International Marketing: Scope, Rationale, Routes, Criteria, and Strategies

This document provides an in-depth analysis of international marketing, including the scope and rationale for entering the international market, different routes to market, evaluation criteria, and market entry strategies. It focuses on the case of Gillette Company and its plans to expand its presence in Cyprus.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Analysis of scope addition to key concept of international marketing..................................1
P2. Explanation of rationale for the company to want to market internationally as well as
description of diverse routes to market. Evaluation of opportunities and challenges which
marketing internationally provide to the company......................................................................2
P3. Evaluation as well as application of key criteria along with selection process that are to be
used while considering the international market to enter............................................................4
P4. Explanation of different market entry strategies to target international market....................5
P5. Overview of key arguments in local vs global debate along with evaluation of context and
circumstances wherein organisation should adopt global or local approach. .............................7
P6. Investigation about ways of product, pricing, promotional along with distribution approach
differs in variety of international contexts...................................................................................8
P7. Explanation and analyses of various international marketing approaches entities can adopt.
....................................................................................................................................................10
Covered in PPT..........................................................................................................................10
P8. Comparison among home and international orientation as well as ways to assess
competitors by outlining implications of each approach...........................................................10
Covered in PPT..........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing is defined as applying marketing principles with purpose to
satisfy varied choices and requirements of distinct people that resides across borders of particular
country. It includes recognising that people across world have distinct needs (Ahi and et.al.,
2017). To understand concept of international marketing, Gillette Company is selected. It is a
brand that promotes and sells safety razors as well as other personal care commodities that
includes various shaving supplies. It was established by King Gillette as safety razor
manufacturer in Massachusetts. United States. The report highlights information about concept
and scope of international marketing, routes to market, criteria and procedure of selection to
enter in international market, different market entry strategies. Further, it includes arguments for
local and global debate, ways approaches of elements of marketing mix differs in international
contexts.
MAIN BODY
P1. Analysis of scope addition to key concept of international marketing.
International marketing is defined as performing activities of marketing at global scale
for gaining commercial benefits. In other words, practices related to marketing that are
performed by enterprise on international level refers to international marketing.
Some of the international marketing features are as follows:
 It involves two or more set of variables that are uncontrollable.
 There is tough competition in international marketing.
 It depends on factors and conditions which are risky and challenging.
Gillette Company is a brand that performs operations from United States. The company
has wide market shares and presence in almost all parts of world. But, at same time, it lacks
official presence in one of country that is Cyprus. The managers are planning to expand its
presence and operations in this country.
Key concept of International Marketing
It refers to the application of marketing in such a manner which satisfies the needs,
demands and wants of customers across the globe (Amankwah-Amoah, Boso and Debrah,
2018). The ways through which a company like Gillette can take its products and services to a
global level includes Global Web, Licensing & Franchising , Joint Ventures, Direct Investment
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and Exports. The international market concept generally includes broader market, intense
competition, usage of international resources and commitment for satisfying local and foreign
demands. Each one of these methods has its utility for the organisation for expanding its business
to international horizons. Nowadays, it is essential for any enterprise to be global and have a
mass outreach if it has to sustain itself in an emerging market in an era of globalisation.
Scope of International Marketing
International Marketing is very important in a global arena as it has a wide outreach and
scope as the companies can go abroad using it. It can be in the form of imports which means
purchasing of goods from foreign, exports which means selling goods to other countries,
contractual agreements which means getting into a contract with international companies, joint
ventures that is coming together to create a strong brand, fully owned manufacturing in it
organisations can own a fully owned manufacturing plant internationally for the production of
goods and can hire local workers. By adopting the concept, Gillette company will enjoy wide
scope of international marketing that are as follows:
Establishing brand: International marketing has generally wide scope as it allows to
establish brand in other nation where no operations are performed by the entity.
Licensing arrangement: It is legal contract among two parties that are licensor and
licensee wherein licensor grants rights to the licensee for producing along with selling
commodities, using patented technology while going internationally.
P2. Explanation of rationale for the company to want to market internationally as well as
description of diverse routes to market. Evaluation of opportunities and challenges which
marketing internationally provide to the company.
In present era, it is important to promote existing business and gain huge market share for
the purpose to market internationally (Eteokleous, Leonidou and Katsikeas, 2016). Organisations
wants to market international so that they can generate huge revenue proportion and expand
operations in other nations too. Gillette is popular brand which offers varied personal care
commodities, safety razors and many more. Following are some rationale for chosen company to
market internationally:
 Diversifying income stream and generating huge revenues so to cope with new sales is
main rationale for Gillette to market internationally.
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 International marketing helps in increasing sales of company as when an organisation
promotes and sells its commodities in other country or market then it results in increasing
sales of offerings.
 The another rationale for the firm that wants to go internally for marketing commodities
is to gain government incentives and increasing innovations. Seeking growth opportunities through providing varied organisational products to the
other nations that are not offered by domestic business and grabbing attention of large
targetted audience is another rationale for chosen business that wants to market at
international level.
Various market routes
Market routes are the method which businesses can use to get the products to its targeted
customers. Few of the routes that Gillette company may adopt are as described:
Exporting and importing: Selling organisational commodities from domestic area to
international country is exporting. However, purchasing foreign commodities to bring them in
home nation is importing. It is a route that helps companies to provide the commodities to
targetted people either in domestic market or in international market.
Investment: It is defined as the money spent to purchase the commodities which are not
consumed in present context but will be used in upcoming duration. Companies uses this market
route to create wealth in other nations. By using this route, Gillette Company can make
investment and enter in other markets through procuring commodities which will be more in
demand in future.
Other operational activities:
Selling online: In recent times, selling online is one of market route to sell products to
many people through e commerce websites (Mathews and et.al., 2016). Customers prefers more
to shop online as it provides faster as well as safer transactions. By adopting this market route,
Gillette company will be able to satisfy more demands of population that is locates at far places
by selling its products online.
Setting own store: In this route, organisation have to set a physical store by own name
wherein customers can touch, feel and see the commodities prior to purchasing. By opening own
store, Gillette company can enhance shopping experiences along with encourage customers to
buy more from the stores.
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From mentioned market routes, managers of Gillette company can go international with
exporting and importing route as it will assist in satisfying more people and making secure
transactions. With this, managers of the organisation can purchase and sell commodities both in
foreign and domestic market.
Opportunities and threats
International marketing provides wide opportunities and threats to entities which plans to
go international (Moon and Oh, 2017). Considering opportunities, Gillette company while
marketing at international level can generate best economies of scale, attain strategic alliances,
sustainability and huge investment returns. However, challenges provided by such marketing to
chosen company will include imposition of tariffs, taxations by political system of other nation,
considerable diversities, ethical challenges, bureaucratic regulations addition to exchange rate
variations.
P3. Evaluation as well as application of key criteria along with selection process that are to be
used while considering the international market to enter.
International marketing is defined to the implementation of activities for designing plan,
promotion, flow and prices of products to consumers in more than a particular country for profit.
Environment of international market is generally dynamic in nature that can create huge
difficulties for Gillette Company to operate actions in international market. The company has
presence in almost international market but lacks official presence in Cyprus country. Therefore,
it is essential for it to focus on following criteria while choosing global market for entrance:
Availability of resources: This is one of important factor that needs to be taken into
consideration while making entrance in global market of Cyprus country. Resource availability
in terms of manpower, assets, technologies, materials and other resources should be considered
by Gillette Company at the time of taking a foot forward for the global market (Morgan Feng
and Whitler, 2018) .
Proper infrastructure: The duration when managers of chosen firm plans entrance in
Cyprus country, they are required to analyse and monitor proper infrastructural facilities which is
needed for setting premise and operation successfully. Hence, focusing on infrastructure criteria
is key for business while considering entrance in new oversees market.
Selection process:
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The term selection is stated to choosing specific option among wide choices or
alternatives. The mentioned selection process must be use by Gillette Company while
considering the international market to enter:
Devising internal marketing aims: In this phase, top organisational management sets
aims in order to expand operations and activities in oversees market. In respect with Gillette
Company, top management team sets global objectives of increasing sales volume to 20% and
profit levels for expansion.
Identifying and evaluation alternations: When company sets objectives, the next is to
identify of huge alternatives to set business. Chosen company further evaluates alternatives and
perform further actions.
Preliminary screening: Herein, Gillette managers scrutinise all evaluated alternatives for
getting best choice of decisions to set business. In this, they considers factors including
population size, per capita income, structure of economy and so on.
Analysing, monitoring and selecting suitable destination: In this stage, best decision
for the destination to expansion are taken after analysing cost benefits along with feasibility.
They monitors all criteria and further selects effective destination wherein they will gain best
responses for products.
Testing: Herein, selected market is tested through selling samples of organisational
goods. In context to Gillette company, it sells some of its razor or personal care products in
Cyprus country so to gain understanding about perceptions and choices of targetted population
and further makes decision for product offerings.
Commercial production: Suitable results in market testing assist companies like Gillette
to manufacture and sell products in large scale so that operations are properly executed to
achieve objectives.
Hence, it is recommended to Gillette Company that they should consider the mentioned
criteria and follow selection process effectively to gain better results.
P4. Explanation of different market entry strategies to target international market.
Market entry strategies refers to the ways through which companies enter in foreign
country for targeting global market (Schmid, Grosche and Mayrhofer, 2016). There is not one
market entry strategy that can be used by a firm to enter into various market as they can enter
through various ways.
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Evolution of strategies in internationalisation process
Internationalisation process involves various strategies that has been evolved from shifts
in trading systems, practices and standards. Strategies that are part of the process are licensing,
direct exporting and so on that were evolved few years ago. In the mid 19th century,
internationalisation strategies were evolved through establishment of miniature subsidiaries
replica Abroad. Along with this, limited global integration also played huge role in evolution of
all the strategies to go internationally.
The chart related to evolution and expansion of international strategy at global level is as
follows:
Explanation of process
The explanation of evolution of strategies in internationalisation process is as follows;
Patterns of expansion: It includes expansion patterns which are in active passive format.
Moreover, in this stage, different patterns related to expansion were evolved. Some were external
to internal business handling while others were associated to limited to extensive operations
mode.
Deepen commitment modes: In this stage, commitment modes to go international were
deepen. Herein, various commitment were made and strengthen so that further activities were
processes effectively.
Geographic diversification: In this, practices were performed in similar cultural
background that assisted in gaining huge recognition along with revenues.
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Leapfrogging of expansion: In this stage, activities were initiated with global focus that
helped businesses in increasing operations at international level.
Few of the strategies related to market entry for Gillette company are explained below:
Direct exporting: It refers to selling products directly in chosen market with own
business resource. For example, When Gillette Company will use this strategy then they will
gain various opportunities to contact directly with the customers. The advantage associated with
the direct exporting strategy is that it provides huge control on procedures of exports to entity
and helps in making closer relations with overseas buyers along with market. However,
disadvantage of it it that it requires great initial investment for directly exporting goods in new
market and includes huge risks concerned with credit, rejected merchandise and financing.
Licensing: It is said to sophisticated arrangement in which a company transfers rights to
another one for using product, business model and manufacturing process (Skarmeas, Zeriti and
Baltas, 2016). For instance, it will be useful for Gillette Company when purchase of license
have large market share within the targetted international market that selected one prefers to
enter. Advantage of licensing strategy is that it provide easy and quick entry into international
location with low capital requirement. Moreover, large investment returns are realised quickly in
this strategy. In contrary, disadvantage of using it is that license period is limited, licensee may
emerge as competitors after some duration and limited control can remain with the entity.
From above evaluated market entry strategies, Gillette Company should adapt licensing
strategy to market its products in market of Cyprus country. Through achieving license from the
well popular retail store that have sustained operations in the chosen market so that it can
produce, sell and promote products to gain huge responses.
P5. Overview of key arguments in local vs global debate along with evaluation of context and
circumstances wherein organisation should adopt global or local approach.
Marketing plan is important for all organisations whether adopting local approach or
global approach. Top authorities of Gillette Company analyses local as well as global presence
so that further plans are framed accordingly. The chosen business is involved in offering
personal care and various razors in local market of U.S. For entering towards global market, it
requires effective planning with devising suitable strategies.
Local marketing is defined as as local marketing plan which is prepared by firms attract
population from domestic or native nation (Souchon and et.al., 2016). However, global
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marketing is defined as marketing plan for providing and satisfying products in nations across
boundaries. In local debate, targetted customers are from finely gained locations that are
neighbouring cities. In contrary, global debate helps in targeting customers from oversees
nations. Companies such as Gillette by using local debate, focuses on running business in smooth
manner by focusing on developing and maintaining relationships with consumers within local
market. On other hand, using global debate, the respective business gives major focus on
developing innovations after understanding trends and needs of international market.
From above arguments, it can be said that when business like Gillette Company has
objective to make relations with native population and satisfy their needs then in this situation
organisational managers should adopt local approach as it will help in properly fulfilling all
essential needs of native area and making sustainable position. Where as, in the scenario where
the same business wants to leverage international opportunities, gaining competitive benefits and
expanding market share then it should go with international approach. With this approach, it will
be able to gain international opportunities for business expansion and enjoying competitive
advantage by making strong international image of brand.
P6. Investigation about ways of product, pricing, promotional along with distribution approach
differs in variety of international contexts.
Marketing mix refers to set of tactics which entities uses for promoting brand along with
commodities in market. Marketing mix includes 4P's that are as defined:
Product: Product is defined as tangible commodity which is designed and manufactured
for selling purpose. Moreover, it is offered to gain revenues. In context to Gillette Company, it
offers various products such as razors, blades and other cosmetic products.
Price: It is payment quantity that are set for consumers so that they can avail the products
after paying some money. Gillette Company sets its prices by using various pricing strategies
such as competitive pricing and so on.
Place: Place is the location where products are available to the consumers. Companies
distribute their products at various places. In case with the company, it provides its products
through opening stores, online websites and many more.
Promotion: the set of activities that helps in communicating product, service addition to
brand to the users located at wide places. Marketers of the firm promotes the products by using
various marketing techniques such as sponsorships, social media marketing, hoardings and so on.
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Following are some of the ways in which approaches of product, pricing, promotional
and distribution of Gillette Company differs in various international contexts such as United
States and Europe:
Differentiation basis United states context Europe Context
Product Gillette Company offers
products including shaving
cream, razors, blades, deodorant
and many more for grabbing
more market shares by satisfying
native population.
For expanding in Cyprus country that
is in Europe, Gillette Company for
leverage opportunities will offer its
specialised products and later after
understanding market needs will
produce commodities accordingly.
Price Product prices are set as per
purchasing power of local people
(Williams and Chaston, 2016).
Moreover, In US market,
selected firm uses competitive
pricing strategy for making
strong image against rivals.
In this context, product prices will be
set as per economic status of country
and purchasing power of targetted
consumers. In this, bundle pricing is
majorly adopted to selling set of
goods at affordable prices.
Promotion Within US market, Gillette
company promotes the business
and products through hoarding,
advertisements and personal
marketing.
In Europe market context, Chosen
firm uses social media marketing,
relationship marketing and
sponsorships.
Distribution Products in such international
context are distributed through
physical stores and home
delivery options.
Within Europe context, using option
like online platforms, retailers,
physical stores and wholesalers are
used for distribution specialised
products (Zeneli, 2016).
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From viewpoint of Srinivasan (2016), marketing mix is applied in different ways in
distinct market context. In context to US market, the element are used for proving all products to
native market to gain competitive advantage. But in Europe market context, Gillette company
adopts marketing mix elements to sell specialised products through making relations with global
customers.
P7. Explanation and analyses of various international marketing approaches entities can adopt.
Covered in PPT
P8. Comparison among home and international orientation as well as ways to assess competitors
by outlining implications of each approach.
Covered in PPT
CONCLUSION
The above report concludes that international marketing concept is performance of
organisational tasks for planning, pricing, promoting together with directing flow of
commodities to consumers in more than a country to make profit. Selling online and setting own
store are some routes to market. Criteria of proper infrastructure and raw material availability
must be considered by company while making decision to enter in particular market. Direct
exporting as well as licensing are some market entry strategies through which enterprises can
target international market. To gain more revenues, sustainability and return on investment, it is
recommended to business to adopt global approach.
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REFERENCES
Books and Journals:
Ahi, A. and et.al., 2017. International market entry: how do small and Medium-Sized enterprises
make decisions?. Journal of International Marketing. 25(1). pp.1-21.
Amankwah-Amoah, J., Boso, N. and Debrah, Y. A., 2018. Africa rising in an emerging world: an
international marketing perspective. International Marketing Review.
Eteokleous, P. P., Leonidou, L. C. and Katsikeas, C. S., 2016. Corporate social responsibility in
international marketing: review, assessment, and future research. International
Marketing Review. 33(4). pp.580-624.
Mathews, S. and et.al., 2016. Internet marketing capabilities and international market growth.
International Business Review. 25(4). pp.820-830.
Moon, B. J. and Oh, H. M., 2017. Country of origin effects in international marketing channels.
International Marketing Review.
Morgan, N. A., Feng, H. and Whitler, K. A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Schmid, S., Grosche, P. and Mayrhofer, U., 2016. Configuration and coordination of
international marketing activities. International Business Review. 25(2). pp.535-547.
Skarmeas, D., Zeriti, A. and Baltas, G., 2016. Relationship value: Drivers and outcomes in
international marketing channels. Journal of international marketing. 24(1). pp.22-40.
Souchon, A. L. and et.al., 2016. Spontaneity and international marketing performance.
International Marketing Review.
Srinivasan, R., 2016. International marketing. PHI Learning Pvt. Ltd..
Williams, J. E. and Chaston, I., 2016. Links between the linguistic ability and international
experience of export managers and their export marketing intelligence behaviour.
International Small Business Journal.
Zeneli, V., 2016. Corruption, foreign direct investment, and international marketing in the
Western Balkans. Thunderbird International Business Review. 58(3). pp.277-291.
Online:
Routes to market. 2020. [Online]. Available through:
<https://www.thinkbusiness.ie/articles/find-the-best-route-to-market/>
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