International Market Entry Strategies and Benefits

This assignment is focused on the evaluation of international market entry strategies and their benefits. It requires students to analyze the advantages and disadvantages of different market entry methods, such as exporting, licensing, franchising, joint ventures, and foreign direct investment. The assignment also involves identifying the benefits that a company can gather through global expansion, including high market share, large profitability, and economies of scale. Students are expected to use references from books and journals, as well as online resources, to support their arguments.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Scope and key concepts of international marketing..........................................................3
P2 Rationality about expansion in international market and various route to market............5
M1evaluation of challenges and opportunities faced by organisation in internation market.6
TASK 2............................................................................................................................................6
P3 Consideration of the key criteria and selection process while enter into international
market.....................................................................................................................................6
P4 Different market entry strategies including their advantages and disadvantages.............8
M2 Market evaluation criteria and entry strategies and recommendations............................9
D1 critical evaluation of the international market and marketing strategies to respond critical
market situation....................................................................................................................10
TASK 3..........................................................................................................................................10
P5 Key arguments in the local and global debate.................................................................10
P6 Difference between different approaches of product, price, pricing, promotional and
distribution............................................................................................................................11
M3 Evaluation of circumstances in which clients adopt global and local approach............12
M4 Determine and articulate in details how to adopt marketing mix in international market12
D2 Critical evaluation of how the marketing mix is applied to range of international context 12
TASK 4..........................................................................................................................................12
P7 Analysis of the various international marketing approaches..........................................12
P8 Comparison of home and international orientation and ways to assess competitors......14
M5 various marketing approaches and competitor analysis and recommendations............14
D3 Recommendations on how organisation should be structured to maximise an international
context..................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
International marketing is an important concept which includes the application of
marketing principles to expand the business activities in new country. It provides an opportunity
regarding satisfaction of various needs and wants of the customers who are residing across the
national and international borders. For small companies, marketing is must to improve their sales
and profitability. It helps to spread awareness among the customers about the new offers which
are provided by organisation. Some of the major reasons which motivate the organisation to
expand their operations globally are attaining economies of scale, high profit opportunities in
domestic and global market, huge market share, untapped international market etc. Rowlinson
Knitwear is small organisation which provides school and corporate wear. The main aim of
organisation is to expand their operations in international market (Wilson and et.al., 2012).
The present report explains about scope and key concepts of international marketing,
various routes adopted by organisation to reach market, consideration of the key criteria and
selection process to enter into international market, different market entry strategies including
their advantages and disadvantages and key arguments in global as well as local debate. Also,
difference between product, price, promotion and distribution approach in variety of
international contexts, international marketing approaches which can be adopted by organisation
and ways to assess competitors which are present in market have been discussed.
TASK 1
P1 Scope and key concepts of international marketing
Overview of Rowlinson Knitwear
It is a small clothing organisation which provides their products and services in UK. The
important two stream products provided includes school and corporate wear. The main belief of
organisation is to adopt transparent and ethical approaches to business. The main aim of
organisation is to provide comprehensive customer care programme. The factories which are
indulged in production process fully comply all the rules and regulations regarding health and
safety, child/labour etc. They provide their clothes at fair pricing in UK market. It is considered
as developed nation where economic situation is better to grow their business activities
effectively.
Concept of International marketing

International marketing is an important concept which helps to grow their business across
international borders through application of different market entry approaches. It is also
considered as multinational process of planning and deciding about prices, promotional strategies
and distribution of goods, ideas and services for satisfaction of different needs of customers and
attainment of common goals of organisation. Rowlinson Knitwear decided to expand their
operations in Spain to improve their market share and build good brand image in between the
customers and competitors (Yang, Su and Fam, 2012). The different concepts of international
marketing which are need to oversee by the marketing manger to achieve success in their
operations are mentioned below:
 Study of the behaviour of customers of Spain
 Production of new clothing lines which helps in satisfaction of customers’ needs and
preferences
 Set affordable prices as per their level of income
 Establishment of effective distribution channels
 Adoption of promotional strategies which helps to inform market about their offers
 Good after sales services
Scope of International marketing
It provides the information regarding the different options which are available in front of
the management of Rowlinson for expansion of their operations in Spain. The different mediums
regarding globalisation of organisation are mentioned below:
Exports: It is one of the easiest way to enter into the new market. It can be of two types
direct or indirect. Under indirect export, trading companies provides the functions regarding
buying and selling of products in abroad on the behalf of such companies. But in the option of
direct exports, organisation has the ability about self managing their products and services
abroad through adoption of following methods:
 Setting of Domestic based Export department
 Overseas sales branch
 Sales representatives
 Distributors or agents

Joint ventures: It is another method which helps to grow abroad by joining the hands
with other companies which are based in such country. This helps to attract the customers of
such company as well (MARKET ENTRY STRATEGIES. 2018).
Licensing and Franchising: Licensing is used by domestic companies to provide license
to foreign companies to manufacture the product as per their conditions and under brand name.
Under franchising, domestic organisations have higher control over their functions.
Strategic alliance: It is an agreement between the two parties to carry out operations to
accomplish their objectives. This is considered as legal partnership.
One of the best methods to expand operations in Spain for Rowlinson Knitwear is to use
the option of strategic alliance which is cost efficient and more effective method to grab the
attention of customers. Through application of this method large number of benefits are attained
by the organisation. It helps in improvement of sales, profitability, market share etc. (Zhou, Wu
and Barnes, 2012).
P2 Rationality about expansion in international market and various routes to market
It is an essential aspects for every new business to make selection of the most appropriate
strategies which are helpful to the company in going for international market. These marketing
strategies would be developed through various multinational companies at global level in
accordance to set a common brand platform for various products and brand of “Rowlinson
Knitwear” company. It have certain significant cost saving as primary advertising and
marketing campaign that would develop for making more profitable businesses. There are certain
essential aspects by which company wants to go for international market. Those are being
discussed underneath:
 Because of high population: This is one of the main reasons for companies to sell their
products to that place which is having maximum people. This would assist emerging
market as large economy in entire globe.
 High demand: Another reason for expanding business at international level is their
product demand. It is higher for foreign products even when they are accounted for
luxury products within an emerging market trends.
 Growth rate: Because of inflation which is adjusted from GDP for emerging market was
5.7% to 2.5% within the developed nations. The increase of emerging markets and FDI
(Foreign direct market) is still indicating positive sign of growth.

There are various types of routes to enter into the foreign market.
Direct exporting: It is one of the crucial aspects which are simpler to sell product
directly into international market. For examples, Rowlinson knitwear wants to sell products to
Spain, they need to provide their products into Spain stores and to look how it works.
Strategic alliance: This is particular concept of entry mode which represents co-
operative relationship among two or more than two independent organisations in order to
formulate to attain maximum advantages in order to create economic viability. They use to carry
uncertainties that are not able to manage in a contractual arrangement (Griffin and Pustay, 2012).
M1 Evaluation of challenges and opportunities faced by organisation in international market
Global organisations and business faces various types of challenges such as global
competition, threats of international product restrictions and regulatory requirements. Political
and cultural aspects are also major challenges which are to be faced by Rowlinson Knitwear
Company. Apart from it, there is a huge opportunity is found in international market subject as
introducing new concept and innovative ideas through the products. Presenting goods and
products in innovative ways. There are countless opportunities exist in global and international
market subject to enhance global market with in international market. Pricing, currency values,
customs duties and taxes are also some major challenges to be faced by Rowlinson Knitwear.
TASK 2
P3 Consideration of the key criteria and selection process while enter into international market
The international marketing entry evaluation process consists of five stage process and
their effective objective is to set standard which is helpful in global market that offers best
opportunities for their products or services to get better results for the country. Following are
certain steps that are being discussed regarding market entry.

Illustration 1: International market entry evaluation stages
(Source: Entry Evaluation Process, 2018)
Identification of nation: It is essential to make proper identification of that particular
nation which is more suitable for expanding their business operations (Wilson and et. al., 2012).
This can be done by making valuable analysis about potential markets of Spain. The section
would be based on various similarities can make easy for them to grab certain changes.
Preliminary screening: Under this particular stage, it would take maximum looks at
those nations which remain after undergoing preliminary screening (Yang, Su and Fam, 2012).
This will assist in determining more reliable market which can provide more growth
opportunities to the concerned businesses. By doing so, it will start calculating overall nature of
market entry costs.
In depth screening: All those countries need to oversee different factorsfeasible for
market entries. It is necessary that detailed information on the set target market is obtained in
order to make marketing decisions more appropriate (Malhotra, 2011).
Final selection: Managers would reflect planning goals and needs for matching in
country at the hand. The company can look at their close competitors or similar local companies
that are mainly entered into the market to get firmer costs in accordance to market entry.

Direct experience: Personal experience is more vital for the purpose of taking crucial
decisions. It helps the marketing managers is to use such information for making effective
decisions and attain objectives.
P4 Different market entry strategies including their advantages and disadvantages
There are many strategies are identified by the management of Rowlinson Knitwear for
entry into Spain market. Such different strategies are named as: Direct exporting, Strategic
alliance, Joint venture, licensing and franchising etc. All such methods have their different
advantages and disadvantages which are mentioned as follows:
Direct exporting
Advantages
 It helps in elimination of the intermediaries to attain higher profits
 Higher control over the operations provided by organisation in new country
 It helps in identification of the perfect segments of customers to which need to approach
effectively
Disadvantages
 It is more time consuming process which involves higher amount of cost. So, makes the
task of execution of plan more difficult for small organisation.
 It requires large number of employee for attraction of large customer base (Meissner,
2012).
 Difficult to build effective relation with customers without having any personal touch
Strategic alliance
Advantages
 Access to supplementary services: Joining hands with other organisation provides
opportunity to offer supplementary services to their customers
 Opportunity to reach new markets: Collaboration with other organisation brings
awareness among the customers about the new brand in market. So, it helps to use their
customer’s base and loyalty for expansion of their sales (Advantages and disadvantages
of buying a business, 2018).
Disadvantages

 Upholding Trust and Honesty: It is difficult for organisation to trust their new partner.
This will affect their foundation of partnership and creates lots of conflicts among the
parties.
 Lack of control: The organisation has not much control over the operations due to
having partnership with new partner. This affects their decision making power.
Joint venture- It is a commercial firm that undertaken jointly through two or more than two
different parties in order to achieve common objective. Under this two companies are work
together and focus on single aim.
Advantages
 Better resources: Joining hands with other organisation provides the opportunity
regarding the use of new techniques and methods. It helps in improvement of their
strength.
 New insights and expertise: Joint venture provides the opportunity to understand about
the factors which are present in new market and attain expertise in their different
operations (Paliwoda and Thomas, 2013).
Disadvantages
 Vague Objectives: There is presence of confusion among the objectives. Due to having
joint venture with other organisations, communication issues arise through which
objectives are not 100% clear.
 Flexibility can be restricted: Through joint venture with other organisation, flexibility
in organisational structure is reduced which affects their business transactions.
M2 Market evaluation criteria and entry strategies and recommendations
There are some essential aspects like marketing techniques which are used by
organisation while introducing organisation at international level. Various types of marketing
strategies are adopted by organisation such as licensing, franchising and direct exporting into
market which are used as the first instance and own experience. Joint ventures, buying a
company and turnkey projects are some essential aspects which are used as international
marketing techniques and strategies. Alliance international strategy is used by Rowlinson
Knitwear subject to introducing organisation at global market.

D1 Critical evaluation of the international market and marketing strategies to respond critical
market situation
Critical analysis of situations and circumstances is one of the essential aspects subject to
introducing organisation at international market. Deductive and inductive approaches are two
main research approaches which are used to critically analyse the complex situations of global
market. Deductive approach contains basis of explanation and allows the anticipation of
phenomena to control. This approach is based upon hypothesis to resolve issues which collects
types of information and data. Inductive approach indicates towards observation and approach
which is based upon observation of events. With the help of predetermined researchers uses
observed data and facts (Czinkotan and Ronkainen, 2013).
TASK 3
P5 Key arguments in the local and global debate
Different organisation performs their functions in various manners. It is the responsibility
upon the management of organisation is to understand the nature and develop proper strategies
which provide large support. Such supportive behaviour of manager provides the opportunity
regarding accomplishment of the objectives within stipulated period of time. To attain
sustainability in their operations, management need to focus on both local and global presence
which helps in determination of the factors which are present in both market. It is difficult to
provide functions at global comparatively to domestic level. But there is large number of
opportunities to earn higher profits. Differences between both aspects are mentioned as follows:
Global presence Local presence
Large numbers of growth opportunities are
available but there is presence of risk in
operations.
Opportunities in future are limited but there is
much stability in operations.

Need to identify the preferences and
requirements of new customers (Paliwoda and
Thomas, 2013). It helps in adoption of new
methods and techniques which bring
innovation in their existing products. So, more
chance to improve their sales
Less focus is given on market research and
identification of the customer preferences. It
affects their selling ability. But here one
advantage for organisation is easy to build
relation with customers.
The profit generating capacity of organisation
is high because higher support is provided by
the different individuals which are associated
with business project.
At domestic level, it is difficult to generate
large number of profits because traditional
methods of marketing are used. But large
numbers of opportunities are present to
improve their brand image and goodwill.
Among both of them, Rowlinson Knitwear business firm should use global presence and
this company will use this information at the time of conducting its business in an international
market. Through this given information, Rowlinson Knitwear organisation know about global
market and try to gain effective opportunities in order to make business successful.
P6 Difference between different approaches
To attain success in their international expansion, organisation is need to adopt different
approaches which are used at present in domestic market. Rowlinson Knitwear is small
organisation which provides their clothing products in UK market. It is developed nation where
external factors have positive impact upon the business operations. Spain is the emerging country
where the factors present in market are different. So, Rowlinson is need to adopt different
approaches of marketing regarding products, pricing, promotion and distribution. Evaluation of
the different approaches regarding international context is mentioned below:
 Product: To attain success in international market need to provide diversified products
which helps in attraction of customers of different segments. To capture new market
small organisations is need to innovate in their products and services which satisfies their
different needs. United Kingdom, Rowlinson serves the two kind of clothing lines which
are school and corporate wear. It helps to attraction of school going children's and
business personalities.

 Pricing: It is another approach which provides the opportunity to attain sustainability in
business. Management of Rowlinson is need research about the market and identifies the
behaviour of customers of Spain about their paying capacity. It provides the opportunity
regarding preparation of effective pricing policies which influence the behaviour of
customers to buy their product and build their brand image in United Kingdom (Douglas
and Samuel Craig, 2011).
 Promotion: It is one of the important strategy which includes the activities regarding
advertisement of products and spread awareness in between the customers. Rowlinson is
small organisation in United Kingdom and social media platform is one of the important
and cost efficient method which helps to advertise about products. This method has wide
spread among children's and business executives.
 Distribution: It is important concept of marketing which helps in distribution of the
products to their final customers. Rowlinson is decided to adopt the approach of strategic
alliance to provide their clothing line products in Spain. Establishment of effective
distribution channels helps in timely delivering of products.
M3 Evaluation of circumstances in which clients adopt global and local approach
In order to achieve core competence and effective management organisations are
adapting international marketing strategies for better formulation and understating. Approaches
and techniques are remain diverse as per global and international structure of organisation. Local
approaches is used to enhance the scope of business at domestic or local level whereas global
approach helps to explore operation and management at global level. These approaches assist
organisational structure towards sustainable development and growth.
M4 Determine and articulate in details how to adopt marketing mix in international market
Business entities adopt marketing mix to enhance the scope of organisation by analysing
business environment. This helps to set marketing objectives and aims for better forecasting and
assumption. All these aspects are considered as essential to elaborate the dimensions of global
aspects. It is required for Rowlinson that analyse the global business environment in major for
aspects such as product, place price and promotion. All these aspects are combine considered as
decision making tools (Evers, Andersson and Hannibal, 2012).

D2 Critical evaluation of how the marketing mix is applied to range of international context
There are some activities performed by organisation subject to implement marketing mix
with in the organisation such as analyse of markets and potential market, planning and
development of products and services that consumers wants distinctly identified in an effective
manner. International business environment, global culture, currency rates, import and export
policies are some factors which are analysed before implementing marketing mix approach.
TASK 4
P7 Analysis of the various international marketing approaches
Marketing- It is business and an action of selling as well as promoting of services or
goods consists market investigation along with advertised. It is management procedure by which
services and products mover from the concept to consumers. It consists coordination of different
components of marketing mix and these are product, price, place and promotion.
Global marketing is important process which includes about adjusting marketing
strategies of organisation as per the conditions which are present in other countries. It is full
process which includes planning, creating, positioning and promoting of products in global
market. There are many international marketing approaches which are adopted by Rowlinson.
Through which large number of benefits are gathered like improving the effectiveness of
products and services, strong competitive advantage, improvement of consumer awareness about
their brand, Reduction of cost and increase in their savings. The two different international
marketing approaches and their advantages and disadvantages are mentioned below:
Traditional marketing approach
It is one of the broad category which includes the different traditional methods of
marketing and advertising are print, broadcast, direct mail and telephone etc. Such methods of
marketing are important for small organisation to promotes their business at domestic level. One
of the major traditional approaches which adopted by Rowlinson is print and telephone. Print
includes about the advertisement of the business activities in paper form by use of newspapers,
magazines, newsletters etc. On the other hand, Telephone marketing includes delivering of sales
and messages over phone to provide information about their products and services to end
customers and influence their behaviour to buy their product ( Akaka, Vargo and Lusch, 2013).
Advantages and disadvantages

There are many advantages and disadvantages are gathered by Rowlinson through
application of these method of traditional marketing. The major advantages of traditional
methods is that they prove their importance in market in comparison to modern tools. Through
use of print media more information is provided to customers about the different activities of
organisation. It helps to build good relation with customers. But the disadvantage of these
methods that there is reach is limited in market. It doesn't provide the support in their objective
of future expansion of business activities in Spain (Advantages and disadvantages of buying a
business. 2018).
Modern marketing approaches
There is huge importance of modern marketing approaches for small organisation like
Rowlinson. It includes the modern tools like social media and websites which helps in
establishment of direct link. Such tools are cost efficient and having wide range in all over the
world. One of the major modern marketing tool which is used by the management of Rowlinson
is social media which helps to aware the individuals of Spain about their clothing lines.
Advantages and Disadvantages
The different benefits which are gathered through application of modern tools are
identification of the behaviour of customers, up gradation of consume status, improvement of
social welfare, development of healthy competition etc. The major disadvantage of this approach
is need to provide the training to employees to improve their efficiency regarding use of such
tools. It improves their production cost.
P8 Comparison of home and international orientation and ways to assess competitors
There is huge difference to conduct the business activities at home and international
level. To conduct their operational activities at international level needs to do proper research of
market. This helps in identification of the competitors which are present in market and the
strategies which are adopted by them. It contributes regarding designing of outline of strategies
and policies which helps in expansion of their sales in new country. For ex., Rowlinson is small
clothing organisation which main aim is to expand their operations in Spain to earn large number
of profits. It becomes difficult of the management of organisation is run their operations in
different culture. The major risks which are associated to run business at new place is uncertainty
in external factors and unknown culture. Marketing is the important concept which helps the
management of organisation to ascertain the views of customers about their products and make

improvements in their strategies. The different aspects of marketing on which need to provide
attention by the manager is quality of product, price, promotion and distribution. It helps to grab
the attention of of customers and influence their behaviour to buy their clothes.
In UK, Rowlinson uses traditional approach of marketing which helps in building good
relation with customers. But in Spain most the business organisation uses modern tools of
marketing which are cost efficient and wide range. So, it brings obligation upon the manager of
Rowlinson to identifies the importance of modern tools and use them for entry into new market.
It provides the opportunity regarding grab large number of opportunities in short span of time
(Berthon and et. al., 2012).
M5 various marketing approaches and competitor analysis and recommendations
Competitor analysis done by organisation to analyse the market position of competitors in
international level. Rowlinson Knitwear needs to analyse the behaviour of competitors which are
already dealing in same streams. Six step approach of analysing competitor analysis is
considered as effective approach which analyse in 6 steps. Identification of the current and
potential competition, determine five strategies areas which organisation is competitive, prepare
competitive matrix, separate matrices and reviewing the matrices to determine area for most
assailable.
D3 Recommendations on how organisation should be structured to maximise an international
context
It is advised that organisation should adopt innovative and creative ideas subject to
promoting goods and services at international level. Rowlinson needs to analyse favourable
conditions and circumstances to introduce products and services in international market.
Organisation needs to avoid multi functioning areas and remain focused upon its core
functions and fields (Cadogan, 2012).
CONCLUSION
It has been concluded from the above report that application of the international
marketing approaches provides the large number of opportunities to Rowlinson to expand their
operations in Spain effectively. There are many difficulties arise in the process of expansion
regarding cultural differences, existing competitors etc. The approaches of international
marketing help to bring awareness among the individuals of Spain about the clothing products

which are provided by the company. The marketing manager of Rowlinson needs to provide full
focus on the four determinants of marketing like: products, price, promotion and place to attain
success. The different benefits which are gathered by the organisation through such global
expansion are high market share, large profitability, economies of scale etc.