Scope and Key Concepts of International Marketing

This document discusses the scope and key concepts of international marketing, including the rationale for willingness to market internationally. It also explores the key criteria and selection process while entering the international market.

International
Marketing

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Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1. Scope and key concepts of international marketing.........................................................3
P2. Rationale for willingness to market internationally.........................................................6
LO 2.................................................................................................................................................9
P3. Key criteria and selection process while entering international market...........................9
P4. Market entry strategies.....................................................................................................9
LO3................................................................................................................................................13
P5. Key arguments in context to local v/s global marketing................................................13
P6. Examine product, pricing, promotion aswell as physical distribution approaches........14
LO 4...............................................................................................................................................15
P7 International marketing approaches................................................................................15
P8. Home v/s international orientation along with ways to assess competitors...................16
CONCLUSION..............................................................................................................................17
REFERENCE.................................................................................................................................18
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INTRODUCTION
International Marketing refersto the marketing principles whichis mainly applicable in
differentcountriesforthe expansion of an organisation in different country boundary. Marketing
playsvery essential as well as crucial role in the present market place which helps in attracting
large number of customers by expanding business functions at international marketplace. With
the assistance of globalorinternational marketing businessorganisation can easily enhance their
sales and profitability of the company (Sheth, 2020). MaBaker is chosen as the base organization
in this report which is a bakery located at middle of Fulham, London. This currentreportis
categorized into two main parts. The first sectionincludes discussion about the scope aswell as
concept of international marketing, routes for market entry, rationale, opportunities & challenges
linked with marketing. Alongwith this it consist of detail description about the entry strategies
and recommendations are given to the management team. In the second
section,detaildescriptionabout the company alongwiththeir current market is included.
Differentiationamong global aswell as local marketingand comparison between home &global
orientation are going to be discussed as follows.
LO 1
P1. Scope and key concepts of international marketing
In accordance to the views and opinions of Czinkota and Ronkainen (2013),
international marketing encompasses institution, practice, activities that take place across the
periphery of home country that tends to give rise to, transfer and exchange offerings which hold
significant value for the stakeholders as well as society (Pegan, Vianelli and de Luca, 2020).
As per the ideologies of Armstrong and et. al. (2015), it can be said that international
marketing can be referred to as the implementation of marketing capability as well as orientation
of a firm at global scale.
According to the views ofAkaka, Vargo and Lusch (2013), it can be stated that
international marketing can be referred to as the integration of practices which intend to
consequently lead to an exchange that creates satisfaction for people across the geographical
periphery.
Scope
The scope of international marketing is presented beneath:-
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Import: This is acknowledged to be one of the most prominent ways of carrying out
international marketing whereby the entities bring products from other nations and sell such
items amidst the potential buyers within the confines of domestic nation (Laksono and et. al.,
2020). Mainly, the usage of imports is made by the organisations for enhancement of product
portfolio of firms.
Export: Hereby, the entities mainly send goods from the domestic country to other
nations with a view to let them sell those items in their domestic confines. The gains from export
are used by the companies for paying off the payment of import while also for covering the cost
of developing products.
Contractual Agreement: This is a way through which companies facilitate expansion
whereby an entity enters into a contractual agreement with the associates in other countries.
Hereby, international marketing provides assistance to inflate sales quantum, base of customers,
profits, revenues and market share.
Key Concepts
Some concepts which pertain to the domain of international marketing are listed and
discussed beneath:-
Domestic Marketing- This is a form of marketing which targets the individuals
belonging to the home market. A domestic enterprise is the entity which operates only within the
confines of domestic nation and possesses absolutely no intention of moving to other countries.
Comparative Marketing- Whereby several marketing techniques and systems are
looked upon together for the purpose of determination of similarity as well as difference
underlying within them, it is referred to as comparative marketing.
International Trade- This is a concept pertaining to the international marketing which includes
the transfer or flow of offerings across the international boundaries (Pegan, Vianelli and de Luca,
2020). The major purpose hereby is attainment of data regarding the financial as well as
commercial condition in context of resource transferring taking place between BOP and markets.
Main differences between international and local marketing
 Local marketing is defined as the application of marketing concepts and practices within
the domestic boundary. On the contrary, international marketing can be said to be the
application of same principles and concepts at a global scale.
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 In context of local marketing, it can be said that hereby organisations have thorough
knowledge of the local beliefs and attitudes of people which makes it easier for them to
conduct marketing activities (Ramon-Muñoz, 2020). Conversely, it is difficult for the
firms to analyse and evaluate the nature and attitudes of customers at a global scale.
 Local marketing makes use of low cost method such as provision of discount, special
offers, loyalty scheme and many more. Opposed to this, international marketing is done
by way of making use of social media marketing, digital marketing, marketing campaigns
etc.
Entry mode
There are different types of entry mode available at the marketplace with the help of which
organisations can easily enter into new or international marketplace in an effective
manner.Thesemodes help in expanding business functions at international marketplace in an
effective and appropriate manner. Some of the most essential entry mode are going to be
discussed as follows which includes opportunities as well as disadvantage Joint ventures:It is one of the most effectiveand popular mode for entering into the new
marketplace where two business organisations joint together in order to combine there
resources to sell high quality goods and services. Opportunities gain by this method is
that it is the mode which help in experience partnership with foreign companies at
foreign market place. But on the other hand disadvantage is that it is quite difficult to
manage and creates negative influence. Online selling: It is another essential mode where companies attempt in order to enter at
the foreign marketplace indirectly with the help of trading international customers
through internet. It is similar to export method where companies maintain their physical
functionality within their native country but sell products overseas. Opportunity of this
method is that it is cost effective and help in attracting large number of customers
through internet whereas disadvantage is that it is less effective due to no physical
presence at international marketplace.
 Direct exporting:It is an entry mode which includes an organization selling products and
services directly to their customers at the international market place. It has also been
identified that business organization can sell offerings to wide range of users where some
of them acts as an intermediaries at the target market.One of the biggest opportunity is
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that it help in expanding their market share at the international market place but on the
other hand disadvantage is that lack of exporting skills leads towards expensive errors. Indirect exporting:According to this mode, business entities sell their products and
services to an intermediary within its own nation. This intermediarysellthese products and
services at international marketplaceaswell as take the responsibility formanaging and
organizing paperwork, arranging marketing and permits. Opportunity of this method is
that it assist in grabbing huge market share at international marketplace whereas
disadvantage is that it is quite difficult to manage business operations across country
boundary. Piggybacking: Itis a unique method of entering at international marketplace. It is the
approach which can be used by business organisation when they have unique goods and
services which they can sell to the domestic firms currently involved in foreign markets.
This method reduces risk as well as costs asgoods are selling domestically
butthemultinational or larger organisations promote their products at global level.
P2. Rationale for willingness to market internationally
Ma Baker is a micro firm carrying out operations within London only at present. This micro
bakery has been immensely successful within the confines of home country. Thus, it is planning
to carry out expansion by way of gaining access to international markets. Doing so will allow Ma
Baker to gain the attention of more number of individuals and thereby enhance its revenues as
well as profits in due course of time. Also, it will allow the organisation to develop a strong
brand image and market positioning across the globe. As a result of this, the concerned micro
bakery will be able to enhance its customer base and consequently its financial performance in
the long run (Takeuchi, Kobayashi and Diway, 2020). Marketing internationally will allow Ma
Baker to tap the attention of individuals persisting within new nation who are conscious of their
health as the organisation makes bakery items with natural ingredients. This will instil a sense of
trust of new customers within the organisation as they would look upon the efforts taken up by
the company to meet their needs and guaranteeing their health and wellness at all times.
Opportunities and challenges associated with international marketing
International marketing is acknowledged as the vaster concept that itself consists of
several opportunities and challenges for business association which have adopted this. With
reference to the current chosen company i.e. Ma Bakers, it has been determined that there are
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few opportunities as well as challenges for this company which could influence business
performance of this company at international scale. Both of them are explained as below in
detailed manner:
Opportunities
The range of opportunities which are available for Ma Baker related to the international
marketing are specified as below:-
 By moving at international market, Ma Bakers could easily approach infrastructural
developments of foreign markets. This would also provide support to Ma Bakers in
reaching larger number of audience and establishing their effective image at international
market scale in quicker manner.
 Along with this, the respective company can also make use of cost effective marketing
strategy in order to develop knowledge of the customer regarding the products and
services offered by Ma Bakers. This would definitely influence customers to make
purchase from Ma Baker that would definitely increase their sales performance as well as
profitability in the rightful manner (Maqsood and et. al., 2020).
Challenges
Some of the main challenges that Ma Bakers could face at the time of marketing
internationally are stated as below:- It has been seen that Ma Baker might face issues related to words as meaning of colours
and numbers in different nations are completely different. Thus, it is essential for Ma
Baker to not make use of any kind of word that could affect feeling of the local people at
international market scale.
(Source: Different Meanings of Colours and Numbers in countries, 2019)
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Illustration 1: Different Meanings of Colours and Numbers in countries

 Ma Baker belongs to UK, thus its bakery items include food items of UK only. There are
probable chances people at international market scale might have different consumable
habits thus they might not accept bakery items offered by Ma Baker in international
market (Park, Tian and Zhao, 2020). This is required to be considered by respective
company while marketing their core products at international market scale.
Routes to market internationally and recommendation
There are several routes by which international marketing can be performed by Ma
Bakers. Some main among them are stated as below:
Direct Route
In this type of route, marketing executives or representatives directly comes in contact
with potential customers in order to influence them make purchase from Ma Baker. Medium of
communication are mail order, sales representative, website delivery etc.
Indirect Route
In this method, marketing representative prefers to interact with customers or develop
understanding about them through third party or mediators (Feyaerts and et. al., 2020). Alliance
partners, system integrator, channel partner, etc. are the common forms of indirect route of
international marketing that would provide opportunity to Ma Baker for persuading interest of
customers towards them.
According to the above explained marketing routes, it is recommended to Ma Baker to
make use of indirect route while marketing at international scale. This would definitely help the
company in influencing interest of maximum number of customers and enhancing their sales
performance as well as profitability.
After examining the whole information it has been concluded that there are both positive as well
as negative impact of conducting operations at international marketplace. Positive aspect is that
there are various methods or channels with the help of which an organization can easily operate
its business functions at global level whereas negative aspect is that they need to examine the
whole marketplace before expanding business which requires lot of time and money.
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LO 2
P3. Key criteria and selection process while entering international market
Selection process acquired by Ma Baker at the time of entering into international market
is specified as below:
International marketing objective: Here, location is finalised by company as its core
objective.
Parameters for selection: Accessibility towards infrastructure as well as raw material,
government laws and magnitude towards rivalry are acknowledged as main parameters used by
Ma baker for selection.
Preliminary screening: In this preliminary screening would be performed on the basis of
population size, consumer behaviour, economic conditions etc.
Analysis and Selection: The analysis would be done through checking feasibility of
project.
Test marketing: At this level bakery items would be sold at few chosen locations for
determining consumer reaction towards the same.
Commercial Production: After determining test marketing successful, Ma Baker would
initiate producing its natural bakery items in chosen international market.
Key Criteria
At the time of using selection process for selecting market, Ma Baker mainly makes use
of few important criteria such as infrastructural development, level and nature of rivalry, rules
and regulations etc. By following this, it has been determined that Ma Baker has finalised to
move to Dubai as the core international market.
P4. Market entry strategies
There are different methods with the help of which a business entity can enter into the
new and global marketplace. Some of the most essential market entry strategies which can be
used by management team of Ma Baker are goingto be discussed as follows:
Strategy Description Pros Cons
Export
 Low entry cost
 Moderate and
limited financial
 Lessprofits on the
transactions
 Highly emphasize
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Withthe help of
foreign agent
risk on foreign agent
 Unable to gainglobal
experience
By foreign distributor  Less staffing needs
 Low marketing cost
 Highcostoftransport
ation
 Potential trade
barriers
Licensing Sales of rights canbe
back up by the patent
aswell as intellectual
property whichis
adopted for the
purpose of commercial
trade at foreign market
 Less cost for entry
 Lowriskof finance
 Limited control on
the maintenance of
quality of goods at
global market
 Comparativelylimite
d income (royalties)
Franchising Domestic franchisor
can Sale the rights
inorder to carry
outtheiractivitieswitht
he help of foreign
franchisee
 Chances of high
foreign expansion
 Lesscost of entry
 Needto control the
cost
 Chances of
franchisee’s
disloyalty at the
marketplace
Apart from above mentioned entry strategies, there are some other strategies which can be
adopted by business organisations in order to expand their business functions at global level.
Some of the other market entry strategies are going to be discussed in detail manner as follows: Joint ventures:Itdefine as a entry strategy where a specific firm develop partnership which
includes a development of new or third independently managed Business entity. It generally
denotes as 1+1=3 process where two organisations agreed to work in a specific market and
create new business entity. Biggest advantage is that risk as well as profits are mainly shared
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by both the parties in equal manner. Whereas disadvantage is that it might create disputes
and conflicts among the partners which affect the overall business operations. Strategic alliance: A strategic alliance refers to acontractamong two or more
partieswherethey agreed in order to fulfil some need full objectives while remaining
independent business entity. Itrefers to a strategy where two organisations create strategic
alliance where each possesses more than one business assets and have expertise
whichwill aid others by enhancing their business functions. Advantage of this strategy is
that it help in reducing cost and risk of the company but on the other hand
disadvantageisthatresources as well as profit is needed to be shared by both the business
entity. Merger and acquisitions: Another strategy for entering into the international marketplace
is merger and acquisitions. In reference to merger, it define as the combination of two or
more organisations to form a new one whereas in relation to acquisition a well stable
organisation take over the other company in order to grab market share. Advantages of
merger and acquisitions is that it help in enhancing and adding value to the organisation
which increases profitability of the company. But in case of disadvantage of merger and
acquisitions is that there might be clashes of culture which influences business functions
in a negative manner.
Implementation of market evaluation criteria, entry strategies aswell as recommendations
After conducting selection procedureas well asexamining the evaluation criteria, it is said
that Dubai is the country chosen for the business expansion (Quan and Lin, 2020). It has been
identified that UAE is at 66th rank in reference to bakery products at international market. Also
UAE bakery witnessed hugesuccess and growth fromtheyear2010 to 2014 andthe value aswell as
sales volume raised to US$682.9 million & 200,100 tonnes. It has been said that Ma Baker tap
the benefit of health-conscious pattern of the people and they provide them fresh and organic
piesandbreads to the peoplewithin UAE. Therefore, it has been concluded that
bakeryindustrywithin UAE is growing at the rate of 7% p.a. (Bakery Industries in UAE
countries, 2019).
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(Source: Retail Volume in Tonne - Bakery Products Subsectors in UAE, 2019)
Onthe other hand, by examining the benefits of licensing, it hasbeenrecommended tothe
management team of Ma Baker thatthey must adopt licensing for maintaining long term
sustainability at Dubai as it requires low cost as well as financial riskisquite low in this method.
With theassistanceofabove discussion, it hasbeenconcluded that global marketing isone of
the most feasible method for local organisation in order to increase their sales and profitability. It
has also been identified that local as well as international marketing are different concepts. It
hasbeen examined that international marketing provides opportunities alongwith some
challenges to thebusiness organisation whiledoing business expansion at international
marketplace. Beside this, there are different types of market entry modes which assist in
performing business functions at international marketplace. Apart from this, It has also been
recommended to the management team that they must adopt licensing asit is one of the most cost
effective method which is associated with limited financial risk.
After evaluating the whole aspects, it can easily be concluded that there are some benefits and
demerits of all the factor. Herein, while doing expansion there are various methods with the help
of which an organization can easily conduct their functions at global level as per their suitability.
But on the other hand, sometimes because if range of products there might be creation of
confusion and complexity which leads towards the decrement in business growth.
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Illustration 1: Retail Volume in Tonne - Bakery Products Subsectors in UAE

LO3
P5. Key arguments in context to local v/s global marketing
Ma Bakerisa bakery located within Fulham, London deals in home made fresh bread
which is prepared with organic as well as stone-ground flour. At present company is doing its
functioning at the market place of London where it is rewarded aswell as recognised by different
well known organisations (Baier-Fuentes and et. al, 2019). In addition to this, it is the business
entity which also provides online classes ofcooking bakery products and is one of the
wellknownclasses within London.
Differences among global and local marketing
BASIS LOCAL MARKETING GLOBAL MARKETING
Scale of
operations
Inthis context production,
salepromotionaswell as distribution
of goods take place within a
country.
In this, operation and function is
mainly takes place across the country
boundary.
Risk and ease It is comparatively less risky
&easyto execute.
Onthe other hand, it is quite
complexmethodsaswell as contains
huge risk.
Financial
Resources
It needslimited amount of money to
conduct business operations at
domestic market.
Internationalmarketing needs high
amount of money in order to perform
business functions in different
countries.
Example Ma Baker is oneof the excellent
example of domestic marketing
where they adopt different strategies
in order to attract large number of
customers towards them.
On the other hand, Airbnb is the
example of international marketing
where they introduced a social media
campaign
knownas#OneLessStrangerwhichhelp
the company inorder to expand almost
1.5 million listings aswell as allow
users to fix& list accommodations in
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around 34,000 cities at global level.
It has been identified that global marketing is quite beneficial for organisation as it assist
in creating ample number of opportunities for the company. Itstrengthen the customer base by
providing them high quality products and services to the customers in order to retain them for a
longer period of time (Radulovich, Javalgi and Scherer, 2018). Furthermore, anotherbenefit is
that it help in increasing market share of the company which is not gain by local marketing. Ithas
also been identified that local marketing is limited to a country as it is unable to grab attention of
large number of people for a longer period of time.
Accordingto some people local marketing have an edge oninternational marketing as it is
less complex andrequires Limited amount of funds. Therefore, it can be said that chances for
maintaining long term sustainability increases when a business entity is involved in doing
business functions at local marketplace. In this context, international marketing is examinedas
less effective as customer interaction at international marketplace is quite difficult.
P6. Examine product, pricing, promotion aswell as physical distribution approaches
Marketing mix includes 4 P’s which are product, promotion, price and distribution whichhighly
influence a business entity while expanding their business functions at international marketplace.
In the present context, while doing business expansion at Dubai marketing efforts of the
company Ma Baker arequite different from the domestic country, UK.
Element London, UK International Markets
PRODUCT Company provides organic, fresh,
aswell as home-made breads &
pies to thecustomer according to
the needs of people.
The offering of Ma Baker might be
optaccording to the language,
preference, consumer demographics,
of new markets.
PRICE In this contextprice of the bakery
items isquitehigh as theyhave loyal
customer base and positive brand
image.
Management team of Ma Baker
implement penetrative pricing
sothatthey can attract large number
of customers towards them at global
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market.
PROMOTION At present, promotion ofthe
company is done with the help of
Instagram, Facebook, Pinterest
Twitterandmany more.
At international marketplace,
organisation can adopt strategies like
socialmedia, marketing campaigns,
sales agents andmany more in order
to attract customers towards the
company (Thussu, 2018).
DISTRIBUTION Ma Baker offeronline delivery
facilities to their consumers with
the help of their own website.
In global markets, bakerycan adopt
methods like retailers, wholesalers,
channel partnersandmany more.
After examining the above analysis it has been concluded that both local and global marketing.
Local marketing have their own pros and cons and similarly global marketing have its own
impact. Therefore both plays essential role in their own manner and help in developing positive
impact at the competitive marketplace. While doing local marketing, the main focus is domestic
market but on the other hand global marketing capture whole marketplace. This says that as
compare to local marketing, global or international marketing have more positive aspects. But on
the other it requires lot of money, time and cost.
LO 4
P7 International marketing approaches
There are different global marketing approaches which can be adopted by Ma Baker
goingto be discussed as follows:-
Multinational:Itrefers to the businessentities which have differentstores, outlets and
services located at various countries buton the other hand every business location performtheir
functions in their own way. Example: McDonald's
Global: It defines as the one which focuseson the outlets whichis located in different
countries but follow a set culture. For Example: Airbnb, Starbucks and many more.
Transnational: These entities are mainlyofcomplex nature as well as operate substantial
services while doingtheirbusiness functions in different countries. They are the who do not give
preferences to a single country as their domestic place. For Example: Nestle
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P8. Home v/s international orientation along with ways to assess competitors
Home orientationdefine as an effective approach whereorganization personnel notice
similarities within markets aswell as usually assume that allthe goods which creates impact at
local market will be success in global marketplace.
Implication:Itemphasizes to set positive coordination amonglocal as well as international market
for the management team of Ma Baker.
Ways to assess competitors:Itsays that the competitors power is not effective as it does not create
any kind of damage to the goodwill of the company.
International orientation define as the approach based on the assumption that
bothsimilarity and differences existat various marketplace. These similarities aswell as
differences can easilybeunderstood to adopt a strategy whichcan effectively work in referenceto
international markets.
Implication:Thiskind of orientation mainlybased to provide competitive edge to the company
over theircompetitorsin order to ensure longtermsustainability atthemarketplace.
Ways to assess competitors: Thisisanapproach assumes that threat of rivalry is quite high and
theyhave the capability to affectthe image of business entity in international market.
From the above stated report, it is said that marketing mix arequite different in reference
to local as well as global marketplace. It hasbeenrecommended to the management team of the
bakery thatthey must use penetration pricing sothat they can grab attention of large number of
people within the market of Dubai. Apart from this, it has also been suggested that they
mustconsidersocial media as well as digital promotional activities. In referenceto the products, it
hasbeenrecommended tomanagement team that they must emphasis on expanding their product
line byconsidering the nature of health-conscious peoplelocated in Dubai. On the other hand, it
has also been recommended to the management team of Ma Baker that they need to take
assistance of intermediaries like wholesalers, retailer and many more.
There are both positive and negative impact of international marketing approaches which has
been identified after conducting the analysis. It has been said that adopting these approaches
help in gaining positive response from customers at the competitive marketplace. Which leads
towards the attainment and growth of business organisation at international marketplace. But on
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the other, conducting market research requires lot of efforts time and cost which becomes
difficult while expanding their business functions at global level.
CONCLUSION
With the assistance of above stated report, it has been concluded that here are ample
number of marketing policies which can be opt by different organizations while expanding their
business functions. licensing, franchising as well as joint venturearesome of the most essential
factors which help in doing business expansion at international market. Along with this, with the
help of adopting best and most suitable method for doing marketing entry can leads towards the
attainment of organizational goals and objectives at international marketplace.
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