Analyse the Scope and Key Concepts of International Marketing

LO1 DEMONSTRATE AN UNDERSTANDING OF HOW MARKETING
CONTRIBUTES TO BUSINESS STRATEGIES IN AN INTERNATIONAL
CONTEXT.
P1 Analyse the scope and key concepts of international marketing.
The scope of international marketing mainly includes the export of cargo and services in
overseas markets. In addition to exporting goods and services, exporters also engage in
various activities. In short, the International Marketing Department conducts marketing
activities in more than one country. It is often referred to as global marketing, which means
designing a marketing mix (i.e. products, prices, locations, promotions) on a global scale and
customizing it according to the preferences of different nationalities.
P2 Explain the rationale for an organisation to want to market internationally and
describe the various routes to market they can adopt.

Companies go international because they need to develop or expand their business. the
advantages of entering the international market include generating more revenue, competing
for brand spanking new sales, investment opportunities, diversification, reducing costs and
recruiting new talent. Going international may be a strategy that's suffering from many
factors and is typically implemented over time. Sometimes the govt will incentivize
companies to enter the domestic market to create their own economy. When considering
entering the international market, some important strategic and tactical decisions got to be
made. Exports, joint ventures, direct investment, franchising, licensing and various other sorts
of strategic alliances can all be considered models for market entry. Each entry method has its
own advantages and drawbacks , and solves problems like cost, control, speed to plug , legal
barriers, and cultural barriers with different efficiencies. First, the licensor may provide its
products, services, brand and/or technology to the licensee through the agreement. this might
be a robust win-win arrangement for both parties and may be a relatively common practice in
international business. Next, In franchising, organizations can prefer to grant entrepreneurs or
local companies access to their brands, trademarks, and products.Under this arrangement, the
franchisee will bear most of the risks of opening a replacement location, while gaining the
benefits of the established name and operating process. Franchisees also will often provide
product training, advertising and help.
M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING

INTERNATIONALLY PRESENTS TO AN ORGANISATION.
There are 5 opportunities of marketing internationally presented to an organisation is
exporting, licensing, joint ventures, direct investment and trade intermediaries. First,
exporting refers to the transportation of goods produced in one country to another country.
Exporting is a low-risk strategy. There are several reasons why the company is attractive.
First, mature products in the domestic market may find new growth opportunities overseas.
Second, some companies have found that exporting existing products instead of developing
new products is less risky and more profitable. Third, companies facing seasonal domestic
demand may choose to sell products in foreign markets to balance seasonal demand in their
income streams. Finally, some companies may export because there is less competition
overseas. Next, according to the license agreement, the company provides products to the
foreign company (licensee) by granting the foreign company the right to use the
manufacturing process, brand name, patent or sales knowledge of its licensor. The licensee
gains a competitive advantage, while the licensor gains a cheap way to enter new markets.In
addition, if the licensee fails to successfully copy the licensed product, or the licensee
promotes the licensed product in an invalid manner, the brand image of the original product
may be damaged. Third, a joint venture is a partnership between domestic and foreign
companies. Both parties have invested capital, share ownership and control of the joint
venture. Typically, foreign partners provide expertise in new markets, business contacts, and
networks, and can access other domestic business elements, such as real estate and regulatory
compliance. Joint ventures require greater corporate commitment than other methods because
they are more risky and less flexible. Fourth is direct investment. Multinational organizations
can choose to invest directly in wholly-owned subsidiaries for large-scale production and
sales overseas. Contrary to the above input method, this input allows the company to directly
have manufacturing or sales subsidiaries overseas. Last is trade intermediaries. If the
company lacks the resources or expertise to enter foreign markets, it can hire trade
intermediaries that have the necessary contacts and relationships in these markets. These
entrepreneurial intermediaries usually buy products produced in the United States at a price
lower than the manufacturer's highest discount, and then resell them in overseas markets.
There are 5 challenges of marketing internationally presented to an organisation. The first
challenge we face is the slow growth of developed markets. The fact is that growth rates in
developed markets have slowed. However, international marketers must still remember that
despite the slow growth rate, these markets are still large markets, and all marketers need to
continue to target these markets. The second biggest challenge facing the world is the decline
in the growth rate of emerging markets. Despite the decline in growth rates in many emerging
markets, marketers need to remember that emerging markets will continue to grow at a faster
rate than developed markets. This is because its huge population and rising income levels
stimulate demand in these markets. Therefore, all international marketing organizations need
to look beyond the developed markets and focus their energy on all emerging markets. The
third key factor to remember is demographics. The populations of western developed markets
are aging, while the populations of emerging economies are young. Therefore, emerging
markets will remain important markets, and international marketing organizations will also

need to continue to focus on emerging markets. The fourth important factor is the increase in
competition and innovation. Companies in developed countries will be challenged by more
and more companies from emerging markets. Organizations that focus on innovation to
reduce costs or increase perceived benefits to customers will flourish. The last important
consideration is the increasing role of communication. As companies from all over the world
communicate with customers from all over the world, the role of communication will be
further enhanced.

LO2 EVALUATE ENTRY TO A SELECTION OF INTERNATIONAL MARKETS
AND DEFINE THE KEY SUCCESS FACTORS.
P3 Evaluate the key criteria and selection process to use when considering which
international market to enter.
For most companies, selling their products and services outside of their domestic market has
become a top priority. However, not all markets are equally attractive, so the company does
not have enough capacity to occupy all markets. Companies must choose wisely the markets
they can successfully enter. First is economics factors. Not all countries are attractive to all
companies. Some companies may find that certain markets cannot afford the products they
sell and therefore should avoid entering these markets, and certain markets may easily accept
slightly different versions of their existing products. Companies should be aware that terms
such as "middle class" have different meanings in developed and developing countries.
Companies should not be satisfied with studying national indicators such as gross national
product and per capita income. It should study the data to find the number of people who can
afford to buy its products. Next is social and cultural factors. Countries differ in language,
religion, diet and many other aspects. These differences are very real and significant, and
marketers should consider how these differences hinder or promote the company's marketing
efforts in new markets. Products related to people’s lifestyles may have to undergo major
changes, or may not be recognized at all, and industrial products may even be recognized in
countries with very different lifestyles. Third is political and legal factors. Before the
company decides to invest in resources, it is important to understand the attitude of the
government and the people of the host country. The company’s history and its self-righteous
attitude towards foreign investment and real estate should also be taken into account.
Market choice plays a vital role internationally. The Chicken Rice Shop’s market selection is
a comprehensive evaluation of different markets based on the resources and goals of a given
company, based on certain clearly defined criteria. The first step in the market selection
process is to determine or determine the organization's export marketing goals. Choosing a
market that meets a particular international marketing goal is not necessarily the most
suitable market to achieve some other international marketing goals. In order to correctly
evaluate and select the market, the evaluation parameters and standards must be clearly
defined. The different parameters for choosing a market are the company's resources,
international environment, market conditions, the nature of competition and government
policies. Based on the cost-benefit analysis and feasibility study, the shortlisted market was
further evaluated.Then, rank them according to their overall attractiveness. In the market,
considering the company's resources and external environment, select the best market to
launch the product. Then, rank them according to their overall attractiveness. In the market,
considering the company's resources and external environment, select the best market to
launch the product. Initially, smaller-scale tests were conducted by launching products in
certain markets. This provides market feedback for manufacturers. Once the product has been
tested on "selected markets," the company will begin mass production. At this stage, minor
modifications (if any) were made to the product portfolio.

P4 EXPLAIN, USING EXAMPLES, THE DIFFERENT MARKET ENTRY
STRATEGIES, INCLUDING THE ADVANTAGES AND DISADVANTAGES OF
EACH.
Should a corporation first establish an export base or license its products to realize experience
during a newly targeted country or region? Or does the potential related to first-mover status
justify a bolder move like entering an alliance, making a purchase , or maybe starting a
replacement subsidiary? Many companies move from exporting to licensing to a better
investment strategy, in effect treating these choices as a learning curve. Each has distinct
advantages and disadvantages.
Exporting is that the marketing and direct sale of domestically produced goods in another
country. Exporting could also be a standard and well-established method of reaching foreign
markets. Since it doesn't require that the products be produced within the target country, no
investment in foreign production facilities is required. Most of the prices related to exporting
take the shape of selling expenses. While relatively low risk, exporting entails substantial
costs and limited control. Exporters typically have little control over the marketing and
distribution of their products, face high transportation charges and possible tariffs, and must
pay distributors for a spread of services. What is more, exporting doesn't provides a
corporation firsthand experience in staking out a competitive position abroad, and it makes it
difficult to customize products and services to local tastes and preferences.
Licensing essentially permits a corporation within the target country to use the property of the
licensor. Such property is typically intangible, like trademarks, patents, and production
techniques. The licensee pays a fee in exchange for the rights to use the intangible property
and possibly for technical assistance also . Because little investment on the part of the
licensor is required, licensing has the potential to supply a really large return on investment.
However, because the licensee produces and markets the merchandise , potential returns from
manufacturing and marketing activities could also be lost. Thus, licensing reduces cost and
involves limited risk. However, it doesn't mitigate the substantial disadvantages related to
operating from a distance. As a rule, licensing strategies inhibit control and produce only
moderate returns.
Strategic alliances and joint ventures became increasingly popular in recent years. They allow
companies to share the risks and resources required to enter international markets. And
although returns also may need to be shared, they provide a corporation a degree of flexibility
not afforded by going it alone through direct investment.
Ultimately, most companies will aim at building their own presence through company-owned
facilities in important international markets. Acquisitions or greenfield start-ups represent this
ultimate commitment. Acquisition is quicker , but starting a replacement , wholly owned

subsidiary could be the well-liked option if no suitable acquisition candidates are often found.
Also mentioned as foreign direct investment (FDI), acquisitions and greenfield start-ups
involve the direct ownership of facilities within the target country and, therefore, the transfer
of resources including capital, technology, and personnel. Direct ownership provides a high
degree of control within the operations and therefore the ability to raised know the consumers
and competitive environment. However, it requires a high level of resources and a high
degree of commitment.

M2 Apply the market evaluation criteria, entry strategies and make recommendations
for a selected organisation.
Market analysis is an important part of market research and an important part of business
plan. In this plan, business founders document their business ideas in writing. In the process
of market analysis, a specific market must be considered. With the help of the displayed
results, the company can identify opportunities and risks in a specific market. The target
group forms the basis of market analysis. In order to conduct market analysis, you will need
reliable information. Generally speaking, small companies tend to conduct the research
needed for their own market analysis. On the other hand, large companies often commission
market research institutions to do this for them.
The advantages of exporting is that companies can greatly expand their market, thereby
reducing their dependence on any one market. Higher output can bring greater economies of
scale and higher profit margins. Company’s research and development budget may work
harder because the company can change existing products to adapt to new markets. Exporting
can expose you to new ideas, management practices, marketing techniques and competitive
methods, which can help you to better develop your business in the Caribbean and overseas
markets to increase your competitiveness. In the domestic market, your product may be at the
end of its life cycle. In this case, looking for an export market is an ideal choice to extend the
product life cycle.The disadvantages of exporting is unless the company is cautious, the
company may lose focus on their home market and existing customers. When trading outside
the EU, companies may need to comply with export regulations, so their management costs
may increase. Companies will manage more remote relationships, sometimes even thousands
of miles. In overseas markets, companies may lose some of the control companies are used to
at home. Companies will need to consider new markets that are different from the local
market. When they buy products themselves, they will become different customers.

D1/D2 Produce a critical evaluation of the international market context, including
insight into how organisations should adapt their marketing strategies for various
markets.
When companies enter new markets, they must deal with cultural and demographic
differences in marketing methods. Adaptive marketing strategy is another way to give up
versatility and tend to customize marketing to attract new market customers with cultural or
demographic characteristics. Product adaptation also strategies for The Chicken Rice Shop.
New markets may respond well to corporate brand information, but not well to products. In
this case, the company can choose to change or even develop products to adapt to specific
needs or cultural habits. For example, The Chicken Rice Shop includes local ingredients and
dishes from foreign markets to attract local demand.

LO3 Investigate how elements of the marketing plan can be adapted or standardized
across international markets.
P5 Present an overview of the key arguments in the global vs local debate.
In today's rapidly globalizing world, the company is committed to conducting business on a
global scale. In order to do this effectively, they face common challenges. By following the
goals of global operations on the one hand, they must consider local differences on the other.
For decades, the company has been studying the behavior of foreign markets to understand
the main factors that influence the choice between local marketing and standardized global
marketing. The focus of each study ranges from specific elements of the marketing mix to the
absolute marketing mix or company’s business strategy. The core issue of global marketing is
to choose between selling the same product across borders and implementing local marketing
strategies to deal with regional differences. Global products can also contain local values to
make products or services more recognized. By referring to the contingency method, it is
pointed out that there is no business or marketing strategy theory or method applicable to all
enterprises or situations. Whether it is a local approach or a global approach, or the difference
between the two, marketing strategy decisions are crucial. ((Author), n.d.)
In my opinion, I think going global was the best for the company strategy. Because if the
company goes global it will earn more money and will become popularized for the whole
world.

P6 Investigate how the product, pricing, promotional and distribution approach differs
in a variety of international contexts.
The basic marketing philosophy tells us that if we aim to meet the needs of the target market,
we will sell more products. In the international market, this will involve many different
factors, including consumers’ cultural background, religious beliefs, buying habits and
personal disposable income levels. In many cases, companies will have to adjust their product
and marketing mix strategies to meet local “demands” that cannot be changed. McDonald's is
a multinational company, but their burgers are suitable for local needs. In India, the cow is a
sacred animal, and the burger contains chicken or fish instead of beef. In Mexico,
McDonald's hamburgers are served with chili sauce. Coca-Cola is sweeter in some parts of
the world than others.
Pricing on an international scale is a complex task. In addition to considering traditional price
factors (such as fixed and variable costs, competition and target groups), organizations also
need to consider other factors, such as the cost of transport, tariffs or import duties, exchange
rate fluctuations and the general economic situation of the country and how this will
influence pricing.
As with international product decisions, organizations can adjust or standardize their
promotional strategies and information. Due to language, political climate, cultural attitudes
and religious habits, it may be necessary to adjust the country’s advertising messages. For
example, a promotion strategy in one country/region may lead to illegal behavior in another
country/region. Every aspect of the promotion details needs to be researched and planned,
such as the use of colors. In China, red is lucky. In India, the bride is a worm. In India and
China, mourners and British brides wore white. Because cultural background and practices
can affect the attractiveness of consumers, many organizations have adopted promotional
strategies suitable for local markets.
The location element of the marketing mix is about distributing products or services to
customers at the right place and at the right time. Distribution in markets in countries such as
the United Kingdom may involve chain transportation from manufacturers to wholesalers to
retailers for consumers to purchase. For example, in Japan, there are approximately five
different types of wholesalers in the distribution chain. Companies will need to investigate
the distribution chain they want to operate in each country. They also need to investigate
people who want to sell products and services to businesses, retailers, wholesalers, or directly
to consumers. Due to profit margins and transportation costs, the company's distribution
strategy in each country/region may be different.

M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH AN
ORGANISATION SHOULD ADOPT A GLOBAL OR LOCAL APPROACH,
HIGHLIGHTING THE IMPLICATIONS OF DOING SO.
The so-called strategic planning is to formulate the long-term goals of the organization and
implement them. This is a formal process and ceremony. Some large companies have
consciously made plans for about 50 years. There are three stages in formulating a strategic
plan. The first step is to determine the goal, which is the goal that the company must respond
to changes in the future development process. The second stage is to make a plan. After
determining the goal, please consider what means, measures and methods to use to achieve
the goal. This is a strategic plan. Finally, document the evaluation and approved strategic
plan. If the approval fails, multiple iterations may be required, and you need to consider how
to modify it.
Global marketing strategy means that a company reviews all its marketing activities (such as
production and circulation) from a world perspective, and organizes different companies in
different countries according to the principle of optimization, and meets market demand at
the lowest cost and highest price. Optimize the marketing plan. claim. Its purpose is to
emphasize the international comparison of marketing. The global marketing strategy breaks
through the concept of national boundaries and considers the development of the company's
marketing strategy from the perspective of the world market in order to obtain the company's
comprehensive competitive advantage.

M4 DETERMINE AND ARTICULATE IN DETAIL HOW TO ADAPT THE
MARKETING MIX OF A SELECTED ORGANISATION IN DIFFERENT
INTERNATIONAL MARKETS.
By unifying products, price distribution channels, and promotion and sales plans, a
standardized final form can be achieved, thereby realizing global marketing. Although many
companies have learned that standardized methods are not as effective as people think so far,
the most common reason is that the overall demand is consistent across the globe. It is true
that common needs may usually be effective, but local influences such as religion, attitudes
and motivations are different. Although marketing may be the most important issue, global
local dilemmas affect international business in many areas. Through the standardization of
cross-border marketing mix, global strategy can bring huge cost management advantages due
to economies of scale.

D3 Produce a critical evaluation of how the marketing mix is applied to a range of
international contexts.
This seminar paper evaluates the size of standardized global marketing and native marketing
for global companies by starting with a brief insight into globalization and global firms
generally , followed by an illustration of the global-local dilemma, that forces a choice on the
selection between selling an equivalent product across all boundaries and therefore the
implementation of local marketing strategies in order to respond to regional differences.
The composition continues with an evidence of local and standardized global marketing,
exemplified by the worldwide players McDonald's and Apple and concludes with a
comparison of both approaches.
The conduct of companies in foreign markets has been studied for many years to know which
major factors influence the selection between local marketing and standardized global
marketing.
The core dilemma of global marketing is the choice between selling the same product across
all boundaries and the implementation of local marketing strategies in order to respond to
regional differences.
By pertaining to the contingency approach, which states that there's no theory or method for
business or marketing strategies that applies to all or any businesses or circumstances, the
choice of the marketing strategy, whether it's the local or global approach or a variation
between, has got to be fundamental.
According to Doole and Lowe local marketing is defined as a strategy "Where the marketing
activities of an organization include activities, interests or operations in more than one
country and where there's some quiet influence or control of selling activities from outside
the country during which the products or services will actually be sold".
According to Farrell global marketing is defined as "The systematic planning, coordination
and implementation of the firm's marketing activities across national borders." As all
marketing activities have to be implemented globally, the firm has got to rise to the challenge
of managing environmental differences in terms of culture, laws, regulations, the extent of
economic development, and even business practices.
Identifying and arranging the elements of its marketing mix enables the company to make
profitable marketing decisions at all levels. These decisions help a business give full play to
their strengths and limit their weaknesses, be more competitive and adaptable in the market
and improve profitable cooperation between departments and partners.

LO4 Demonstrate an understanding of how to organise and evaluate international
marketing efforts (multinational, global, transnational, meta-national, etc.)
P7 Explain and analyse the various international marketing approaches organisations
can adopt.
Global marketing strategy is actually an important part of global strategy. In addition, a good
global marketing strategy will cover all countries in the world and coordinate their marketing
efforts accordingly. Of course, this strategy does not always cover all countries, but should be
applied to specific regions. For example, you can segment North America, Latin America,
Europe and the Middle East, Asia and the Pacific, and Africa. In addition to segmenting by
country or region, global marketing strategies almost always include the following: a unified
brand name; the same packaging; similar products; standardized advertising information;
synchronized pricing; coordinated product launches; and harmonious sales activities.
In addition, in this international marketing method, direct export is usually used as the entry
method. Furthermore, internal marketing functions need to be developed to adopt this
approach. Another method of international marketing is decentralized management, in which
marketing functions and decision-making agencies are distributed internationally. If this
method is adopted, the company can form a small group of independent distributors. Through
this international strategic approach, local marketers can be supported. In addition, in order to
follow this international marketing method, it is necessary to establish close working
relationships with other people in different countries, which is the key to successful
marketing.

P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO
ASSESS COMPETITORS OUTLINING THE IMPLICATIONS OF EACH
APPROACH.
There are four main types of positioning that companies can use. They are ethically centered,
polycentric, regionally centered, and geocentric. The people-centred approach refers to
methods that consider overseas business less important than domestic business. This is part of
the family, or part of the family orientation or less; Brake Foods Co., Ltd. will be required to
evaluate domestic competitors first, rather than international competitors to evaluate
competitors. Similarly, a multi-center approach should be followed in family positioning, in
which local people and technology are considered the best way to deal with local market
conditions. For international positioning, companies can use a regional-centric approach and
a geocentric approach. According to the region-centric approach, different international
regions are regarded as different markets for the company. Therefore, the treatment of
international competitors is different, so different strategies need to be developed for them.
Finally, under the geocentric approach, the company will be required to treat the entire world
as a single market. Therefore, the company will need to adopt a standardized marketing mix.

M5 Evaluate various marketing approaches and competitor analysis in relation to an
organisation and make recommendations on how they should operate in an
international context.
Before entering the international market, the company will be required to evaluate its
competitors on an international level. Therefore, the company will be required to conduct a
comprehensive competitor analysis. In order to analyze competitors, companies can follow
two types of positioning, namely domestic positioning or international positioning, each
positioning method deals with competitors in a different way. On the other hand, two
marketing methods have been discussed, namely centralized or decentralized international
marketing methods operating in the international market. In addition, the food market is
highly competitive in all countries/regions, so this method will be more beneficial to the
company because it does not require the company to make marketing investments in other
countries/regions and can make centralized decision-making.

D4 Make recommendations on how organisations should be structured to maximise the
opportunity in an international context.
In order to play the best role in the international environment, it is recommended that Brakes
Food Ltd. adopt a hierarchical structure, in which the UK headquarters should assume all
international business responsibilities. In addition, it is recommended that the company make
all relevant decisions from the home country, as this will help avoid various risks associated
with the decision. (Unit 40 International Marketing Solution, n.d.-b)

References
(Author), V. A. (n.d.). Global vs. Local Marketing. An Analysis of the Usefulness for Global
Companies. Retrieved February 28, 2021, from https://www.grin.com/document/350847
Unit 40 International Marketing Solution. (n.d.-a). Retrieved February 28, 2021, from
https://www.hndassignmenthelp.com/unit-40-international-marketing-brakes-food-ltd/