Understanding International Marketing Strategies for Business Expansion

This report discusses the scope and key concepts of international marketing, rationale for business to market internationally, selection process to use when focusing on international market to enter, different market entry strategies with advantages and disadvantages, and implementation of market evaluation criteria and recommendations. The report also includes a case study of Marks and Spencer, a British multinational retail brand, and their international marketing strategies.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION....................................................................................................................3
TASK 1......................................................................................................................................3
P1 Scope and key concepts of international marketing.........................................................3
P2 Rationale for business to market internationally and various routes which can be
adopted...................................................................................................................................4
M1 Opportunities and challenges due to international marketing.........................................5
D1 Critical evaluation of international market including how business adapt their
marketing strategies for various markets...............................................................................6
TASK 2......................................................................................................................................6
P3 Selection process to use when focusing on international market to enter........................6
P4 Explain different market entry strategies with including the advantages and
disadvantages.........................................................................................................................7
M2 Implementation of market evaluation criteria and recommendations.............................8
TASK 3&4.................................................................................................................................8
Covered in PPT......................................................................................................................8
CONCLUSION.........................................................................................................................8
REFERENCES.........................................................................................................................9

INTRODUCTION
International marketing is the implementation of marketing principles by industries in
one or more than one country. According to American Marketing Association (AMA),
international marketing is the multinational process of planning and executing the pricing,
promotion, conception and distribution of ideas, products and services to create exchange
which can be helpful in satisfying or meeting individual or organization objectives (1). Marks
and Spencer is a British multinational retail brand which was founded by Michael Marks and
Thomas Spencer in Leeds in 1884. The company is operating at worldwide level and offers
home products, food products and wide of apparels. The company has also collaborated with
food delivery service company- Ocado through joint venture. The report will also outline
opportunities and challenges to international marketing and how marketing strategies adopted
by business are followed in various global markets. In the next section, the project will
address the selection process which must be considered in international market. Lastly, the
study will highlight market evaluation criteria with few suggestions which can maximise
business performance in global market.
TASK 1
P1 Scope and key concepts of international marketing
Concepts of international marketing
International marketing is the implementation of marketing principles bye industry in
one or more than one country. International marketing is the process of planning and
executing the rates, promotion turn distribution of products and services in the global market.
International marketing is the exchange of commodities across national borders in order to
meet the requirements of customers. International marketing concepts relies on three
components, which are- orientation to foreign trade, sales in foreign market and orientation of
international marketing.
International marketing brings various advantages to an organization and whole
economy. International marketing can be a catalyst of enhancing the living standards of
people and acts as the medium of fast industrial development. It is also responsible to
decrease the price of products and services worldwide which will be helpful in gaining cost
advantage and also supports in making optimum utilization of resources. Through engaging
in international marketing this offers availability of foreign exchange.

Scope of international marketing
The major participants of international marketing are multinational corporations,
exporters, importers and service companies.
 Multinational corporations (MNC)- a multinational organization is a company
which ensures the production of goods and services in one or more countries than
their host country. Such companies operate with setups in different countries and it
have centralized headquarter in the host country.
 Exporters- Exporters are sellers who sell their product overseas and provide service
across their home country by following all legal terms and conditions.
 Importers- importers are overseas buyers who buy products and services from
exporters by complying with all legal rules and regulations.
 Service companies- service company earns revenues by trading on services and not
on commodities.
The scope of international marketing is to export goods and services across national
borders. As, marketing have wide variety of scope, this will cover all activities of conception
and ideas to realizing the profits of organisations. The international marketing strategies are
helpful in increasing business growth, developing career chances and plays a crucial role in
increasing growth of an organization by attracting maximum customers for the business.
P2 Rationale for business to market internationally and various routes which can be adopted
International marketing is essential for business for entering into global market.
Competitiveness can be considered as a reason for business expansion into international
market There are several reasons of an organization to market their business internationally.
Some of these reasons all listed below:
 Incline in revenue potential
 Entry to new markets
 New customer base
 Expansion is the medium of diversity
 Helps in gaining competitive advantage
 Enhances and strengthens reputation of business

In context of Marks and Spencer, the selected brand is famous international business
company which have variety of product range and have range of competitors around the
global market. Marks and Spencer have gained technological power which is the base of
international market expansion. With the help of technological advancement, M&S has
gained various benefits through advancement in technology which will increase the profits of
the organization while operating in the global market place.
Routes of internationalization
There are different routes to internalization which can be the medium to business
expansion. Some of the routes to global markets has been discussed below:
 Direct selling- It is the most common approach of selling directly and exporting
goods and services into the chosen global market. Through developing effective sales
programs, this will be helpful for the organization to target customers and expand
business in global markets. In context of M&S, the company directly sells their
products through their website and through their physical stores.
 Distributors- This is another route of internalization, where distributors transport the
goods and services of an organization to national and international markets. In context
of Marks and Spencer, the distributors of the company distribute the goods and
services through which they meet customer demands at national and global level.
M1 Opportunities and challenges due to international marketing
International marketing is helpful in creating bigger and better opportunities for
business expansion. The opportunities and challenges due to international marketing in
context of M&S is discussed below:
Opportunities
With the help of business expansion to international market, this can be helpful in
improving the living standards of the people, organization and of whole economy. This helps
in making optimum utilization of resources and supports in rapid industrial growth. In context
of M&S, business expansion facilitates cultural exchange and this enhances the cultural
diversity of the organization. Through international marketing, this offers opportunity to
business and M&S to expand their customer base which will create positive impact on the
revenues and profitability of the organization.

Challenges
Expanding the business into international markets, this makes business face various
challenges and barriers. Some of the challenges can create adverse impact in the
sustainability of an organization in the global marketplace. In context of M&S, the company
faced various challenges while international marketing and government barriers were some of
the challenges which hindered the continuity of operations of business within the
international industry. Some of the other challenges in the international marketing faced by
M&S is increases in competition due to global marketplace.
D1 Critical evaluation of international market including how business adapt their marketing
strategies for various markets
For developing the international market strategy, an organization must focus on the
strategies related to- price, place, product, promotion, packaging, physical evidence and
positioning of product strategies in the target market. The marketing strategies can bring
advantage to the organization and will create a positive impact on business. However, with
the help of effective marketing strategies, this can help business in operating at global level,
regulate the policies, adopt innovation and meet customer demands in timely manner which
can support in strengthening the brand image of organization within global marketplace. Due
to poor international marketing strategies, this can hamper the operational process of
organization which will affect the revenues and brand image of company within the industry.
Such poor international marketing strategies are responsible for not meeting the consumer
demand which can make business loose their customer base.
TASK 2
P3 Selection process to use when focusing on international market to enter
The selection process includes an examination Marks and Spencer marketing strategy for
entering global marketplace. In case of Marks and Spencer, the selection process in
international amrelt has bene discussed below:
 Country identification: It explains how a company can figure out which nations are
ideal for doing international business in. The e-commerce market in India was worth
$3.9 billion in 2009, making it a suitable location for Marks and Spencer to

commence its worldwide operations. Country identification- It explains how a
company can figure out which nations are ideal for doing international business in
(Marks and Spencer). The e-commerce market in global market was worth $3.9
billion in 2009, making it a suitable location for Marks and Spencerto commence its
worldwide operations.
 Preliminary/ In-depth screening: Preliminary screening begins with a weighing,
rating, and ranking of nations based on macroeconomic variables such currency rates,
current stability, and domestic consumption levels. These policies explain how the
company should manage its products and delivery services. This requires acquiring
extensive knowledge on the target market, depending on both local and
microeconomic factors. In India, 65 percent of those under the age of 35 and 70
percent of those in rural areas have used the internet to access Marks and
Spencer services.
P4 Explain different market entry strategies with including the advantages and disadvantages
There are different market entry strategies which can be followed by an organization
for international marketing in global market. Market entry strategies involves ownership,
reentry, exit, exporting, foreign production and entry analysis strategy. In context of, some of
the market entry strategy followed by girl organization is discussed below whether their
advantages and disadvantages:
Strategic alliance- In context of Marks and Spencer, through strategic alliance the brand
focuses on providing innovation strategy, developing sustainable products, offer fast and
reliable shipment facilities and ensure effective warehousing facilities to manage the
inventory and meet customer demands in time.
 Advantages: This approach is helpful for the selected business in attracting greater
number of customers and has been a source of additional income for the organization.
 Disadvantages: This approach of market entry strategy followed by Marks and
Spencer involves weaker management and less equity stake. Due to their strategy, this
created an adverse impact on communication and further leads to poor utilization of
available resources.
Exporting- Exporting the goods and services form parent country to host country, the
medium of exporting is widely famous. In terms of Marks and Spencer, exporting is the

process of sending products to an international marketing and is mostly used strategy for
international business expansion.
 Advantages: This approach can be helpful in gaining information related to foreign
competitors and will also help in reducing the level of risk.
 Disadvantages: Exporting required organization to develop a customer base and the
trade barriers which can be faced by an organization are hard to resolve.
M2 Implementation of market evaluation criteria and recommendations
A marketer must go through a variety of actions and tactics in order to enter an
international market. In order to develop into new sectors of worldwide trade, Marks &
Spencer, as an international marketing organisation must use scientific approaches.
Exporting, franchising, licencing, joint venture, and other forms of worldwide marketing
have a variety of requirements. Marks and Spencer use franchising to export their marketing
items to other countries.
Recommendations
In addition, Marks and Spencer must focus on developing a variety of new global
marketing strategies, such as licencing, franchises, joint ventures, foreign direct
investment and others. These efforts will provide the company an edge and knowledge on
how to grow their brand by creating a global marketing plan.
TASK 3&4
Covered in PPT
CONCLUSION
From the above project, it can be concluded that international marketing is trading of
goods and services among different countries. Global marketing can also be defined as
marketing on a worldwide scale. It can be concluded that marketing strategies plays a crucial
role in enhancing the business and finding new innovative approaches to promote the
products and services. The marketing strategies plays a crucial role as by such international
marketing strategy, this can be helpful in promoting the product and services and expanding
the customer base. It can be stated that international business and marketing is responsible for

promoting the goods and services through which greater number of audiences can be
celebrated.

REFERENCES
Books and journals
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