International Marketing Opportunity Analysis

This assignment focuses on evaluating international marketing opportunities by emphasizing the crucial role of context. Students are expected to delve into relevant theories and concepts, examining how factors such as cultural differences, economic conditions, and political landscapes influence a company's success in foreign markets. The analysis should draw upon the provided academic sources to support its arguments and provide a comprehensive understanding of the complexities involved in assessing international marketing potential.

International Marketing

TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Globalization is regarded as a process wherein domestic companies establish their
business in overseas market for expanding business internationally. It helps entrepreneurs to
maximize their turnover, market share and competitive position in the global marketplace. With
the liberalization, there are various factors which encourage businesses to expand their
operations in various countries i.e. increased connectedness due to information and
communication technology development, high level of competition, social and political reforms
and others. Marketing plays an inevitable role in the successful expansion and international
marketing is a process of exchanging goods and services across the globe in order to satisfy the
varied needs and wants of people. The present case study is based on international marketing
strategy, Marks and Spencer case study is taken in to consideration. It is one of the top leading
supermarket in UK it has offered wide range of services to the customers at affordable prices.
This case study mainly concerned with the effective development of international marketing
strategy in terms of marketing mix and market entry strategies. In this, various theories i.e.
product mix decision, product life cycle, communication theory and others will be examined for
the successful global operations of M&S.
TASK 1
International communication theory
Communication is extremely important for the global marketers to expand and establish
their business in other external market. According to P. Kotler, international communication is
regarded as a process of exchanging information about products and services at global level. In
other words, communication across cross-country boundaries is referred as global
communication. Being a multinational enterprise, M&S can use various modes of global
communication i.e. mass-media, telecommunication, cross-cultural communication, online
advertisement and others to interact globally. In the modernized period, M&S must put focus
upon advanced & latest technologies to promote their business in different nations of the world
such as internet marketing, mass-media and others. In the current times, with the emergence of
web2.0 technology, many companies are focusing on SMM wherein they advertise their products
through social sites. Referring UK, there are huge proportion of population are internet users,
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therefore, it is considered really as an effective communication channel for M&S to promote
their sales through SMM. It helps to interact with the people all over the world and deliver them
necessary information about M&S’s product portfolio. Attract & innovative advertisement
assists business to generate larger audiences and motivate them to purchase the offerings to
satisfy their needs, which in turn, company will be able to maximize their turnover and
profitability and run business successfully.
Opportunities and challenges
International Marketing Mix
International marketing strategy can be defined as marketing of goods and services
outside the firm's home country. It indicates the integration and coordination of marketing
activities across varied markets. Marketing strategy always be identical and build their brand and
services according to the business environment of the foreign market.
Product: Standardization of product helps in to achieve economies of scale along with
establishment of consistent image across the market. Standardization of a product helps to satisfy
consumers and helps to achieve success overseas.
Price: Price is the value that M&S charges from the product users in return for the
product and service supplied. It must be decided in accordance with the consumer’s willingness
and capability to pay. Affordable price policy is founded superior so that customer will be desire
to consume the offered goods as it is available at reasonable prices. Mark and Spencer retail
supermarket product prices are economical and customer approachable.
Place: Companies uses various modes of distribution channel for delivering the product
and services. Every company has their own way of distribution. Marks and Spencer uses straight
distribution channel towards the end user which are economical and fast. It provide various range
of product it targets every age group of customers. Place of the distribution of product and
services which can be its branches and home delivery services (Bertoli, 2013). All these mode of
channel are economically convenient and suitable for all of the customers.
Promotion: Advertising of a product at the International level is the most critical task
because it depends on the country culture, intense competition and other factors affects the
company operations and profitability. Under the marketing strategy same brand of product and
services are promote all over the world. Some of multinational companies are come up with
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theme based advertising approach which helps in extensive global customer research. Global
theme of advertisement are to be used when target customers have same taste and preference
across the world. The purpose of international marketing i.e. online advertisement helps to reach
and communicate to mass audience in more than one country. Target audience emotional
sentiments, perception and interpretation level of symbol and stimuli is differ from country to
country (Gilligan,and Hird, 2012). Identical advertising tools to be used due to the multiple
cultures that vary in terms of communication style, values and consumption pattern and helps in
expanding the revenue and create sustainable image across the global market. In context to
M&S, where wide range of product and services are to be offered so that it uses internet
marketing where customers have ease access to the information about the various product line
along with their prices. It is a convenient process towards the customer approach where all the
products and services are executed on the same platform.
Product life cycle
Life of product depends on the stages, from when it is launched in international
marketing. M&S every time before launching new product try to maximize its growth stage of
product life cycle which is as follows:
Introduction Stage: In this stage, new commodity is launched in international market by
the company. Buyers who appreciate products and knows about it will buy it at higher prices if
the company offered good quality product.
Growth Stage: Survey of international market is carried out to evaluate the demand of
commodity. And in this stage demand for commodity increases rapidly and the company earns
maximum profit.
Maturity Stage: In this stage, demand for commodity increases but slowly so the M&S
offer products at discounted price in order to increase sales.
Saturation Stage: At this stage, Demand for commodity reach its maximum and the
product has no further potential to increase. After this the company need to decide and plan for
new commodity
Decline Stage: Last stage for commodity, in this the product sales comes to an end and it
gets discontinued from international market.
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Product Adaptation
In this the company modifies the existing product in order to attract more and more
buyers of internal national market. For this process M&S research market factors like:
Size: Size at which buyers are comfortable buying particular commodity. This also
includes quantity of the product.
Packaging: This is the key point for every retailers because packaging of product attracts
consumers and also lay a good impact in international market.
Market entry strategy
A market entry strategy is a planned method of delivering of goods and services to the
target market. There are variety of ways companies can enter in a foreign market. Direct
exporting is one of the most appropriate strategy in entering one market where agents and
distributors helps in to represent their product in that market. Licensing is the another way where
firm transfer their rights to another firm. It basically useful when purchaser of a license exist in
the large market share in which company wants to enter. It can use for marketing as well as
production. Franchising is a tool for rapid market expansion where firm’s products easily
transferred in to other market. Franchising of a product and services are to be identical and
unique along with strong brand, In another way it create strong competition among their
franchisee. Partnering is necessary when company wants to enter in foreign markets where
culture and their social factors are different so that partnering helps in to promote their own
product and services in front of other country customers. Joint ventures are a particular form of
partnership that involves the third independent managed company where two companies are
agree to work together in a particular either product or geographic and create a third company to
undertake this. In this type of ventures profit and risk are normally shared equally or on the basis
of their contribution. Acquiring and buying of an existing company are to be the best strategy for
entering in other market. Through this company can capture substantial market share and receive
direct competition from the existing firm in the new market. Greenfield investment is one of the
most appropriate modes for entering in the new market. It's a self dependent mode where
company buys the land, build the facility and operate the business on an ongoing basis in a
foreign market. Opportunities and threats are basically correlated factors which are examined
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with reference to marketing mix elements and market entering strategy. Opportunities can be
capture when joint venture of market entering strategy to be adopt because it covers wider
market region and have opportunity to serve their services to mass customers. Company also
gains competitive advantage in the new market in order to larger revenue. Under this risk and
profits are shared equally. Advertisement of product and service marketing strategy is the
another key factor for profit generation and mass target and suitable technique for representing
their product and services across the world. Internet advertising provides wider platform to
access the information regarding to product and its price along with they can analyze their
substitute and competitive product which are offered by their competitors.
TASK 2
Evaluation the major drivers of globalization
Globalization provides the same entry level to all countries and no barriers for trade.
Primary drivers of globalization are the rapid advancements in technology, culture and political
environment. Advancements in transportation technology enables intercontinental trade, and it
leads the exchange of goods, ideas and cultural factors which influence the large portion of the
planet (Berthon, Pitt, Plangger, and Shapiro, 2012). Telecommunication technology allows for
the instantaneous exchange of information around the world through the use of telephone, emails
and video conferencing. Multinational companies use freight trains, ships and planes for the
transfer of products and services. Social and political factors affects the globalization process by
the enormous growth in population and facilitate cooperative development of commercial
opportunities. Major proportion of the world population is fluent in English so that many of these
countries could communicate with the West effectively as well as they can effectively
understand the technical and financial aspects of the West form of capitalism. Globalization
factors makes greater impact when company wants to enter in an emerging market. Like
McDonald's it gives franchisee to different dealers for expanding their business and product line
across the globe. Drivers of globalization are advancement in technology which helps in to
ordering the food and services online along with home delivery services.
Transportation structure
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The companies has designed distribution network in order minimize time span and to
give security to its buyers shopping on web. Multinational companies also focus on low fuel
emitting vehicles. This depends on production storage and direct shipping, distribution channels,
distributor storage and carrier delivery, distributor storage and last mile delivery. Like M&S is
selling its services globally it takes minimum time to reach its buyers and also keep updating
them about shipping of products, consumers can even track orders to know the location and time
to arrival of products.Trading online and technological up gradation became key drivers for
globalization which leads to encourage international trading in the corporate market.
Telecommunication technology creates the world nearer and in accessible manner.
Country culture and their norms forces the company to change its product line and their serving
methods, various countries has different cultural and social norms which affects the company
operations and their productivity. Basically McDonald's provides non vegetarian food products
which are acceptable in some country but some of country refuses this due to their culture and
against their norms so that company exchange and modification in the company existing product
line according to their customer taste and preferences of a particular country. Marks and Spencer
globalization success is depended and linked with the numerous key drivers of the overall
process. The first beneficial factor is technological innovation which helps in to rapidly globalize
their supermarket, due to this company has been able to manage, reproduce and standardize their
product across the world. Technology such as video conferencing and emailing with suppliers
and visually check their product quality. Through this company can easily communicate with
their employees worldwide and evaluate the need of training in order to coordinate all the
globally oriented activities.
Another major driver of globalization is the efficient development of transportation
system, which allow to quick and affordable migration of their product across the globe.
Company utilize freight trains, ship and planes for transferring their product's to their different
supermarkets. Every organization can establish their business globally with minimal efforts.
Company product line and services to offered according to the country culture and believes so
that different product line is to be used in different country in order to meet its customer’s varied
demand and wants. Modification in product line is sophisticated and regular according to the
customer demand. All the globalization drivers provides supportive background in establishing
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and expanding the business across the world. Social factors are different in different country so
that product line to be designed according to the country norms and welfare of society.
Advancement in technology and communication channel spread the network across the world so
that all the operations and activities are to be coordinated and manage at a single level. After the
globalization business organization expand their business through the use of FDI and Green field
investment it provides various opportunities to build and expand their business effectively.
Expansion and establishment of business are depend on the level of competition and five forces
porter model which are differ from country to country so that marketing strategy are differ
according to the country environment and changes with the changes in the environmental factors.
Globalization factors are flexible in nature because it varies according to time and changes in
certain circumstances. Trade at International level also influence by the fluctuation in the
exchange rate of country currency, interest rate and other factors which affects the business
operations (Yang, Su, and Fam, 20120. Use of various tools and techniques which are
universally acceptable by the world which reduces the barriers for trade in other countries.
Globally diversified organization provides various protection tool and other strategy in order to
expand and sustain their business. Brand loyalty creates the trust among the customers and retain
the customers for a longer time period. Globalization reduces the communication gap between
the countries and maintain the relation with each other and have rights to acquire others country
technology and strategy towards the effectiveness accomplishment of business objective. Joint
ventures and acquisition by the other firm is the strategic tool for the growth of a business
because it has its own competitive strategy and know about the market structure to compete
effectively and long survival in the market place.
CONCLUSION
From the above carried out report, it can be concluded that marketing plays an important
role in growth and success of an organization. Along with this , it can be also inferred that the
role of marketing is to gain information about changing customer needs and demand. From the
above carried out report, it can be concluded that Marks and Spencer and McDonald's had
adopted different marketing strategies in different countries of the world. It can also inferred that
effective marketing practices has helped the brand in attaining higher market share and growth.
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Marketing mix strategy and market entry strategy makes a great impact on the success of an
organization (Gilligan, and Hird, 20120. Internet advertising provides wider platform to access
the information regarding to product and its price along with they can analyze their substitute
and competitive product which are offered by their competitors. Globalization is the key driver
for establishment and expansion of business in other country and affects these drivers when
company want to entering in a emerging market. It reduces barriers for International trade and
provide strategic tool for the long survival in the global market.
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REFERENCES
Books and Journals
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Ruzo, E., Losada, F., Navarro, A. and Díez, J.A., 2011. Resources and international marketing
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Online
Internartional Marketing. 2015. [Online]. Available through: <http://www.marketing-
schools.org/types-of-marketing/international-marketing.html>. [Accessed on 20st
March,2017].
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