International Marketing: Scope, Concepts, and Entry Routes

This report provides an overview of international marketing and its key concepts. It discusses the scope of international marketing and the rationale for entering international markets. It also explores the differences between local and international marketing and the various entry routes for international markets. The report recommends the use of the direct route for entering international markets. The case study focuses on Davison Canners, a UK-based family-owned business looking to expand into Asian countries.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
An introduction to the organization and their current market................................................1
Sources to define international marketing and highlight the main differences to local
marketing................................................................................................................................1
LO 1.................................................................................................................................................3
Scope and key concepts of international marketing...............................................................3
Rationale for willingness to market internationally...............................................................4
Various international marketing entry routes and recommend any one.................................4
LO 2.................................................................................................................................................6
Key criteria and selection process that the company should use when considering which
international market to enter...................................................................................................6
Opportunities and challenges of going international..............................................................7
Market entry strategies...........................................................................................................8
Conclusion and Recommendation...................................................................................................9
LO3................................................................................................................................................10
Differences between global and local marketing.................................................................10
Key arguments in relation to local v/s global marketing......................................................11
Circumstances of adopting global or local approach, highlighting the implications...........11
Investigation of product, pricing, promotion and distribution approaches..........................11
Determine and articulate use of marketing mix in different international markets..............12
LO4................................................................................................................................................14
International marketing approaches.....................................................................................14
Home v/s international orientation along with ways to assess competitors.........................14
Conclusion and recommendations based on marketing mix and structure of organisation. 15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
International marketing is the planned and organised way of conducting operations
commercial activities in more than one country for earning profits and improves sales. In current
market, there is crucial role of marketing because many organisations are operating and they
want to attracts consumers for purchasing their product. When there is complete and relevant
information to consumers about product and services, then they can perform their actions in
better and effective manner (Choi and Yeniyurt, 2015). This report is based on Davison Canner
which is family owed business started 40 years ago. They make fruit, fruit compotes, jams and
bakery fillings, etc. with considering product quality. Managers of Davison Canners are thinking
to launch business in Asian countries, so managers want to frame a report which consist
components related international marketing such as routes and strategies of international
marketing, key concept of marketing, debate over local and international market, home and
international orientation, marketing mix of local market with comparison to international market,
etc.
MAIN BODY
An introduction to the organization and their current market
Davison Canners is UK based organization which is family owned business started in
1974 providing fruits, fruit components, jam, etc. This is the organization which provides better
option through maintaining quality of food items. They consider the requirements of consumers
and provide proper understanding about ways through which they can best utilize their resources.
They have their own farm oriented fruits, so they can easily focus on quality aspects. This
association get funding from HSBC through which they can renovate their business and enter in
beverages sector as well. This organization operates and services products to many retailers such
as Booths, ALDI, etc.
Sources to define international marketing and highlight the main differences to local marketing
As per view of Demangeot, Broderick and Craig, 2015 International marketing is the
process through which people came to know about different products and services by
organisation at international level. There is requirement of proper understanding about norms
and ethics which has to be followed by managers while they market products.
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According to Ghauri and et. al., 2016 International marketing is the planned and
organized procedure which assist in creating awareness about organization's presence. There is
use of different and innovative style of marketing through use of tools and techniques.
As managers of Davison Canners thinking to operate in Asian countries, then it is
important to consider their values and ethics so positive image can maintained in mind of
consumers. Hence this requires complete and specific knowledge about aspects which has to be
considered. When advertisements are convincing for people then there will positive impact on
sales of Davison Canners as well.
Difference
local marketing refers to planning and conducting marketing within specific geographic
boundaries. At local level, managers have knowledge about trends and it is easy to maintain
positive relations as compared to international marketing. It is important and Relevant to take
feedback from consumers because their needs and demands gets changed, hence managers of
Davison Canners have to analyze feedback in Asian countries. Local marketing requires less
funds as compared to international market because there is requirement of new and innovative
style of advertising. But in case of local marketing, communication can be performed at Davison
Canners outlet or stores as well. At international level, there are local competitors as well, so it is
tough to make good image in mind of consumers of Asian countries.
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LO 1
Scope and key concepts of international marketing
Davison canners is the organisation which is operating in local UK and managers wants
to operate in Asian countries, so they wants to analyse scope of international marketing with
which they can get proper benefit of it (Gillespie, 2015). Scope of international marketing of
Davison Canner is as under-
Exports and Imports- There are operation of countries with delivery good s to other
country and taking in products from other country. Managers of Davison Canner wants to
operate at international market with the help of which consumer can be served with best quality
products.
Third party location- Sometimes, there is situation, that one country can not trade with
another country due to some contractual reasons, then in this case organisation have to enter in
other country. International marketing is the planned and organised way of conducting
operations commercial activities in more than one country for earning profits and improves
sales. In current market, there is crucial role of marketing because many organisations are
operating and they want to attracts consumers for purchasing their product. When there is
complete and relevant information to consumers about product and services, then they can
perform their actions in better and effective manner (Choi and Yeniyurt, 2015). This report is
based on Davison Canner which is family owed business started 40 years ago. They make fruit,
fruit compotes, jams and bakery fillings, etc. with considering product quality. Managers of
Davison Canners are thinking to launch business in Asian countries, so managers want to frame a
report which consist components related international marketing such as routes and strategies of
international marketing, key concept of marketing, debate over local and international market,
home and international orientation, marketing mix of local market with comparison to
international market, etc.
There is difference in concept of internal marketing apart from local marketing which has
to be analysed by managers of Davison Canner through which they can access policies in better
and effective manner. Concept of international marketing is as under-
Export marketing- This is the way through which operation of organisation are
performed beyond geographical regions by requesting clients to contact them. This is the way
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through which operations can be performed at international level with understanding and taking
sponsorship from other association.
International business- There is involvement of huge money for export and import
duties, hence in this case there is another best concept i.e. international business. Under this
Davison Canner can operate in different countries with considering themselves as single unit
(Hoppner and Griffith, 2015).
Rationale for willingness to market internationally
Davison Canners is the association which provides fresh fruits and it's components such
as jam and situated in London UK providing best quality eatables. Davison Canners is awarded
with best food quality products due to which in local market they have good brand image and
they wants to expand in Asian countries. This can be possible by understanding proper and
systematic way to enter in market. With marketing is performed then it is easy to communicate
to consumers which assist in making business expansion. There is proper marketing strategy
through which satisfaction of potential stakeholders is possible. When managers of Davison
Canners operate in different countries than local consumers will also satisfied and this gives
increment in sales and profitability (Kotler and et. al., 2018).
It is clear that with entering in international market, there are many benefits such as more
scope of growth, possibilities of diversification of business, competition with local competitors,
etc. When organization gets growth opportunities then there is positive impact on financial status
of Davison Canners. This assist in keeping stakeholders satisfied. Market share of Davison
Canners. With international marketing not only Davison Canners gets benefits of it but country
and political parties also get advantage of it. Such as: there is good relations among countries and
scope for business for other companies also remain open.
Various international marketing entry routes and recommend any one
In order to perform operations at international market, there is requirement of some
specific route through which operations of Davison Canner at Asian countries is authentic and
relevant. There are some and ethical considerations which has to be performed in order to
understand trends which are taking place, so good image can be maintained at new market and
business expansion is also possible (Kraus and et. al., 2016). There are two routes for entering in
internation market i.e. direct and indirect route which are discussed as under-
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Direct Route: This is the way under which managers of Davison Canner can directly
communicate with consumers and make them aware about product and services which they are
offering. This is possible with sales personnel, printing catalogues, etc. which assist in
communicating with consumers and they can ask their quality at the same time. While using
direct routes it is easy for managers of Davison Canner to know demand of consumers and able
to communicate about new products to consumers. Exhibitions, small shops, fairs, etc. are used
as medium to enter in market through direct route.
Indirect Route: But in this case, there is no direct relations among consumers and
organisation and they are linked with interference of third party. This party have complete
information about products and services which they communicate to consumers but they charge
commission over sales. This third party includes Alliance partners, system integrators, etc. In
indirect routes to market, Davison Canner will be safe side because they do not have to market
and sale products to consumers. If there is decrement in sale, then third party is liable for it.
Hence there is no requirement of framing innovative marketing policies.
Out of the above mentioned information it is clear that best route is direct route because
in this there is direct contact because there is ease in understanding consumer demand and it is
easy to implement changes for organisational growth and development in new market.
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LO 2
Key criteria and selection process that the company should use when considering which
international market to enter
It is not easy for Davison Canner to operate in international market because of dynamic
external environment, so in this case it is important to analyse and select best way through which
Davison Canner can easily analyse and get over with it (Michaelidou and et. al., 2015). For
operating in internal market, managers of Davison Canner must have flexible and positive
working environment through which employees are ready to accept challenges which might
arise. Criteria for selecting international market are-
Proper infrastructure- If managers of Davison Canner are thinking to launch business in
Asian countries, then they must understand the requirement of proper infrastructure with the help
of which location and premises for operating operations can be planned. Hence this is major
factor which assist in successful running of operations by managers in order to manage and
operations.
Availability of resources- There is requirement of proper resources such as labour,
financial assistance, etc. with the help of operation can be performed in better end effective
manner. Cost of labour must be cheap, so they can hire for better position in international
market.
Change in legal norms- There are legal norms and regulation such as taxes, employment
laws, etc. which has complete and specific information about completing task. If managers of
Davison Canner dies not follow legal norms, then there is government interference if affects
brand image.
Nature of competition- There is much competition among local and foreign brands in
UK, so while selecting best market, nature of competition has to be selected. There is
requirement of evaluating and determining changes with Davison Canner can get better outcome
i.e. good sales and profits.
While there is specific selection process for particular geographical region which is
discussed as under-
Setting aims and objectives- Firstly managers of Davison Canner have to set objectives
for which they have to expand their business at international market. For instance, in case of
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Davison Canner, managers want to expand sales and profits, so they are thinking to expand
operations (Morschett, Schramm-Klein and Zentes, 2015).
Analysing options for selecting best option- After setting aims and objectives, it is
important to evaluate different operations where business can be set up. This provides
information through which many alternatives can be evaluated.
Preliminary screening- After analysing and evaluating options, preliminary screening
has to be done. This is the way through which options gets neglected because of some flaws.
Hence it is easy to sort different options.
Selection of best destination- After analysis different options, it is clear to managers of
Davison Canner to understand what has to be done which assist in expansion of business and
able to make changes in operations.
Testing- In order to perform operations properly, then testing is performed. This is the
way through which it is clear that which corrective actions have to be taken. In case of any flaws,
destination can be changed.
Launching of enterprise- After passing in testing stage, managers of Davison Canner
can launch their business in Asian countries.
Opportunities and challenges of going international
Working at international level is not that much easy, it is important and relevant for
managers of Davison Canner to understand and determine internal as well as external market
factors. This assist in evaluating policies properly and it is easy to implement it as well. Some
advantages and disadvantages faced by Davison Canner in operating at international level re as
under-
Opportunities
New Revenue Potential- With operating at international level, there is new scope of
operating business. It is easy for managers of Davison Canner to get more sales and profits.
Hence scope of business operations also increases.
Greater Access to Talent- With entering in new market, it will be easy for managers of
Davison Canner to grab new talent. They also came to know about new culture with the help of
which they can make familiar relations with them and improves sales.
Challenges
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High custom duties- While operating in other countries, there are some tax duties which
has to be followed by managers of Davison Canner under legal consideration. This makes
product expensive and sometimes consumers does not prefers to purchase it.
Currency exchange- There is difference in currency as well as currency rate due to
which commercial activities does not get affected. Cost and price of product will not be clear due
to which profits might affected and it is not easy to compete with local brands which are serving
at lower price.
Market entry strategies
For performing at international level, it is important for managers of Davison Canner to
analyse different sources of conducting operations and it is easy to evaluate ways through which
they can enter in new market (Rosson and Ford, 2016). There are different ways such as joint
venture, partnership is a venture capitalist, franchising licensing, collaboration, etc. with the help
of which organisation can expand their operations. When there is proper understanding about
different strategies and its pros and cons, then it is easy for managers of Davison Canner to judge
which is best. Some of the strategies are discussed as under-
Partnership- This is the agreement between two organisations in which one is from
native place. There is requirement of resources for performing operations at international level,
so with the help of this agreement, an party have resources and other have funds, so they are
working for achieving same objective. Advantage of this method is there is proper agreement
which shows sharing of profit, loss, capital, income and expenditure, so there is less possibilities
of conflict. While disadvantage of this method is sometimes, there is dominance of their party
because of their local company and they have more privileges then other.
Export- This is the procedure through which Davison Canner can operate in other
country by selling their products in other country. There are some tariff duties which has to be
paid by managers of Davison Canner as their jam and other fruit components are offered in other
country. There is an advantage if this method i.e. product is served without physical evidence in
country with the help of which organisation can operate in external country as well. While
disadvantage of this method is there is high tax rates and duties due to which cost and price of
products gets high.
Franchising- This is the marketing concept which is used by organisation for the purpose
of expansion. In this type of expansion, organisation provides right to other party to work on
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their behalf in other country. This is the best way through which organisation can expand but
understanding proper policies associated with it. There is compulsory registration under which
franchisee have to pay some specified percentage of their sales to Davison Canner. Advantage of
franchising is there is increment in market share because third party is working in organisation.
There will good relations with other foreign suppliers as well because franchisee is working with
brand name of franchisor. While disadvantage is this is costly approach for the purpose of
expansion. If services offered by franchisee is not appropriate then there is bad impression
among consumers about Davison Canner.
Conclusion and Recommendation
From the above discussion, it is clear that in order to conduct operations at international
level, then marketing have to done in better and effective manner. In order to expand business,
expansion route used is direct because this gives actual and relevant information. Best entry
route for Davison Canner is partnership because there is legal understanding among two parties
and hence it is easy to judge and understand the requirements of specific nation through in near
future operations are performed properly. It is important to understand the proper process
through which operations are performed by analysing resources availability. If there is any risk
in expansion, then it is important to plan strategy with which it is easy to expand.
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LO3
Differences between global and local marketing
BASIS LOCAL MARKETING GLOBAL MARKETING
Size of
operations
This is the way through which
organisation can operate in specified
country.
But in this case association can operate
in any country, there is no trade
barriers.
Risk
assessment
There is low risk as compared to
international marketing.
While there is more risk because of
changing trends and consumer demand
due to which managers have to
consider external market more.
Financial
Resources
In local marketing, there is
requirement of less financial
resources because operations are
performed within specified
geographical region.
While in this case there is requirement
of more financial resources, hence it is
important to plan sources from where
funds are raised (Souchon and et. al.,
2016).
Complexity of
operations
In local market, there is not
complexity because managers of
Davison Canner have knowledge
about trends and legal factors.
While in international marketing,
there is complexity because
sometimes, workers does not have
knowledge about their roles and
responsibilities.
Consumer
perception
There is positive perception of
consumers regarding products
offered by Davison Canner because
they are satisfied by quality and loyal
towards it.
While in international market,
perception of consumer difference
because there are many other rand
which is dealing in his sector and
sometimes due to improper marketing
consumer cannot make positive brand.
Example In order to marketing in local market
of UK, managers of Davison Canner
can use television advertisements,
While at international level, there is
requirement of campaign, sponsorships
etc. with the help of which people get
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hoarding, etc. because are aware
about brands.
knowledge.
Key arguments in relation to local v/s global marketing
There is difference in working style at international and local market because of scope of
working. In case of any issue at international market, then it is tough to deal with it because of
less knowledge, while if some issue arise at national level, then it is easy to deal with. As per
some view of some authors, there is increment in scope of international marketing but at the
same time risk and requirement of funds also increase. Hence in this case managers have to
evaluate and analyse external market more thoroughly. As there is requirement of understanding
external market, so legal personnel is required from Asian countries. At foreign market, there is
requirement of proper resources and infrastructure with the help of which operations can be
performed properly (Sun, Paswan and Tieslau, 2016).
While some people says Athena operating in national market is more beneficial because
there is less competition and managers of Davison Canner can enter in satisfy consumer demand
by analysis and understanding it. there is less possibilities of negative impact because managers
have complete knowledge about legal, ethical factors. Some authors have view that financial
resources are easily available in national market, so smooth running of business is possible.
While resources such as fruits are also easily available with appropriate quality, hence it is easy
to raise sales and profits in local market.
Circumstances of adopting global or local approach, highlighting the implications
In order to accept local or global approach, it is important to understand pros and cons
over business organisation of it. If client accepts global concept, then it is essential to have
proper knowledge about understanding and determining proper changes associated with it. As
there are many changes in external market, then it is essential for managers to understand and
determine policies in appropriate manner. If these are not considered, then it affects operations
are not performed in specified manner. There are possibilities that frequent change in services
are required. While if local approach is selected by client, then it will be easy for managers for
operating but at the same time, they have to determine ways through which satisfactory services
can be provided. There will more competition, but as culture, value, trends are known by client,
so it is easy to deal with it.
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Investigation of product, pricing, promotion and distribution approaches
While entering in new market, there is requirement of making operations in effective and
appropriate manner, so in this case it is important to analyse changes which are taking place in
local and international level. Product. Price, place, promotion are discussed as under on the basis
of national and international market.
Element London, UK International Markets (Asian
Countries)
PRODUCT Davison Canner services fruits,
jam and started dealing in
beverages as well. They have their
own farms, so quality of fruits is
also up to the mark.
While managers of Davison Canner
are thinking to operate in Asian
countries, then they have to enter
with specified product i.e. fruits and
jam in which they excel.
PRICE Pricing strategy in local market of
UK will be competitive because
there are many other organisations
which are dealing.
While in case of international market,
they have price skimming strategy
will be better through which brand
image can be improved (Surugiu. and
Surugiu, 2015).
PROMOTION In local market, Davison Canner
can promote their products with
personal market, newspaper
advertisement, hoarding, etc.
While in case of international market
of Asian countries, sponsorship,
brand ambassadors, etc. have to be
considered.
DISTRIBUTION In local market, distribution can be
performed with the help of online
sources and outlets in UK market.
While in case of international market,
there must be use of stalls at concert,
fairs, etc. with the help of testing of
new taste is possible.
Determine and articulate use of marketing mix in different international markets
With the help of marketing mix, there will complete and specific knowledge about
product, pricing strategy and place for expansion. There is proper understanding about changes
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which is relevant and specific for understanding changes. There is use of complete and specific
changes with the help of which people are able to determine properly. With understanding and
evaluating policies about conducting operations, then it will be easy for managers to determine
and understand the external market. There is requirement of analysing different markets through
which operations are performed in appropriate and specific manner.
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LO4
International marketing approaches
Some marketing approaches are among which Davison Canner can adopt are discussed as
under-
Multinational: This is the approach, under which organisation have operations in
different countries where they are operating as independent organisation. Hence there is no
interrelation among two outlets at distant site. Example: Burger King.
Transnational: This is the approach under which operations of an association is tough
and sometimes not able to understand but still operating in many locations or providing services.
Under this approach, there is no specified country as national or local market. Example:
CADBURY.
Global: as per this approach, organisation in operating in different countries but they
have single norms which has to be followed. This provides consumers uniformity in products
and services. Example: TESCO PLC.
Home v/s international orientation along with ways to assess competitors
Home orientation is the mentality in the mind of management of organisation under
which they have view that if particular product is famous in current local market, then it will
famous in foreign market too (Tan and Sousa, 2015). This might affects sales in new market
because there is no new innovative idea in mind of managers of Davison Canner.
Implication:
With this mindset, there is correlation among local and international market, so it is easy
to access both the markets.
Ways to assess competitors:
This is the way through which operations of organisation are not so affected because of
competitors because mangers thinks that they does not have relevant knowledge about their
product. It is easy to get over with competitors because in order to understand changes.
International orientation is the way through which employees analysis the difference
between national and international market with the help of which they can access changes in
positive and relevant manner. There is requirement of analysis of complete and specific changes
which are taking place in market.
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Implication:
With the help of this orientation, there will more benefits to Davison Canner so they can
access and perform their operations in better and effective manner.
Ways to assess competitors:
As managers of Davison Canner focus on understanding changes and make policies as
per change in working environment. There is more threat to Davison Canner from competitors,
so it is important to analyse it (Vellas, 2016).
Conclusion and recommendations based on marketing mix and structure of organisation
From the above discussion, it is clear that there is difference in marketing style at national
and international level. It is important for managers to understand policies with which they can
access positive outcome with it. There is difference in views of people regarding national and
international marketing. It is recommended that while promoting products and services in
international market, then it is easy for managing and maintaining positive image in industry.
Fairs, sponsorship, etc. are the ways through which promotional in foreign country is easy. It is
important that managers must have to understand changes which are taking place in market. It is
essential to understand policies with the help of which people at international market can
communicate. It is recommended that with using skimming pricing strategy, consumer retention
is easy in foreign market.
CONCLUSION
From the above information, it is clear that there is difference in marketing strategy at
international level as compared to local market. Manager have to analyse changes in proper
manner through which possibilities of failure is less. In order to expand in market direct route
must be considered with global approach. There is proper understanding about changes which
are taking place. There is specific and relevant changes such as promotion tools, pricing
strategies, etc. different as per geographical region. Apart from this, it is important to plan
operations in appropriate manner through which positive results can be achieved. There are some
keep areas which has to be considered while selecting destination such as availability of
resources, infrastructure, etc. through which continuation of services can be maintained. At last
marketing mix is done of UK in comparison to international market so difference in product,
pricing strategy, promotional tools are studied.
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Online
What is the Scope of International Marketing. 2019. [Online]. Available through:<
https://www.bms.co.in/what-is-the-scope-of-international-marketing/>.
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