company. By entering into Chinese
market M&S will get an opportunity of increasing number of suppliers so it may be option for
the cited firm that to buy raw material at lower cost. That will assist in increasing revenue of the
company and will reduce operational cost of the organization.
Population of China is very high so there will be opportunism for the cited firm that to
deal with mass audience. By this way it will be able to enhance its sales volume. China uses
advanced technologies, by entering into this market M&S will be bale to get to know about the
latest techniques and it will be able to improve its efficiency level. Thus, it will easily satisfy
needs of consumers and people will be loyal towards the brand. By entering into new market
cited firm will be able to make connection with new suppliers thus, it will not have to depend
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upon local suppliers thus, it would have option to purchase raw material at lower cost that would
be beneficial for the M&S.
Market entry strategies for M&S
International market is the vast market and firms have to ensure their potential before
entering into the new area (Ahmed and Tornroos, 2015). As M&S has to face may problems and
challenges that may create problem for the cited firm in the Chinese market. But effective
strategies can help the corporation in gaining huge success in the global market. Company
should focus on the making sound market entry strategy in which it needs to do proper planning
of delivering goods or cloths in the target area. There are several marketing entry strategies such
as licensing, franchising, exporting, joint venture, distributor etc. Among all of them distributor
and franchising are the best option for the M&S. Entity is well known brand and many more
Chinese customers but cloths through its website. By giving franchising in the China, cited firm
will be able to enter into this market easily. As local distributors and other big firms are well
aware with the needs and wants of Chinese population (Eberharda and Graig, 2013). Thus, they
can communicate well with them and can offer them products as per their requirements. So by
giving franchising in exchange of sharing in profit company can enter into new market
significantly and can establish its brand here.
Local distributor knows about policies and threats so they will be able to handle the business
effectively.
Management should focus on marketing mix as well. It needs to do conduct proper
market research just to identify needs of users and accordingly it should products to the
customers (Poulis, Poulis and Plakoyiannaki, 2013). That will attract more users and they will
feel satisfied. Price is the biggest factor that can influence the buyers easily. So it is necessary
that M&S keeps lower price of its cloths so that number of clients can get increased. It should set
prices as per the competitor brands. Promotion is one of the leading factor that can help in the
success of the organization. If M&S pay attention on the accurate promotional activities, then it
may attract more consumers. Chinese people like to use beneficial products, so in the
promotional adds, cited firm can describe quality of the cloths and can make them understand
benefits for them. It will gain their attention and they will buy the products of M&S. It can also
take support of social media networking such as Twitter, Facebook etc (Chang, Bai and Li,
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2015). By giving attractive advertisements on such social networking sites, company can make
them positive towards the brand and can attract them.
CONCLUSION
From the above report it can be concluded that marketing is the prime requirement of
today’s era for the organizations. In absence of good marketing strategies firms cannot survive in
the corporate world for longer period. Market penetration is the great strategy that would help in
attracting more people towards the organization. Giving franchises is the great market entry that
would help the M&S in expanding its business at minimum cost. M&S is the big brand but
before entering into the new market, cited firm have to look upon the potential of area, buying
behavior of the consumers, political condition, etc. By this way it will be able to promote its
brand in the right direct which can support in attracting mass audience. By this way it will be
able to meet the needs of Chinese users and that will help in establishing the subsidiary in the
international market.
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REFERENCES
Books and Journals
Ahmed, M. and Tornroos, J.A., 2015. Towards a processual approach to the study of marketing:
reflections on international project business. In Proceedings of the 1995 World Marketing
Congress (pp. 537-546). Springer International Publishing.
Baack, D.W., Harris, E.G. and Baack, D., 2013. International marketing. Sage.
Bressan, F. and Signori, P., 2014. Get off to a good start. International Relationship Marketing in
emerging markets. Procedia-Social and Behavioral Sciences, 150, pp.1230-1239.
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Chang, J., Bai, X. and Li, J.J., 2015. The influence of institutional forces on international joint
ventures' foreign parents' opportunism and relationship extendedness. Journal of
International Marketing. 23(2). pp.73-93.
Czinkota, M.R. and Ursic, M.L., 2015. A refutation of the psychic distance effect on export
development. In Proceedings of the 1987 Academy of Marketing Science (AMS) Annual
Conference (pp. 157-160). Springer International Publishing.
Diamantopoulos, A. and Siguaw, J.A., 2015. Determinants of export marketing research
evaluations: an exploratory study of firms in the UK. In Proceedings of the 1996 Academy
of Marketing Science (AMS) Annual Conference (pp. 155-159). Springer International
Publishing.
Eberharda, M. and Graig, J., 2013. The evolving role of organizational and personal networks
international marketing Ventures. Journal of World Business. 48. pp.385-397.
Garry, T. and Hall, C.M., 2015. In search of the good life: Reconstructing the meaning of
consumption rituals among international lifestyle migrants. International Marketing
Review. 32(2). pp.219-240.
Griffith, D.A. and Dimitrova, B.V., 2014. Business and cultural aspects of psychic distance and
complementarity of capabilities in export relationships. Journal of International
Marketing, 22(3), pp.50-67.
Korey, G., 2013. Multilateral perspectives in international marketing dynamics. Journal of
Business & Industrial Marketing.
Melewar, T.C. and Dennis, C., 2013. Special issue: 2nd International Colloquium on Place
Marketing and Nation Branding. The Marketing Review. 13(3). pp.229-232.
Poulis, K., Poulis, E. and Plakoyiannaki, E., 2013. The role of context in case study selection:
An international business perspective. International Business Review. 22(1). pp.304-314.
Samaha, S.A., Beck, J.T. and Palmatier, R.W., 2014. The role of culture in international
relationship marketing. Journal of Marketing. 78(5). pp.78-98.
Tsichla, E., Hatzithomas, L. and Boutsouki, C., 2016. Gender differences in the interpretation of
web atmospherics: A selectivity hypothesis approach. Journal of Marketing
Communications. 22(6). pp.563-586.
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