Unit 40 International Marketing Assignment

PEARSON BTEC LEVEL 5
HND IN BUSINESS
Unit 40: INTERNATIONAL MARKETING
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Table of Contents
Introduction......................................................................................................................................5
P1: Analyze the scope and key concepts of international marketing..............................................5
Concept of international marketing.............................................................................................5
Benefits of internet marketing.....................................................................................................5
Scope of international marketing.................................................................................................6
Level of international marketing.............................................................................................6
International marketing concept..............................................................................................7
P2: Explain the rationale for an organization to want to market internationally and describe the
various routes to market they can adopt..........................................................................................8
Rational for international expansions..........................................................................................8
Competition.............................................................................................................................8
Regional Economic and Political Integration..........................................................................8
Technology..............................................................................................................................9
Improvements in Transportation and Telecommunication......................................................9
Economic Growth....................................................................................................................9
Transition to Market Economy..............................................................................................10
Converging Consumer Needs................................................................................................10
Firm-Specific Drivers................................................................................................................10
M1: Evaluate the opportunities and challenges that marketing internationally presents to an
organization...................................................................................................................................10
Opportunities.............................................................................................................................11
Market Expansion..................................................................................................................11
Brand Reputation...................................................................................................................11
Global Networking................................................................................................................11
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Opening the Door for Future Opportunities..........................................................................12
Challenges..................................................................................................................................12
Self-reference Criterion.........................................................................................................12
Government Barriers.............................................................................................................12
Barriers Imposed by International Competition....................................................................12
P3: Evaluate the key criteria and selection process to use when considering which international
market to enter...............................................................................................................................12
Decision 1..................................................................................................................................12
Capability analysis.................................................................................................................12
Domestic factors....................................................................................................................13
Market saturation...................................................................................................................13
International Environmental Factors.....................................................................................14
Market Knowledge................................................................................................................14
Decision 2..................................................................................................................................14
Which Country to Enter?.......................................................................................................14
Segmentation variables..........................................................................................................14
International market selection................................................................................................14
Decision 3..................................................................................................................................15
Decision 4..................................................................................................................................15
Decision 5..................................................................................................................................16
P4: Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each....................................................................................................................16
M2: Apply the market evaluation criteria, entry strategies and make recommendations for a
selected organization.....................................................................................................................18
D1: Produce a critical evaluation of the international market context, including insight into how
organizations should adapt their marketing strategies for various markets...................................18
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P5: Present an overview of the key arguments in the global vs local debate................................19
M3: Evaluate the context and circumstances in which an organisation should adopt a global or
local approach, highlighting the implications of doing so.............................................................19
Political environment.................................................................................................................19
International legal environment.............................................................................................19
Economic environment..........................................................................................................20
Social issue............................................................................................................................20
Technological environment...................................................................................................20
Demographic environment....................................................................................................20
References......................................................................................................................................21
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Introduction
McDonald Corporation is the biggest fast food restaurants in UK. It mainly provides French
fries, chicken, hamburgers, soft drinks and breakfast. McDonalds Fast Food Company is the
biggest retail company of food for its spicy and yummy hamburgers, soft drinks and French fries,
McDonalds functions its business about in over 199 countries. The popular of the McDonalds
functions on the franchising source in the UK. The organizational management and strategic
focus has situated McDonalds to struggle efficiently in the competitive industry and therefore,
frame the competitive base in organizational environment and have a market niche for its
company.
P1: Analyze the scope and key concepts of international marketing
Concept of international marketing
Internet marketing, also known as global marketing explains the marketing process implemented
by national borders or transatlantic organizations. This plan applies the techniques expansion
applied in the company’s main country. International marketing is the global conception of
executing and planning process, ideas of 4P’s, services and goods to make exchanges which
assure objectives of organization and individual. On the other hand, international marketing is
principles of marketing application through national borders. However, there is an evolution
among that is normally uttered by global marketing and internet marketing that are same words.
Benefits of internet marketing
Internet Marketing is very cost effective process because organizations do not need to concern
about postage, travel, printing documents or other costs or expenses that create it not costly
contrast to another traditional marketing. The benefit which it will give to the customers is that
the organizations will include more money which they may devote in giving good customer
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service, such as, enter into different sectors of new market. Internet marketing process is very
easy and quick.
Scope of international marketing
Level of international marketing
Domestic marketing:
A domestic marketing functions its business in one country, purchasing its domestic resources as
well as selling services and products in local and national market. Most of the small
organizations include domestic businesses, such as, grocery stores, restaurants and hair salons.
There are big organizations which function completely in domestic markets. The domestic
market is where services and products are sold and bought in country’s borders. This is the
smaller market than the global markets, foreign markets, international markets and external
markets.
Export marketing:
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Export marketing engages the documentation, creation, promotion and pricing of the offering
which attract abroad buyers and customers. In many terms offering may be created accessible
and provided throughout overseas distributor and agent. Export marketing contains invention to
the accurate channels for recompense.
The problem of export marketing is that one should take into explanation of language
differences, cultural differences and payment preferences and systems differences.
International marketing:
Internet marketing explains the marketing process implemented by national borders or
transatlantic organizations. This plan applies the techniques expansion applied in the company’s
main country. International marketing is the global conception of executing and planning
process, ideas of 4P’s, services and goods to make exchanges which assure objectives of
organization and individual.
Global marketing:
Global marketing is normally selling the product globally. However, this contains the total
method of producing, planning, promoting and placing the organization’s goods in the
international market. Large organizations have business offices in foreign countries they sell to;
but after the internet expansion, small organizations can reach customers through the globe.
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International marketing concept
1. Domestic Market Expansion Concept (Ethnocentric)
The domestic organization which searches for domestic products sales expansion into foreign or
abroad markets explains this direction to the international marketing. This observes its
international process as secondary and an expansion of domestic operations. The basic purpose is
to organize of surplus production of domestic. This Domestic Market development policy may
be very money-making. Small and large exporting organizations move toward to international
marketing.
P2: Explain the rationale for an organization to want to market
internationally and describe the various routes to market they can adopt
Rational for international expansions
Competition
Nowadays the world has become the part of competition. If the competitors go to the foreign
marketplaces, it looks consistent which the business should do well (Gioeli, 2016). If a business
has the competitive opposition in U.S., then the competitor could achieve the developed brand
recognition or exposure by going to the marketplaces whereas a business does not have an
existence. By pursuing along or going to before competitors a business manage equivalence in
exposure and activities.
Regional Economic and Political Integration
Regional agreements (including MERCOSUR, NAFTA and the European Union lower) as well
as eliminated barriers encourage the trade in the general marketplaces. Companies are mainly
recognized in particular marketplaces to get the advantage of free trade in region.
According to Jamaes (2016) notes, a number of organizations develop their business globally to
improve collaborations in the resources which increase the expansion value. For example, a
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number of organizations in U.S. have developed in the Asian marketplaces to influence the
technical knowledge of local population, developing their personal abilities though increasing the
client bases. Distribution proficiency can be developed by creating several international
structures. This is so true for the organizations which resource supplies on the international basis.
A down domestic organization leaves some facilities for the organizations to grab the customers.
Such as, countries which are developing can give sufficient opportunity for the new revenue.
Finding out resources or making the partnership facilities may also give to business capability to
tap in the foreign customer marketplaces.
Technology
Customers from over the world are exposed to the same services and products. As Gioeli (2016)
notes, the internet and web technology have modernized the way of the organizations to conduct
their businesses. Before the creation of internet the organizations can do their business traditional
process but after the creation of internet every business process becomes automated. Moreover it
is essential to set up the business shop in a place where a business organization can target more
customers. On the other hand, the online buying process has changed all the things. Invention of
online shopping people can buy their products by seating at home (James, 2016). Evaluate the
costs for the business website for online shopping is necessary. For example, eBay makes its
website in a way that makes it customers easy to buy their desired goods or services.
Improvements in Transportation and Telecommunication
Telecommunication is developed the lower cost and higher communication quality because of
teleconferencing, e-mail and satellite technology. On the other hand, transportation is developed
because of containerization and the invention of new technology.
Marketing to the global marketplaces directly against applying the current portal which offers
global help requires straight planning (Molisch, 2016). Nowadays people business people can
communicate with the customers and held meeting through email, phone and so on. Assess the
advantages of having the native-language website which is designed mainly for some countries.
Moreover, there is a drop-down menu in the language site which permits the users to select the
language they like better. Last of all, if a business organization will be operating with the partner
and steady consumers; remind that nothing can beat occasional personal visit.
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Economic Growth
Developing the economies are becoming the feasible trade associates. Owners of the small
businesses recognize the significance of expanding the revenue. A business must lose if no
customers give the positive review (Jones, 2016). Marketing a business globally can diversify
and expand businesses revenue sources by establishing several services and products to the
customers in different countries. Therefore, if domestic economy becomes inactive, businesses
can displeasure the effect over the revenue from several countries with developed economies. An
international sale can support the pain of losing consumers through economic suffering.
Transition to Market Economy
Transition to the market economy can create new marketplaces. Generated opportunities help to
transform the ineffective government-owned organizations in the successful organization.
Converging Consumer Needs
Unchanging consumer needs are developing internationally. The customers might be demanding
for the latest products and services. The main motto of every organization is to satisfy the needs
of the customers (Charan, 2017). If the needs of the customers are not satisfied then the business
will fail to achieve the goal. Thus, the business organization must do the business globally to
target the customers and satisfy the needs of the customers.
Firm-Specific Drivers
Product Life Cycle Considerations: there is the opportunity to extend the lifecycle of the
products by going to the growth marketplaces.
High New Product Development Costs: Organizations have to look away from the home-
country marketplace to develop the investment costs
Standardization, Scale Economies, Cheap Labor: Then, price competition on maturity drives
the organization to the new global marketplaces
Experience transfer: Understanding or experience in one country helps as the basis for the
policies in the new global marketplaces.
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M1: Evaluate the opportunities and challenges that marketing internationally
presents to an organization.
Several opportunities and challenges of the business in the global marketplace can be assessed by
evaluating both micro and macro environment of the business. The forces in the immediate
environment of the organization that directly impact the decisions or operations of the
organizations can define micro environment (Bailey, 2016). Suppliers, different marketplace
mediators and several service organizations including transporters, middlemen, and agencies of
advertising and marketing research, general public and competitors are included by these. Macro
environment includes wider forces that influence the organizations and the other forces in the
micro environment of the organization. These contain several factors (including political, legal,
economic, social etc.). Moreover, organizations want to constantly manage the changes in these
environmental forces as well as develop policies to tackle with them.
The finding of macro and micro analysis of McDonald’s in the China marketplace
recognizes several challenges or opportunities which are described as below.
Opportunities
Market Expansion
As Biley (2016) notes, market expansion is the great advantage of marketing globally. Increasing
the places whereas an organization does business as well as promotes its services or products to
open up the broader customer base and possibly develop the profit margins. On the other hand,
small organizations may discover that marketing globally is high-priced, several technology
(including social media advertising services and online newspaper have created the global
marketing process very attractive.
Brand Reputation
Global marketing can has the great advantage of supporting to develop the reputation of the
brand of a business. Customers always search for the branded and quality products. For example,
the well-known automobile industries are the great example. Customers are like to purchase the
products which are broadly accessible (Dodson, 2016).
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Global Networking
Global networking is the process by which a business is developing in the international
marketplace. Moreover, global networking helps the business organization to connect with both
new customers and business partners. On the other hand, the facilities for global networking are
boundless. The more "places" a business is done, the more global connections it can create.
Opening the Door for Future Opportunities
Global marketing can open door for the business for future business opportunities. Moreover,
international marketing develop the sales base of the organization and it also supports the
business organization to attach with the new sellers. Being in the new marketplace develops the
efficiency of the business (Dodson, 2016).
Challenges
Self-reference Criterion
The organizations have to choose the proper and skilled persons for global assignments and
involve in the better training to counter the influence of criterion of self-reference.
Government Barriers
There are several government barriers on the foreign organizations such as commanding tariffs,
restricting awards for license and import quotas.
Barriers Imposed by International Competition
There are several barriers created by international competition such as distribution blocked
channels, several retailer agreements and high price in the marketplace.
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P3: Evaluate the key criteria and selection process to use when considering
which international market to enter
Decision 1
Capability analysis
Managerial capability
Managerial capability is manager’s capability to make the strong culture and place of working
that assists the working staffs to engage and develop and all together objectives and goals of
business are gained. It contains collaborative decision making, leadership qualities and
developing innovation and creativity (Polhemus, 2017).
Financial capability
Financial capability is the arrangement of skills, self-efficacy, knowledge and attitude required to
exercise and create decisions of money management which best fit one's life circumstances, in an
allowing atmosphere which contains, but it is not incomplete to, contact to suitable services of
finance (Polhemus, 2017).
Domestic factors
Market saturation
Market saturation is the condition in that a good has become distributed in the business market;
the saturation main level may rely on purchasing power of consumer and technology, prices and
competition. Market saturation is the condition which increases when the service or product
volume in the business marketplace has been increased in current condition.
Product obsolescence
Planned obsolescence, also known as built-in obsolescence, in organizational economics and
design is the product designing or planning policy with an unnaturally inadequate helpful life, so
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this will become superseded, which is old-fashioned or no longer useful, after the definite time
period. Product obsolescence is the assessment of good’s operational lifecycle ending. Normally,
product obsolescence has calculated during the development of product stage and is expected
applying future and past technological and organization development statistics.
More beneficial tax structure
A tax structure which is progressive is the regressive tax structure opposite. In the tax system,
taxpayers creating more cash recompense higher tax rates than those creating little cash.
The economy tax structure relies on its tax rate, tax base and how the tax rate differs. The tax
base is quantity to that a tax rate has used.
International Environmental Factors
There are different types of international environmental factors. Legal factors, economic factors,
political factors, socio-cultural factors, environmental, technological and demographic factors are
the different types of international environmental factors (Johnson, 2017).
Market Knowledge
The market knowledge C-level capability is about accepting the context of marketing in that an
organization operates. Capability in market knowledge is normally the leadership competencies
requirements of commercial orientation, customer impact and strategic orientation (Michaels,
2016). This has been confirmed that economic organizations (for example, regulatory
institutions, property rights, organizations for stabilization of macroeconomic, organizations for
social assurance, conflict management of institutions, etc.) are main source of financial
development across different countries (Michaels, 2016)
Decision 2
Which Country to Enter?
Franchising, licensing, joint ventures, direct exporting etc are the different of methods in that an
organization may enter into foreign market.
Segmentation variables
Demographic segmentation includes race, gender, marital status, age, occupation, income and
education.
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Sociographic segmentation includes reference group, social class, and family life cycle.
Psychographics and lifestyles segmentation is the method which places focus on shared interests,
activities and specific customers’ behaviors.
International market selection
Market size
Understanding market size supports a market differentiate among 2 types: the addressable
business that is whole opportunity of revenue for service or product and accessible market that is
the addressable market’s part for that a person can practically contend. By outlining the
distinction among these 2, one may improve the product offering to undertake that consumer
engaging spot.
Growth
International market has developed radically in current years as a result of environmental
changes and strategic imperatives. Strategic imperatives contain requirement to influence acquire
resources, core competencies, search for new markets and equal the rivals actions. Though
strategic imperatives point out why organizations desire to internationalize their business
functions, important changes in technical and political atmosphere have no uncertainty helped
the unstable development in international market action.
Strategic Importance
International marketing needs throughout research of market as customer preferences and needs
may be dissimilar from country to country. Not each service or product highlighted “American”
is the habitual development overseas. But the key strategic marketing principles forecast use --
take innovations to place of market which give increased benefits to consumers and ensure
efficiently communicate these advantages to target consumers.
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Decision 3
There are different modes of entry of international market. These are exporting, alliance, foreign
direct investment and contractual agreement.
Decision 4
Waterfall Strategy: An organization transfers all of its accessible business resources into one and
chosen few markets.
Sprinkler Strategy: An organization increases its business resource to achieve small footholds as
many as probable.
Sequencing: different activities timing
Decision 5
McDonalds is the world’s most important food company. McDonalds normally sells chicken
products, hamburgers, breakfast items, cheeseburgers, desserts, soft drinks and milkshakes.
McDonalds engages different pricing strategies which proffer bundling goods other products and
meals for consumers.
P4: Explain, using examples, the different market entry strategies, including
the advantages and disadvantages of each
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Figure: Different market entry strategies Source: Lecturer Notes (2018)
There are mainly four types of market entry strategies which are exporting, contractual
agreements, international alliances and foreign direct investment which are described as
below:
Exporting
To enter the new global market exporting is the very easy way. A number of business
organizations do not properly plan to be the exporters. They may basically begin to accept the
orders from the foreign customers. On the other hand, a number of business organizations are
intended with the exporters who desire to develop their business globally (Root, 2016).
Exporting market entry strategy has two sub strategies which are: a) indirect via domestic
distributors and b) direct to customers or distributors abroad. There are different advantages of
exporting. It needs less investment as well as permits the business organizations to ‘try out’ the
exporting on the small scale to develop the global strategies or plans deprived of great
commitment. Moreover, exporting permits the business organization to focus on the production
in the single location and permitting for good economic scales. There are also many
disadvantages of exporting such as if the business organization are not careful, it can lose focus
from the home-country markets.
Contractual Agreements
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There are three sub strategies of contractual market entry strategy which are contract
manufacturing, licensing and franchising.
Franchising / Licensing
Franchising is the form of licensing. A business organization successfully provides the
franchisee or license permission as a licenser or franchiser to create the original products and
services, to apply the manufacturing process, to receive the marketing or technical advice and to
apply the business brand and trademark (Lymbersky, 2016). There are several advantages of
franchising or licensing. Franchising helps to offer or implement the advantages of least costs of
business that may closed because of the policies of government. The disadvantage of franchising
or licensing is business revenues are expected to be considerably lesser than other market entry
strategy. Licensing and franchising is the well-known sub strategy of contractual market entry
strategy.
International Alliances
There are three sub strategies of the international alliances which are consortia, strategic
international alliances and international joint ventures. All of them joint venture is well-known.
Joint Ventures
International joint venture is the arrangement among two or more than two organizations to link
with the forces for the investment purpose and each organization must share the financial
running and business management. Moreover, joint ventures are mainly the alternative process to
build the manufacturing process and propose benefits for example:
 Capital expenditure is distributed.
 Risks are reduced such as less intervention of government
 Control on the production, business operations and marketing (Kamau, 2016)
 Better local market intelligence provided by indigenous joint venture partner.
Three are several advantages of joint ventures which are access to the distribution networks as
well as new marketplaces, to share the costs or risks with the business partners and access to the
broader resources. On the other hand, joint venture has some disadvantages such as the business
partners have the several objectives of joint ventures and business partners do not give sufficient
leadership (Lymbersky, 2016).
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M2: Apply the market evaluation criteria, entry strategies and make
recommendations for a selected organization
Several entry modes may be proper below several circumstances as well as entry mode is
significant factor in the business success. McDonald faced several challenges to develop its
business in the foreign country. On the other hand, besides the entry mode, the other significant
element is the decision of McDonald which was just where it wants to locate. There are several
issues in making decision, and McDonald must careful to evaluate or define the standards for
selecting the location. On the other hand, McDonald follows different market entry strategy to
develop its business in the foreign country. Exporting, franchising or licensing and joint ventures
are followed by McDonald to develop its business properly.
D1: Produce a critical evaluation of the international market context,
including insight into how organizations should adapt their marketing
strategies for various markets.
Business organizations may have to apply several market entry strategies for several countries
which will just permit the restricted level of imports. However, it may want the businesses in
creating the facilities of manufacturing to give jobs and limit foreign exchange outflow. In
addition, a number of market entry strategies are questionable on the practical base. As Jones
(2016), to review and selection the market entry strategy is essential for the business and thus it
is important to create a knowledgeable assessment before get on the global dealings of business.
P5: Present an overview of the key arguments in the global vs local debate
An overview of the key arguments in the global debate in compare to the local debate is
described as below:
 The classification is relied on business location at that forces of environment operate as well
as exist.
 Domestic business environment includes several factors including climate of economic,
competitive configuration, legal or political factors that are significantly uncontainable by the
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business organization. Several factors work at the national level as well as the organizations
is usually accustomed with them.
 Foreign business environment includes several factors such as political, social, legal, cultural
and economic are the main in the foreign country (Dodson, 2016). The organization can
disregard them just at losing business’s costs in the foreign marketplaces
 International environment exceeds the national boundaries as well as it is not restricted in the
influence to the country. International environment uses the influence over both foreign and
domestic countries.
M3: Evaluate the context and circumstances in which an organisation should
adopt a global or local approach, highlighting the implications of doing so
Political environment
There are several international relations and law in the political environment such as sovereignty,
self-determination as well as independence from the external interfering. Moreover, global trade
limits the sovereignty and governments can appeal sovereignty in the business organizations. As
Fernando (2016) notes, political risks are related to the government tax structures, tariffs,
exchange-rate processes, import and export license requirements, quotas as well as other trade
barriers. On the other hand, political risks are related to the labor and actions group and the
terrorism.
International legal environment
The international legal environment includes the International Laws, Host Country Laws and
Home Country Laws. Then, the legal systems include Common law, Code (Civil) law and
Islamic law (Fernando, 2016). On the other hand, the violation of the rights of intellectual
property is the great threat to the international corporations; competitiveness.
Economic environment
Economic environment includes the capita income as well as population size, economic
development’s stages, depletion pattern, system of the business economy, demand analysis of the
products and competition analysis
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Social issue
Global business is working in the cross-cultural environment. This creates the organization’s
business difficult as the organization has to gain the several foreign cultures which are from their
own and reflect on the strategies of the business (Fernando, 2016). On the other hand, culture is
described as a constantly changing completely of shared or learned rituals, meanings, or norms
between the society and organization’s members. Moreover, culture is described as the
personality of the society.
Technological environment
Technological environment includes new styles of organization, product development, technique
so management, techniques of business production, threats of internet and credit card accepting
from the unknown buyers.
Demographic environment
Then, the demographic environment includes growth rate, business size, age, sex, religion and
education level of the customers etc.
P6: Investigate how the product, pricing, promotional and distribution
approach differs in a variety of international contexts.
In the time of launching new products in the international market, the company has to follow a
marketing strategy called marketing mix. Marketing mix is consisting of 4p’s. They are price,
promotion, place and products (Sharma, 2015).
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Diagram: Marketing mix, Source: Slideshare (2017)
Product
The idea of general marketing explains about the ways to escalate the sale of the products in the
market to meet the ultimate objectives of the business (Bradley, 2005). However, incase of
international marketing, sales of products consists different factors. They are cultural background
of the consumers, religious beliefs, purchases preferences and range of earnings of the
consumers etc (Sharma, 2015).
Promotion
In the international marketing, promotional works also need to be arranged according to the
culture, norms and values, religion and other social issues. The language, societies’ rule and
regulations, religions, belief all differ from country to country, region to region. The business
who wants to launch their product in the international market they have to consider all these
factors incase of creating their promotional works (Sharma, 2015).
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Pricing
Pricing is the trickiest factors of marketing mix. In case of international marketing, pricing is
very complicated job. To set a reasonable yet profitable price in the international market for their
products, the company must consider following factors:
 Fixed and variable pricing rates.
 Transportation cost.
 Tax
 Variation in the exchange rates.
 The type of currency and their value.
 Income of the customers (Bradley, 2005).
In the modern age of technology, pricing has been very difficult job for the marketers. The
reason behind this is through internet, customers can easily compare their desired product prices.
If they find more cost friendly product of same quality from the opponent company, they will
prefer that. For this, competition in the market is great (Sharma, 2015).
Place
Marketing Mix will be completed with the proper pricing and promotional works and selling the
quality product in the right place (Bradley, 2005). In case of national marketing, the distribution
chain is lot shorter than the international marketing. Companies can find their raw material in the
international market from many sources. However, before choosing and buying the raw material
from the distributor, the companies have to analyze the market (Sharma, 2015).
M4: Determine and articulate in detail how to adapt the marketing mix of a
selected organization in different international markets.
Product
While doing international marketing, the business has to think about the regional peoples’
preferences and demand. Then they have to make their marketing strategies. As example,
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McDonald’s is an international company of fast food. It is very well known in world different
countries. However, According to Doole & Lowe (2008), in India the people worship cow and it
a very holy sacred animal for them. Otherwise beef they eat chicken, fish, vegetable etc. for this,
if McDonald’s want to do their business in India they have to prepare their food according to
Indian peoples’ preferences and choices (Bradley, 2005).
Promotion
As example, red is the luck color on China according to the Chinese peoples’ beliefs. Again, red
color is the perfect color for the brides in the India. So, companies such as McDonald’s use red
color more in their promotional works, they will be able to gain a lot more attention on the
customers (Bradley, 2005).
Pricing
To set a reasonable yet profitable price in the international market for their products, the
McDonald’s must consider following factors:
 Fixed and variable pricing rates.
 Transportation cost.
 Tax
 Variation in the exchange rates.
 The type of currency and their value.
 Income of the customers.
Place
Companies can find their raw material in the international market from many sources. However,
before choosing and buying the raw material from the distributor, the companies have to analyze
the market. Like, if McDonald’s want to do their business in China, first they have to do a
PESTLE analysis before they select their distribution channel (Bradley, 2005).
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D2: Produce a critical evaluation of how the marketing mix is applied to a
range of international contexts.
Incase of international marketing, sales of products consists different factors. They are cultural
background of the consumers, religious beliefs, purchases preferences and range of earnings of
the consumers etc. In the international marketing, promotional works also need to be arranged
according to the culture, norms and values, religion and other social issues (Bradley, 2005). The
language, societies’ rule and regulations, religions, belief all differ from country to country,
region to region. The business who wants to launch their product in the international market they
have to consider all these factors incase of creating their promotional works. Pricing is the
trickiest factors of marketing mix. According to Doole & Lowe (2008), in case of international
marketing, pricing is very complicated job. Marketing Mix will be completed with the proper
pricing and promotional works and selling the quality product in the right place. In case of
national marketing, the distribution chain is lot shorter than the international marketing.
Companies can find their raw material in the international market from many sources. However,
before choosing and buying the raw material from the distributor, the companies have to analyze
the market.
P7: Explain and analyze the various international marketing approaches
organizations can adopt
International Marketing Strategy
According to Chang, K. (2016) , during entering into an international market, organizations can
adopt many international marketing strategies. Such as ownership strategies, Exit strategies,
Reentry strategies, entry analysis, entry strategies alternatives, etc.
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Diagram: international marketing strategies Source: Lecture note (2018)
Stages of International Marketing Involvement
Chang, K. (2016) suggested that, there are five stages of international marketing involvement.
They are:
1. Not doing the international marketing directly: in the first stage, the companies who
wish to launch their products in the international market, they do not chase the customers
directly in the international market. They target their customers through different
channels. For this, they take help from the whole sellers, distributors or online marketing.
2. Occasional international marketing: in this stage company begin to sell their products
occasionally in the international market. However, they have to depend on the extra
product they are selling in the international market which already subsist there.
3. Routine international marketing: in this stage, companies launch their products
domestically and internationally. They start their business on the regular basis.
4. International marketing: in this stage, the company establishes their international
marketing completely. They have now become the international organization.
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5. Global marketing: in this stage, they alter all of their marketing concentrating on the
global aspect. They start to consider the whole global market as one market.
Strategic Approaches to Marketing Internationally
There are some strategic approaches to market internationally (Chang, 2016). They are given
below:
1. National market expansion position: Considering global markets subordinate to
national market.
2. Multidomestic market position: the strategies in every country are different.
3. Global marketing position: all the marketing functions are international.
P8: Compare home and international orientation and ways to assess
competitors outlining the implications of each approach
Comparison between the home and international orientation
Home orientation International orientation
Home orientation or domestic marketing is
defined as the market which is bounded
among on country (Surbhi, 2015).
International orientation or international
marketing refers to the business which
operates all over the world (Surbhi, 2015).
All the marketing factors like pricing; target
customers, products quality, promotional
works, distribution etc. are made focusing on
the national aspect (Surbhi, 2015).
All the marketing strategies like product,
price, promotional work, place etc. are made
concentrating on the international percept
(Surbhi, 2015).
Home orientation is based in the short area
(Surbhi, 2015).
International orientation covers the large area
of world (Surbhi, 2015).
In the home orientation, the influence of the
government is less (Surbhi, 2015).
However, in case of international orientation
the influence of the government is more
(Surbhi, 2015).
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Home orientation is based on only one
country (Surbhi, 2015).
International orientation is based on many
countries (Surbhi, 2015).
In home orientation possibilities of
encountering risks and challenges are much
less (Surbhi, 2015).
In international orientation the possibilities of
encountering risks and challenges are much
less (Surbhi, 2015).
Here, investment or capital is needed less
(Surbhi, 2015).
The amount of capital is needed huge (Surbhi,
2015).
Diagram: Difference between domestic marketing and international marketing, Source: Key
difference (2017)
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To assess the competitors in the market, the approaches that can be used by business are given
below:
1. Firstly, determination of the business or company type should be done.
2. Then, a research should be done on the customers, competitors and market of the desired
country where international marketing will take place.
3. Then determination of the competitors should be done.
4. The identification of the customers and their demand and preferences should be done.
5. Then the factors that made the competitors of the market successful should be determined.
6. Then the factors should be ranked according to their significance.
7. The the most significant factor should be identified that made the competitors successful.
Factors Complicating International Competition
1. Differences in the customers preferences and tastes for the products due to cross country
diversity.
2. Differences in incomes, salaries, taxes, tariffs due to cross country diversity.
3. Differences in politics, government rules and regulations for the other countries in case of
international marketing.
4. The huge risk in fluctuation of values of the currencies.
International Competition Issues
1. Quality of the regional product vs. the quality of the international products.
2. Price related advantage in the countries where international marketing will take place like
 Salaries of the customers, tax, government regulations are not very pricey, more cost
friendly resources etc.
3. Political risks in the country where the international marketing will take place:
I. Protectionist tariffs, quotas, rules, etc.
II. Political, economic, monetary stability
4. Fluctuations in the values of the currency.
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M5: Evaluate various marketing approaches and competitor analysis in
relation to an organization and make recommendations on how they should
operate in an international context.
There are many marketing approaches. In case of McDonald’s, McDonald’s should follow the
global marketing orientation. In case of analyzing the competitors in the international marketing,
McDonald’s can use different strategies. Firstly, determination of the business or company type
should be done by McDonald’s. Then, a research should be done on the customers, competitors
and market of the desired country where international marketing will take place by McDonald’s.
Then determination of the competitors should be done by McDonald’s. The identification of the
customers and their demand and preferences should be done by McDonald’s. Then the factors
that made the competitors of the market successful should be determined by McDonald’s. Then
the factors should be ranked according to their significance by McDonald’s. Then, the most
significant factor should be identified that made the competitors successful by McDonald’s.
D3: Make recommendations on how organizations should be structured to
maximize the opportunity in an international context
To maximize the chances in international context organizations should be structured according to
their business operations and Co-ordinates.
Diagram: organization structure, Source: lecture note (2017)
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PESTLE analysis (2017) suggested that, A business depends one many factors like, organization
structures, cultures, functions of the business and procedures of the business.
There are three types of structures that can be followed to maximize the chances in international
context organizations, they are:
1. Export Departments
2. International Divisions
3. Internationally Integrated Structures
Conclusion
In this paper, this fist sections analyses the opportunities and main idea of international
marketing. The second section discusses the reasons of international marketing and explained the
different ways of the markets those can be adapted during international marketing. The third
section evaluates the criteria of entrance of the international marketing. The fourth stage
discusses those strategies of the utilizations and their examples. The fifth stage discusses the
main disputes of the domestic and international marketing. The sixth section discusses the
marketing mix for the international marketing. The seventh section discusses the international
marketing approaches. The eighth section discusses the comparison of home and international
orientations.
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