International Marketing

https://cecos.com/moodle/pluginfile.php/7946/mod_resource/content/1/AB%20RP%20Unit%2011%20HND%20Jan%202020%20CECOS_Pearson.docx

International Marketing

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Scope and concepts of international marketing...........................................................................1
Evaluate various ways the rational behind the company to go international..............................3
Criteria and procedure for entering into global market...............................................................3
Market entry strategies................................................................................................................5
Task 2 Covered in PPT....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
` International marketing is defined as the process of application of tactics and procedures
of marketing of product among the different countries (Ayuso and Navarrete‐Báez, 2018). In
other words, this involve the method of tapping into foreign market in order to gain maximum
base as well as to improve the overall operations of business activities which is operating at a
domestic level. This report is based on Rowlinson Knitwear which is situated in UK. It has wide
varieties of merchandise such as corporate wear and school garments among the clients so as to
accelerate more sales as it ensures quality specification which in turn improves the overall
productivity. This report is divided into two tasks. The first task covers scope and rationale for a
business enterprise to go for globally. This also includes various modes of marketing entry as
well as the selection process to enter the market at an international level. The second task
comprises of marketing mix plan and comparison of home and international orientation.
Main Body
Task 1.
Scope and concepts of international marketing
International marketing is the method of applying various marketing principles and
aspects of marketing that focus on meeting the needs and expectations of clients from different
parts of the world (Bianchi, 2016). In other words, it is understood as the process of business
activities and procedures which involve preparation of strategy that help in accomplishment of
task within limited period of time. It also involves buying and selling of merchandise or services
across the boundaries of the countries which aims to generate greater sales over a marketplace.
Scope
In today’s era, the scope of international marketing is growing rapidly which provide an
enormous opportunity to create more awareness about global environment within corporate
world. The several concepts are given beneath:
Contractual Agreement: It involve the consideration of two parties under which one
party agree to expand their business beyond the domestic boundaries which aids the firm in
accelerating the market share. The manager of Rowlinson Knitwear emphasises on generating
more revenue by capturing new market segments through strategic alliance which involve the
signing of contract between the manager as well as international partners.
1

Fully owned production: In this, the owner of firm emphasises on capturing the whole
own production unit at a global level wherever it wants to expand its operations (Cameron,
2017). The top manager of Rowlinson Knitwear could plan to introduce its production unit at a
global level but at the same time it requires huge sum of funds which difficult for SMEs to
operate at global level. This would not be a suitable option for the respective firm as it requires
more funds.
Concepts
With reference to Rowlinson Knitwear, various concepts that are interconnected with
international marketing are prescribed as follows:
Domestic marketing: This emphasise the marketing activities to be taken place at an
international level and is not intended to expand the market in an international level. Being
operating at a small scale, the manager of Rowlinson Knitwear would not cover the large market
due to the reason of limited investment and also it requires large pool of resources.
International trade: This involve the process of transfer of ownership and possession of
goods or services between the boundaries of nations. This provide assistance to firm to acquire
knowledge and necessary skills as well as exchange of currency and balance of payment takes
place. The manager of Rowlinson Knitwear could expand its market which help in rendering an
expertise knowledge and resources as well as availability of advanced technology which help in
conducting fast operations of a business.
Comparison between local and international marketing
Local marketing considers the execution of marketing strategy within the geographical
boundaries of a nations while international marketing emphasises on capturing more and more
market beyond the nation boundaries of country (Czakon and Czernek, 2016). The former has a
great knowledge of taste and preference of customers and the culture and tradition followed in
that respective place while the latter conduct research and development to get the knowledge of
culture and tradition to be followed at a global level. The companies in local market generally
prefer advertisement that incur less cost such as print media like newspapers while the
international marketing require huge sum on advertisement like digital and social media
marketing and other campaigns to create awareness among the customers at a global level.
2

Evaluate various ways the rational behind the company to go international
Rowlinson Knitwear is well known brand in UK that deal with manufacturing of school
uniforms and corporate wear. It provides quality products among their clients in order to
generate maximum satisfaction of clients across the globe. The respective firm is planning to
conduct its business activities at a global level which could improve the financial position by
maximising the share value and resources as well as expertise knowledge which facilitates
smooth flow of activities and thus generates multiple sources of revenue which in turn
accelerates the profitability ratio of the company.
Opportunity
The major opportunity which could be faced by Rowlinson Knitwear by tapping into
international market are given below:
Infrastructure facilities: This is most crucial factor that it involves transportation,
communication facilities and railways that help in promoting the economic development of the
country (Hartsfield, Johansen and Knight, 2017). While making the business at an international
level, this provide an opportunity to Rowlinson Knitwear to facilitate fast movement of
merchandise among the nations and thus avail an excellent infrastructure facility which allows to
gain maximum exposure across the globe.
Efficient workforce: The respective firm gets trained staff which help in executing the
operations of a business in a well-defined manner. They work with zeal and render an expert
advice which help the business entity to run the business in a smooth and efficient manner.
Challenges
Different laws and regulation: This involve patent, copyright, trademarks and other
intellectual rights. The manager of Rowlinson Knitwear has to consider several laws and
regulations which affect the overall operations has it has major implications which adversely
affect the performance of corporations. This is greater threat as it is difficult for small enterprises
which require formalities which is not easy task.
Criteria and procedure for entering into global market
In the context of Rowlinson Knitwear, the steps of selection procedure are prescribed
below:
Objectives of international marketing: This is the first and foremast step in which
company has certain objectives to enter into a foreign marketplace. Setting a goal is necessary
3

for the SME like Rowlinson Knitwear so that it can make a relevant planning regarding its
expansion.
Selection Parameters: Rowlinson Knitwear has to consider several necessities while
entering into a global market such as nature of competitors, availability of raw materials and
labour and other factors so that it could gain a significant position within a marketplace.
Preliminary screening: It is regarded as an elimination round and the market has to
consider several factors to make entry into an international market such as population size, their
preferences and expectations, market structure, per capita income and so on (Lu, Scholz and
Nguyen, 2018). This help the respective firm to make a quick decision while making business
global.
Analysis: After conducting screening, the manager of concerned firm would make a list of
selected market and analyse the terms and conditions of market operating in a foreign country. It
makes decision regarding the cost, sales and profitability by making a proper evaluation which is
possible by conducting an extensive research.
Testing: The senior authority of Rowlinson Knitwear would conduct trial operations in a
marketplace as major emphasis is on collecting responses and gaining an insight attitude of
customers (Yang and Gabrielsson, 2018).
Commercial Production: Once the company gets positive feedback while testing,
Rowlinson Knitwear would carry their own production unit in accordance of chosen international
country.
Key Criteria
The various criteria for entering into foreign country are showcased below:
Best infrastructure amenities: The market is selected on the basis of availability of adequate
infrastructure facilities so that manufacturing of garments could in a ongoing manner without
occurring and shortage of raw materials.
Advancement of technology: The manager of Rowlinson Knitwear should make
selection on the basis of availability of technology as it helps in conducting fast operations and
determine the effectiveness and efficiency in a marketplace.
Rules and regulations: It is essential for the manager to consider the laws and
legislations while making the business at a global level. It has to abide all procedures and code of
conduct which bring transparency and accountability in an efficient manner.
4

Market entry strategies
There are several modes of tapping into an international market such as licensing,
franchising and many more as it helps the company to gain large access of capital and resources
and help the company to achieve a rivalry edge over a marketplace. With reference to Rowlinson
Knitwear, the same is presented as follows:
Direct exporting: This involve the process of acquiring merchandise directly from the
manufacturing department which decrease the cost of production. Rowlinson Knitwear saves
cost as it purchases the raw materials from the operational department in bulk quantity which
save cost.
Advantages: This help the company to generate more profitability ratio and boost the
sales within a market.
Disadvantages: One of the greatest drawbacks is that it is more reliable and dependable
on foreign country which affect the overall performance.
Franchising: This aids the franchisee to generate a brand name and some authorities to
other party to expand the operations of a business (Perraton, 2019). This provide assistance to
Rowlinson Knitwear to expand their operations by selling the merchandise or services by using
intellectual rights.
Advantages: The chance of success rate is high and generate maximum revenue and
profitability and also it provides the facility to train an effective staff which in turn render a
growth towards the business.
Disadvantages: It is regarded as expensive and time-consuming method which possess
difficult for SME like Rowlinson Knitwear to make business globally.
Licensing: It involve the agreement between two parties in which one authorise the grant
of permission to seek its business at an international level (Samiee and Chirapanda, 2019). The
manager of respective firm would acquire it for expansion of business at an international level as
it aids in reaching new customers.
Advantages: This provide to be beneficial to enter at a global market which provide a
rivalry edge and increase the exposure within a marketplace.
Disadvantages: There is chances of mismanagement and possess a big threat for piracy
and intellectual rights that affect the overall performance and reduce the reputation of company.
5

On the basis of above strategies, Rowlinson Knitwear would adopt Franchising as an
appropriate strategy due to the reason that it helps in expansion, diversification and
modernisation of a business at a global level which provide assistance in gaining maximum
exposure around the world. Also, they enjoy greater economy of scale and create a positive
reputation within a market.
Task 2 Covered in PPT
CONCLUSION
From the above report, it can be comprehended that entering into foreign market provide
a greater exposure to the company which help small enterprise to gain feasibility and exposure in
different parts of the country. It has been analysed that tapping into new market would render a
vast opportunity to SMEs to grow through various modes of entry options such as franchising,
licensing and exporting as it helps in gaining competitive position. The stages of selection of
country as well as key criteria are also analysed in this report so as to cover maximum market.
various elements of marketing mix plus comparison of home and international orientation is
discovered in this report.
6

REFERENCES
Books and Journals
Ayuso, S. and Navarrete‐Báez, F.E., 2018. How does entrepreneurial and international
orientation influence SMEs' commitment to sustainable development? Empirical
evidence from Spain and Mexico. Corporate Social Responsibility and Environmental
Management. 25(1). pp.80-94.
7

Bianchi, A., 2016. International law theories: an inquiry into different ways of thinking. Oxford
University Press.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
Christofi, M., Leonidou, E. and Vrontis, D., 2017. Marketing research on mergers and
acquisitions: a systematic review and future directions. International Marketing Review.
Czakon, W. and Czernek, K., 2016. The role of trust-building mechanisms in entering into
network coopetition: The case of tourism networks in Poland. Industrial Marketing
Management. 57. pp.64-74.
Hartsfield, S., Johansen, D. and Knight, G., 2017. Entrepreneurial orientation, strategy, and
marketing capabilities in the performance of born global firms. International Business:
Research, Teaching, and Practice. 2(1). pp.12-38.
Holtbrügge, D. and Berning, S.C., 2018. Market entry strategies and performance of Chinese
firms in Germany: The moderating effect of home government support. Management
International Review, 58(1), pp.147-170.
Lu, V.N., Scholz, B. and Nguyen, L.T., 2018. Work integrated learning in international
marketing: Student insights. Australasian Marketing Journal (AMJ). 26(2). pp.132-139.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Schmid, S., Grosche, P. and Mayrhofer, U., 2016. Configuration and coordination of
international marketing activities. International Business Review. 25(2). pp.535-547.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
8