International Marketing Report: Amazon's Global Market Approaches

This report provides a comprehensive analysis of Amazon's international marketing strategies, examining the scope and concepts of international marketing within the context of Amazon's e-commerce business. It delves into the rationale for international market expansion, exploring opportunities and challenges, and outlines key criteria for selecting international markets. The report further investigates various market entry strategies, such as exporting and joint ventures, evaluating their advantages and disadvantages. It then addresses the global vs. local debate, highlighting the importance of cultural and language considerations in marketing. The report also examines Amazon's marketing mix, including product, price, promotion, and distribution strategies, and how these elements are adapted across different contexts. Finally, it discusses international marketing approaches and ways to assess competitors, offering a thorough overview of Amazon's global marketing practices and considerations.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Scope and concepts of international marketing...........................................................................3
Rationale for organisation to want to market internationally and routes to international market
.....................................................................................................................................................4
Opportunities and challenges for international marketing...........................................................5
LO2..................................................................................................................................................6
Key criteria and selection process while selecting international market to enter........................6
Different market entry strategies and their advantage and disadvantage....................................7
LO3..................................................................................................................................................8
Key arguments in the global vs. local debate..............................................................................8
How product, price, promotional and distribution approaches differs in variety of contexts.....8
LO4..................................................................................................................................................9
International marketing approaches organisation can adopt.......................................................9
Home and international orientation and ways to assess competitors........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing can be defined as performance of business activities through
which business can direct the flow of goods and services to consumers or customers outside
national boundaries. This report will discuss about international marketing and its different
elements in context of Amazon, multinational American technology company, founded in 1994
company is headquartered at Seattle, Washington, US. Amazon operates in different industries
and in this report e-commerce business of Amazon will be contextualised. This report will
discuss scope and concepts of international marketing and rationale that organisation wants to
market internationally. Followed by this report will include key criteria to consider while
selecting international market and different elements of marketing plan and will discuss
international marketing approaches.
LO1
Scope and concepts of international marketing
Scope of international marketing includes-
Export- This is a practice of international marketing in which goods and services are exported to
other country. In this Amazon require to export or its goods to other countries for sale. Amazon
is a retail organisation and this is why exporting is very important element of practices of
Amazon in which goods are exported to other countries.
Import- This is a practice on international marketing in which goods are imported or brought
into one country (Sheth, 2020). In this practice Amazon requires to brought goods or products
from different countries into home country or country where Amazon operates.
Re-export- This involves importing semi-finished goods, then processing them further and
preparing finished goods and exporting them.
Managing international operations- This includes operation of marketing and sales facilities in
foreign countries and establishment or production or assembly facilities in foreign countries. In
addition to this managing international operations and practices in foreign countries.

Key concepts of marketing includes-
Contract Manufacturing- Contract manufacturing is one of the concepts of international
marketing in which businesses from one country create contract for manufacturing with firm of
another country.
Franchising- This involves giving license to organisations so that they can operate on the name
of franchiser.
Fully owned subsidiary- In this organisations establish fully owned subsidiary in international
market for entering into the market.
Rationale for organisation to want to market internationally and routes to international market
There are several reasons because of which organisation want to market internationally
and as Amazon have also marketed internationally and have its existence around world, some
rationale are-
Diversified income stream- This is one of the most important reason for Amazon to market
internationally (Katsikeas, Leonidou and Zeriti, 2019). As per this reason international market
provides different and diversified income streams and on the basis of this Amazon can increase
its income and profit from different areas.
Adapting to demand fluctuations- This is another reason in which marketing internationally
helps in adapting to demand fluctuations that takes place in domestic market. In this demand
fluctuations in domestic market can be compensated through international marketing.
Technology reaches customers in more places- This is another rationale for Amazon that
through international marketing they can take their technology to more places and customers.
India is one of the examples where Amazon took its technology and made it reach to more
places.
Large size of market- International marketing also increases size of market that increases
customers for the company and making it one of the reasons for market internationally.

Increased growth rate- This involves increasing growth rate of the company. International
marketing helps company in growing and regarding Amazon growth of e-commerce in India
provided benefit to Amazon and contributed in growth of the company.
Routes to international market are-
Joint Venture- This is one of the route for joint venture in which two companies from different
countries come together to develop a new business.
Foreign direct investment- This is another important route for entering into a market and this
route involves directly investing in companies or businesses of a country (Katsikeas, Leonidou
and Zeriti, 2019).
Merger and acquisition- This is another route for international market and as per this route
merger is concerned with merging two companies to share resources as well as profit.
Acquisition on the other hand is concerned with acquisition of power of a company that has been
acquired by Amazon.
Opportunities and challenges for international marketing
Opportunities for International marketing are-
Economies of scale- Organisations can take advantage of their economies of scale and increase
production and reduce cost because increased demand of international market can be fulfilled by
increasing production.
Spread risk- This means that international marketing spreads business risks of Amazon. In this
risk in one market and loss in market does not cause loss to entire organisation.
Challenges for International marketing are-
Competition- This is one of the biggest challenge for international marketing in which Amazon
requires to deal with different types of organisations operating in e-commerce industry
(Amankwah-Amoah, Boso and Debrah, 2018). These organizations include other international
organisations as well as domestic organisations of international market.

Different consumer behaviour and orientation- This challenge is concerned with customers
and buyers or potential market. Amazon identified this difficulty that consumer behaviour in
India is different from its home country and changed its approach in India. This also occurs
because of different culture.
Government control- This is also a challenge that Amazon experienced regarding its
international marketing in India. Government has strict rules and regulations for international or
foreign organisation and this create challenges in international marketing.
LO2
Key criteria and selection process while selecting international market to enter
Market Attractiveness- This can be identified on the basis of evaluation of market in terms of
revenues that can be generated from a market. India is a highly attractive market because of large
size of market.
Culture- This is very important to consider because cultural differences play important role in
determination of whether the business will be successful or not.
Legal and regulatory barriers- This means that business should be flexible to work in foreign
market and legal and regulatory barriers play important role in flexibility of business operations
(Anastasia Belyh, 2019).
Per capita income- This helps in determining potential profit that Amazon can earn in an
international market. High per capita income reflects high purchasing power and profit potential
for Amazon also increases on the basis of this.
Process for selecting international market to enter
International marketing objectives- This involves outlining why Amazon wants to market
internationally and what are desired ends for international marketing.
Parameters for selection- This involves determination of parameters and criteria for selection
including resources of firm, market situation and nature of competition.

Preliminary screening- This is another important step in which Amazon makes preliminary
screening with an objective to eliminate market with no potential.
Short listings of market- On the basis of preliminary screening in this stage market are
shortlisted that Amazon can consider entering in its international marketing.
Evaluation and selection- In this stage market that have been shortlisted are evaluated and
market with highest potential benefit is selected by Amazon (Process to select International
market, 2019).
Test marketing- This involves undertaking test marketing or launching business at small scale
to understand response of people regarding Amazon in international market.
Commercial production- This involves starting commercial activities of Amazon after test
marketing in international market.
Because Amazon is a retail organisation factors like per capita income and legal and
regulatory restrictions are very important to be considered while selecting international market.
Different market entry strategies and their advantage and disadvantage
Exporting- This is a mode of market strategy in which Amazon requires to directly export goods
and services in international market.
 Advantage of exporting includes that before starting operations in international market
organisation can understand response regarding products and services and this is also a
less time and cost consuming method.
 Disadvantage of export includes that it involves significant financial risk and inadequate
and insufficient market information can create difficulties for business.
Joint Venture- Joint venture is a market entry strategy in which Amazon requires forming or
creating a new business or venturing with local business (Hollender, Zapkau and Schwens,
2017). This means that Amazon needs to develop joint venture with local e-commerce company
in the market it is entering.

 Advantage of this is that Amazon will be able to take advantage of knowledge and
resources of local company. In addition to this trust and image that local organisation
have can provide benefit to Amazon in its success in international market.
 Disadvantage of joint venture includes difficulty in operation because of cultural
differences and can cause dispute in organisations. In addition to this joint venture can
also reduce or limit flexibility.
Selection of market entry strategy significantly depends on type and nature of organisation and
on the basis of its nature Amazon can adopt ant of the above mentioned strategy to enter
international market.
LO3
Key arguments in the global vs. local debate
Global vs. local has is a very important basis of debate and some of the arguments for this debate
includes-
One of the important arguments in global vs local debate is the better option. This means that
while marketing for Amazon one of the very important considerations is which one option is
better for marketing. This means that different type of content and strategies for marketing are
used in US and audience in India is used to some other type of marketing strategy. This means
that a standardized global marketing approach cannot be successfully applied in every country
and market. Whereas a localised approach of marketing can contribute in success of organisation
in international market (Lopez-Vallejo, 2017). This means that for Amazon marketing in India
considering a localised approach is likely to succeed more compared to a standardized global
approach of marketing in India.
Element of language and culture bound creativity is another argument for global vs local debate.
As the case study of Amazon outline that in India Indian language internet users surpassed
English language internet users and required Amazon to develop a localised version of Amazon
application and website. On the other hand creativity of Amazon to connect with Indian sellers
using Amazon chai cart is also an example in which creativity is culture bound and Amazon had
to find localised solution for the problem.

How product, price, promotional and distribution approaches differs in variety of contexts
Marketing mix of Amazon is as follows-
Product- This is concerned with offerings of the business and being an online retailer Amazon
sells variety of goods including books, clothes, games, groceries and movies. Offerings of
Amazon also include its shopping application and in India Amazon changed its shopping app and
in order to ensure maximum usability.
Price- Amazon has adopted competitive price strategy. However in price strategy of Amazon
prices of Amazon are high in USA compared to India (Thabit and Raewf, 2018). This means that
including Amazon Prime membership and subscription for audible gold membership Amazon
have reduced its rise significantly from prices in USA. The reason behind reducing prices is to
attract Indian customers and the difference is significant. For example annual Prime membership
in India is available at approximately $14 USD whereas the similar cost around $119 USD in
USA.
Promotion- Amazon adopts promotional strategy in which Amazon promotes through television
and web based advertisement and in addition to this billboards and smaller methods of
advertising are also adopted by Amazon. Concerned with promotion Amazon also changed its
strategy in India where it highly localised in its promotional content as well as have also adopted
some other strategies including custom domain name for India and Amazon chai cart.
Distribution- Distribution strategy is concerned with strategy through which Amazon distributes
its product to customers. Amazon uses a centralised the shipping platform that is known as
fulfilment by Amazon. Under this strategy sellers send their goods to Amazon warehouses and
charges fee to store, pack and shipped their products. Amazon also changed its distribution
strategy in India that includes fulfilment centres along with to India centric program that are
known as easy ship and seller flex. In easy ship Amazon picks up orders from sellers’ doorstep
and feeds them into fulfilment by Amazon channel. On the other hand in seller flex Amazon
provides training to sellers to help bring their warehousing practices to the level acceptable to
Amazon.

LO4
International marketing approaches organisation can adopt
Approaches refer to way in which organisations undertake and manage their international
marketing (Samiee, 2020). Mainly there are two approaches to undertake and manage
international marketing that Amazon can utilise and these approaches are-
Centralised approach of international marketing- Centralised approach to international
marketing is one in which marketing team at headquarters make most of the marketing decisions
and plan and execute them internationally. This approach of international marketing is used
when marketing department of Amazon is highly competent and able to work in international
markets. In addition to this centralised approach of international marketing is also useful when
organisations operate in international market through direct exporting and have own in-country
subsidiaries. In centralised marketing Amazon will be able to carry a positive image of country
of origin effect.
Decentralised approach of international marketing- Decentralized approach to international
marketing is concerned with planning and designing of marketing in the country is where
international marketing is being executed. This means that when Amazon operates in India as
international market its marketing planning and execution will take place in India independently
from head quarter. This approach is applicable when international marketing of Amazon requires
significant localisation in order to ensure its success in international market. This is also useful
when home country and host country have significant different culture.
Home and international orientation and ways to assess competitors
Market orientation is concerned with approach that Amazon uses to dictate all its
practices and processes within organisation.
Home orientation also known as ethnocentric orientation is one in which Amazon develops
products to satisfy needs of home country customers (Fleischmann and Fleischmann, 2019). In
this marketing mix is also developed on the basis of requirement and suitability of home country
customers. This means that Amazon develops marketing mix for customers of USA.

Polycentric approach is one in which Amazon develops products and marketing mix to suit
requirements of different countries’ customers.
Regiocentric approach involves considering whole world as single market and producing
products accordingly.
Ways to assess competitors
Strategic group analysis- This way of competitors’ analysis helps in understanding impact of
different strategic approaches and which competitors are close to Amazon (Jeong, Lee and Lim,
2019).
Growth share matrix- This matrix helps in analysing company’s portfolio and place it against
competitive landscape of industry.
Perceptual mapping- This helps in understanding perception for product compared to
competitors of the company. This enables Amazon to develop strategies through which
perception can be improved or improved perception can be used for benefit.
CONCLUSION
On the basis of above discussion it can be concluded that there are several reasons that a
company visit to market internationally and several opportunities and challenges are provided by
international marketing. However effective understanding of criteria to consider while entering
international market can help up in dealing with challenges. Report also discussed key arguments
in global vs local debate as well as different approaches for marketing mix in variety of context.

REFERENCES
Books and Journals
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international marketing perspective. International Marketing Review.
Fleischmann, A.C. and Fleischmann, M., 2019. International orientation of professional football
beyond Europe. Sport, Business and Management: An International Journal.
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and
product adaptation. International Business Review. 26(2). pp.250-263.
Jeong, C.Y., Lee, S.Y.T. and Lim, J.H., 2019. Information security breaches and IT security
investments: Impacts on competitors. Information & Management, 56(5), pp.681-695.
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digital era: opportunities, challenges, and research directions. International Marketing
Review.
Lopez-Vallejo, M., 2017. In the Frontier of the Global-Local Debate: Provision of Public Goods
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Sheth, J.N., 2020. Borderless media: Rethinking international marketing. Journal of
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Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Online
Anastasia Belyh. 2019. Factors to Consider For International Marketing. [Online]. Available
Through: <https://www.cleverism.com/factors-to-consider-for-international-
marketing/>.
Process to select International market. 2019. [Online]. Available Through:
<https://howtoexportimport.com/Process-to-select-International-market-4576.aspx>.