International Marketing: Expanding Business in Germany

This report discusses the concept of international marketing and its importance for businesses looking to expand in foreign markets. It focuses on Rowlinson Knitwear Ltd, a UK-based manufacturing company planning to expand its business in Germany. The report covers topics such as the definition and scope of international marketing, differentiating it from local marketing, the rationale for international expansion, international marketing entry routes, and the key criteria and selection process for entering international markets. It also explores the advantages and disadvantages of different market entry strategies.

International
Marketing

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction to the organization.............................................................................................3
Define international marketing and differentiate to local marketing.....................................4
Scope and key concepts of international marketing...............................................................5
Rationale for an organisation to want to market internationally............................................5
International marketing entry routes and which one the company should adopt...................6
Key criteria and selection process company should use when entering international market7
Market entry strategy advantages and disadvantages of each................................................9
Conclusions and recommendations on how and why the company should enter the
international market..............................................................................................................10
Key arguments in the global vs local debate........................................................................10
Product, pricing, promotional and distribution approach differ...........................................11
International marketing approaches.....................................................................................11
Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach..............................................................................................12
Recommendations for the company.....................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
With the increase in globalisation the companies have started expanding their businesses
internationally so that they can capture the growing business opportunities in those markets
which can help them in making more profits. International marketing is therefore important for
such businesses so that they can use the marketing principles and marketing strategies so as to
capture the market in foreign countries and reach their target customers in an efficient manner. In
order to become successful in the international market it is important that the company
efficiently market its products and services so that the sales of company can be increased and
economies of scale can be achieved (Andersson and Evers, 2015). In this report Rowlinson
Knitwear Ltd is taken which is a manufacturing company located in UK and was established in
1935. The company deals in knitting school uniforms for students which are made up of
comfortable, durable and affordable fabrics. The company focuses on providing its customers
with high quality clothes so that their experience can be maximised. The company is now
planning on expanding its business in Germany so that it can increase its sales and also gain a
global recognition. In this report the concept of international marketing, factors influencing the
business internationally, importance of choosing right international market etc. will be discussed
so as to gain a complete idea about marketing internationally about business.
MAIN BODY
Introduction to the organization
Rowlinson Knitwear is a medium scale manufacturing company which is located in
Stockport, UK and was established in the year. The company manufacture garments of premium
quality for independent retailer of school wear and corporate wear. The company is well known
for its high quality fabric used in knitting clothes which are available at affordable costs and also
the fabrics used are durable which increase the customer satisfaction (Coviello, Jones and
McDougall-Covin, 2015). Currently the main market of the company is within UK where it sells
it products to the customers of local markets and to the retailers who provide customers with
uniforms for schools or companies. The company has a huge market within UK as the quality
and cost of the fabric help it in attracting the attention of customers which help in increasing its
sales. The company is therefore aiming at expanding its market in Germany so that the market
opportunities in Germany can be explored which can help it in expanding its business and also
gaining economies of scale which can help it in gaining a competitive advantage in market.

Define international marketing and differentiate to local marketing
According to American Marketing Association “International marketing is a process
through which the goods or services of a company are made available to the customers by the
way of effective promotion, pricing and distribution of these goods so that they can reach to the
righty customers at right place and on right time.”
As per the views of Kotler, “Global marketing is concerned with integrating or
standardising marketing actions across a number of global markets so that these markets can be
reached and attention of customers in these markets can be gained.”
Thus it can be said that international marketing is related to the process through which the
goods and services can be marketed in international borders so that the customers of these
markets can be made aware about the company goods. This also helps in seeking the attention of
customers in these markets so that the sales of company can increase.
Basis Domestic Marketing International Marketing
Meaning This relates to marketing in the
national boundaries where the local
people are offered with company
goods and services.
When goods and services are promoted
by the way of marketing in more than
one country and also when the business
is dealing internationally.
Area served Only the local areas are targeted. Customers in different countries are
targeted.
Government
interference
It is low. Comparatively high.
Business
operation
In single country i.e. home country. More than one country.
Use of
technology
Only used to reach domestic markets Increased technology use to reach cast
markets.
Capital
requirement
Less Huge

Scope and key concepts of international marketing.
International marketing helps the businesses in promoting their goods and services in
international markets so that larger opportunities which are present in these markets can be
captured which can help in the expansion of businesses. Following are the scope of international
marketing:
 Imports: It helps the businesses in importing products so that they can be resold in the
domestic markets which can help in running their businesses and meeting the demand of
customers related to international products (Demangeot, Broderick and Craig, 2015).
 Exports: It help the businesses in exporting their products in international markets so that
they can increase their sales and also their profits can increase.
 Management of international operations: By the way of international marketing
companies can establish their production or assembly facilities in other countries which
help them in gaining economies of scale.
 Joint venturing: This help in collaboration of businesses so that they can operate together
in market and can expand the business in international markets.
Thus it can be said that international marketing help the businesses in expanding their
businesses in global markets so that they can offer their products and services to customers in
these markets and can capture the opportunities of growth present there. It is important that the
international marketing is oriented to foreign trade, follow guidance to sale their products in
foreign markets and also are oriented to international marketing. Thus in order to market the
business trade internationally it is important that the guidance are followed which can help them
in working legally and ethically in international markets.
Rationale for an organisation to want to market internationally
Rowlinson Knitwear has a rationale in expanding its markets internationally so that it can
gain various benefits which are associated with international marketing which can help in
increasing the sales and profits of company. This also help in improving the performance of
company in market as it are more efficiently deal with the changing market needs and wants
which help in innovating its goods so that high customer satisfaction can be achieved. Following
are the other reasons due to which it is expanding its business in Germany:
 Increase sales: Rowlison Knitwear can by the way of expansion reach to customers that
are present in those markets so that the demand for company goods can be created by the

way of marketing which will help in increasing its sales of school wear and corporate
wear.
 Improve profits: Rowlinson can export its products to Germany by the way of
international marketing and can sell its goods at profitable prices which can help in
increasing its profits.
 Increased innovation: With the help of expansion Rowlinson can innovate its products
like using organic fabric so that comfort and affordability of the uniforms manufactured
by company can increase and also a new demand for the new product can be created in
market (Jean and et. al., 2016).
 Economies of scale: As the labour which is available in Germany is cheaper than UK it
can lower the costs of company manufacturing and can help in achieving economies of
scale so that the profits of company can increase.
 Emerging markets: As Germany has been a place where many businesses are established
the need for corporate uniforms increase which gives Rowlinson the opportunity to
expand its business in Germany so that it can deal with the demand of uniforms in
market.
There can be however certain risks which can be faced by businesses in international market
like:
 Global economy: The global economic factors can affect the business in international
market as these can affect the trade and the amount of tax levied on the operation of these
businesses which can affect their profits.
 More competition: With the expansion in international market the company can face
more competition in the market as there can be many firms present in the market dealing
in the same range of products and services.
 Tariff barriers: The tariff barriers in the international country where the company is
marketing its products can affect its business and can also increase the cost of doing
business in its market.
International marketing entry routes and which one the company should adopt
A business can follow various routes so as to enter the international market so that the
business expansion can successfully take place some of these routes are explained as follows:

 Exporting: It is a way through which businesses sell their products in other countries by
the way of shipping their products which are manufactured in one country and making
them available to the customers of other country. This is a good way by the way which
companies can expand their business and can reach to the potential customers who are
located in other countries. Licensing: It is an official permission by the way of an agreement which is given by a
business to another business which is located in other country so that the licensee
company can use the resources or assets of the licensor company. This helps the licensor
company in reaching to the customers of foreign country by the way of already existing
businesses and delivering them with their products and services (Mathews and et. al.,
2016).
 Franchising: It is another way by which businesses expand internationally by giving the
right to the franchisee to use the know-how procedures, intellectual property, business
model, brand name and the right to sell the products and services of the franchisor
company.
 Joint venturing: It is the way by which a company partners with other foreign company
so that they can together deal with the market and can sell their products in market by
sharing the profits in certain determined ratio.
Rowlinson Knitwear can use the way of Joint venture so as to expand its business in
Germany as with the help of this strategy it can be able to deal with the needs and wants of
customers in Germany in an efficient manner by using the know-how and marketing analysis of
the other company. This is also a cheaper and easier method of expansion which allows the
company to have the benefits of assets and markets of already existing firm.
Key criteria and selection process company should use when entering international market
There are certain criteria or selection process which can be used by Rowlinson so that it
can choose the country where it can expand its business. Following is thekKey criteria which can
affect the selection of country for expansion:
 Environment and market analysis: It is important that the environment and market of the
country is analysed so that the factors affecting business can be analysed which can help
in minimising the negative effects of these factors on company. The use of strategic

management tool like PESTLE analysis can help in analysing the business environment
of the country that can affect its business.
 Analysis of competition: It is important that the competition which might be faced by the
company in market can be analysed so that the marketing strategies can be decided by the
company so that the attention of customers can be gained. This also helps the company in
positioning its products and services in the market so that its sales can be increased
(Navarro-García, Schmidt and Rey-Moreno, 2015).
 Distribution channels: The distribution channel should also be analysed which is
important to gain the supply of raw materials from suppliers and also to reach to the
customers in an efficient manner. It also help in making the supply chain of company
efficient so that it can reach to its customers on time thereby increasing their satisfaction.
 Demand analysis: The demand of company products and services must also be analysed
so that the pricing strategies can be determined along with the level at which company
needs o produce the products and services to meet customer demands.
The market selection process includes following steps:
 International marketing objectives: In this the objectives of international expansion of
company are determined.
 Parameters of selection: Resources available, international business environment, market
situation, degree of competition, political situation etc. must be analysed.
 Preliminary screening: At this the screening of factors affecting business are analysed.
 Short listing of markets: After screening the markets the market with most favourable
situation for company are short listed (Oey and et. al., 2016).
 Evaluation and selection: The short listed markets are evaluated based on cost benefit
analysis and feasibility study and the most favourable market is selected.
 Test marketing: Small areas in the selected market are tested with company products so
that the customer response can be studied.
 Commercial production: After getting a positive response commercial production of
goods are started.

Market entry strategy advantages and disadvantages of each
There are various strategies through which Rowlinson can enter the Germany market so as
to expand its business internationally.
Licensing
Advantages:
 Great opportunity to create passive income.
 Easy entry in international market.
 Risks involved are less.
Disadvantages
 The misuse of intellectual property of company can occur.
 Dependency of licensee on the licensor. Huge competition in existing market.
Exporting
Advantages Opportunity to explore new market demands. Economies of scale can be gained. Better competitive advantage can be gained in domestic market.
Disadvantages
 The exporting cists can be more in other countries.
 Insufficient international market knowledge
Franchising
Advantages Cost effective expansion of business New markets can e captured and market can be expanded
Disadvantages
 Huge capital investment is involved
 The legal formalities can increase company costs
Joint venture
Advantages It is an easy method of capturing market by existing markets Risks and cost are shared by both parties

Disadvantages There can be conflicts between the involved parties. It can be difficult to manage the business and workforce of both companies
Conclusions and recommendations on how and why the company should enter the international
market.
From the above discussion it can be said that Rowlinson Knitwear can expand its business
in Germany by the way of joint venture so that it ca partner with an already existing business in
Germany. This can help the company in gaining a better idea about the market of Germany and
the ways in which it can approach the market. This is also a cost effective and easy method with
the help of which company can use the resources and already captured markets of the business so
that its products can be marketed in an efficient manner. Following are some recommendations
which can be followed by the company during joint venture:
 The profit margins that will be shared by companies must be determined (Schmid,
Grosche and Mayrhofer, 2016).
 Effective leadership and management strategies can help the company in working
together in an efficient manner.
 It is important that the market is analysed so that the customer preferences and tastes can
be analysed.
Key arguments in the global vs local debate
It is said that global businesses are more exposed to market and are able to innovate their
products in an efficient manner so as to meet the demands of customers in the international
market which can help it in gaining a string brand reputation in the market. Global marketing
also allow the businesses to use the highly advanced technologies which are available in the
market so that better products and services can be produce that can help in its expansion. Also by
the way if international marketing the emerging markets and the changing customer needs can be
effectively met that can help in increasing company sales and profits (Surugiu and Surugiu,
2015).
Local marketing on the other hand restricts the market of business to a limited number of
customers and can create a barrier on the growth and expansion of business. The company can
also not be able to gain better economies of scale if they do not expand in international markets
where resources can be available at cheaper rates that can help in decreasing company costs and

increasing its profits. Also the demand of only local level customers can be met by the way of
local marketing which restricts the ability of company to grow and increase its sales.
Product, pricing, promotional and distribution approach differ
The strategies which are used by business while dealing in different international markets
differ from each market depending on various characters which affect the demand and supply of
the goods and services in market and also affect its price, promotional policy and distribution
channel. The market demand in each market affect the pricing policy of the company so that the
customer demand can be met in a profitable manner so that high customer satisfaction along with
high company profits can be achieved (Zhong and et. al., 2016). The demand of customers and
the target market of company in the market also affect its promotional policy so as to reach to the
customers and create a demand in market. The strategies are formulated in such a manner that
the target customers can be reached and they can be encouraged to purchase company products.
Distribution channels depend on the supply chain in the market so that the company is able to
reach to the right customers at right time and at right place so that the sales of company can be
increased. Thus the strategies which are chosen by the company differ in different markets so
that the company profits can be increased and demand of its products and services can be
increased.
International marketing approaches
There are some approaches which can be used by the companies so as to expand their
businesses in international market so that they can achieve their objectives and can gain the
competitive advantage in the market. These approaches help the businesses in internationalising
their businesses in a particular direction by following a certain approach thorough which they
enter an international market and price, promote and distribute their products which can help in
satisfying the demand of customers in those markets. These approaches also help in determining
the way in company will expand their business and promote their products and services so that
the customers can be attracted and growth and development of company in market can take
place. Following are the two approaches which can be used by Rowlinson Knitwear so as to
expand its business in Germany:
 Centralised approach to international marketing: In this approach the power of taking
decisions in running the business in all the international branches of a business lie in the
hands of top management level which means that there is control of manager on the

functions of all the branches of business. The marketing team of headquarters of the
company make all the decisions which are associated with the marketing strategies and
policies of company. By this approach the main focus is on the development of in-house
capabilities and scalable processes. This help in ensuring that the control of marketing
department on the market functions of all its branches. Also with this approach a standard
marketing procedure which is decided by the top level authorities at the headquarters os
followed which help in increasing the uniformity of company functions (Björk, 2017).
 Decentralised approach to international marketing: In this approach each and every
branch of the company which are located in different nations are free to make their own
marketing decisions depending on the market needs so that the customer demand in the
market can be efficiently fulfilled. This approach helps in taking fast decisions so that the
need of market can be effectively fulfilled and the customers can be reached by effective
marketing strategies. The focus of this approach is on supporting and motivating the local
marketing staff and representatives to formulate marketing strategies and come up with
innovative ideas so that the local markets can be efficiently captured (Hoppner and
Griffith, 2015).
Rowlinson can use centralised international; marketing approach so that unique and
standardised marketing strategies can be followed in its branches in UK and Germany which can
help the management in taking effective decisions related to marketing. This will also help the
management of company in having more control over the activities of its international branches
which can help them in reaching to their target customers.
Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach.
Organisations carry out their businesses with different orientations based on the nature of
operations which are carried out by businesses, their products and services which determine their
suitability to the foreign market and their customers. The attitude of company’s involvement in
international marketing process is called international marketing orientation. This help in
determining the ways in which strategic decisions are made in the company and the relationship
with the headquarters and its subsidiaries:
 Ethnocentric orientation: In this the practices and policies which are formed by the
company operating in the home country are standardised and all the subsidiaries have to

follow these policies. In this the subsidiaries are not allowed to change their strategies so
as to meet the needs and wants of customers in foreign market and they have to follow
the unique strategies. In this orientation the management of the parent company think
themselves to be more capable of forming policies than the managers of their subsidiaries
(Pezzutto and et. al., 2018).
 Regiocentric orientation: In this approach the company finds similarities based on the
economic, cultural or political factors so that the customers of these places can be
satisfied with the same strategies based on the similarities in their needs and wants.
 Geocentric orientation: This approach encourages global marketing and the whole world
is considered as a single market. With this approach the companies follow standardised
marketing strategies so as to reach to their customers. However, before launching their
product in market a complete market analysis and the customer requirements is done by
marketers of company.
 Polycentric orientation: In this approach different branches of company follow different
approach to market their products so as to fulfil the needs and requirements of the
customers in accordance with their tastes and preferences. This approach help each
branch to make their own decisions so as to deal with the market demand (Samiee,
Chabowski and Hult, 2015).
Basis Home orientation International orientation
Market
perception
It focuses mainly on the
similarities between the foreign
market and domestic market to
expand their business
internationally
The whole world is considered as a
single market.
Market strategy Domestic strategy gets extended in
international market
Globally standardised strategy is
followed.
Advantages Less efforts are required and is
also cost effective.
Economies of scale can be achieved.
Disadvantages Limited scope of expansion Standardised processes can affect
different market situations.

Recommendations for the company
Rowlinson Knitwear can use the approach of ethnocentric orientations so that standardised
marketing decisions are taken from the home branch of the company. This can help the company
in effectively monitoring and controlling its business in Germany and the operations by
following standard riles can become easier. This will also help the company in managing the
functions both nationally and internationally in an efficient manner.
CONCLUSION
From this report it can be concluded that businesses in order to expand their market needs
to choose international marketing which can help them in achieving a large number of benefits
and can also increase their profits. It is important that before expanding their market the
international markets are analysed which can help in evaluating the opportunities and risks which
are present in the market. Also the company can gain economies of scale by the way of
international marketing which can help in increasing their profits and gaining a competitive edge
in market.

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