International Marketing: Strategies and Entry Routes

This document provides an overview of international marketing, focusing on the concepts, strategies, and entry routes. It discusses the difference between local and global marketing and explores the scope of international marketing. The document includes a case study on The Future Practice Ltd, a UK-based furniture company, and its plans to enter the international market.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Organisation and current market..................................................................................................3
Range of sources to define international marketing and difference between local and global
marketing.....................................................................................................................................5
Scope and key concept of international marketing......................................................................6
Rationale......................................................................................................................................7
International marketing entry routes............................................................................................7
Key criteria and selection process while entering into international market...............................8
Market entry strategies...............................................................................................................10
Difference between global and local marketing........................................................................11
Debate on global vs local...........................................................................................................12
How does Product, pricing, promotion and distribution approaches differ when use of variety
of international markets.............................................................................................................12
International marketing approaches...........................................................................................13
Recommendations......................................................................................................................13
Compare home and international orientation and ways to assess competitors.........................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
In the recent time companies are facing huge competition and marketing is the only way to
attract new buyers to remain in competition for longer duration (Kotler and et.al., 2018). Small
firms aim to enter into global market to gain more profit and to sustain in market for longer
duration. International marketing supports business in raising their brand reputation and raising
value of market share as well. Present study is based on The future practice Ltd. This is small
scale local firm of UK that offers furniture and related services to consumers of United
Kingdom. Current assignment will explain concept of international marketing. It will describe
difference between local and global marketing concept. Furthermore, study will explain various
market entry strategies alone with their strength and drawback. Products, pricing strategies of the
firm that aims to enter into new market will be described.
TASK
Organisation and current market
Business background
The Future Practice Ltd is the private limited firm of United Kingdom that provides
furniture in the local area of UK (Hult and et.al., 2018). It designs architects and furniture’s for
corporate clients. Firm treats its employees well and always implement innovative ideas that
support organisation in managing its operations well and generating profit. It always focuses on
providing professional interiors to the persons hence they do not compromise with designs.
Company has employed 67 employees in its office and has generated 13 million revenues in the
year 2019.
Current market
Furniture industry of UK is growing with rapid speed. Last year it has generated
86239Million revenue and it is expected that this year it will grow by 0.7%.

Figure 1: growth of furniture sector of UK
(Source: UK HOME FURNITURE MARKET - GROWTH, TRENDS, AND FORECAST (2020 -
2025), 2020)
UK has become the largest home furniture country across the western Europe and also it is
the third largest importer of furniture. In the year 2016 this industry has contributed around
8.9billion in GDP that was equal to manufacturing sector. Hence this sector is growing well and
companies have high scope to grow well in international market as well. IKEA , Bed bath, DFS
furniture Plc are the big competitors of The Future Practice Ltd (Samiee and Chirapanda, 2019)

(Figure 2:UK HOME FURNITURE MARKET - GROWTH, TRENDS, AND FORECAST (2020 -
2025), 2020)
Range of sources to define international marketing and difference between local and global
marketing
As per the view of ….international marketing is the process that is used by companies to
distribute its goods and services in more than one nation. The main objective of international
marketing efforts is to generate more profit and sustain in market for longer duration. ….argued
that international marketing is the marketing efforts to analysing needs of foreign consumers and
satisfy their needs by serving them best. Companies have to use marketing mix strategies to
make contact with large audience globally (Larimo and et.al., 2018).
Difference between local and global marketing
Domestic marketing can be described as efforts that are made by marketers in home
country only to generate sales in local areas. This is the tool that focuses on single set of
competition and it has to make its marketing efforts according to economic and social condition
of one nation. As The Future Practice Ltd will not have to face any language issue while
promoting brand locally hence it gives better results to the firm. It is easy for firm to analysing

local trends and make arrangement accordingly so that consumer demand can be met
successfully (Gomes and et.al., 2017).
On other hand global marketing is different from local marketing as enterprises have to
sell products globally hence need to make such marketing efforts that may help in dealing with
international consumers properly. This is kind of complex marketing technique because
understanding needs of different buyers is quite difficult and also when The Future Practice Ltd
aims to go internationally and for that enterprise needs to spend huge capital in marketing so that
it can build connection with international consumers (Dinner, Kushwaha and Steenkamp, 2019).
As taste of each person is different hence in the international marketing The Future Practice Ltd
may face issue in understanding preferences of potential buyers. Apart from this changed laws
also creates problem in making marketing efforts successful.
Scope and key concept of international marketing
International marketing can be defined as penetration of business in new and potential
market in other country. In such kinds of marketing companies are required to offer customized
products so that consumers can get products as per their requirements which make them positive
towards the brand. In order to invest in international marketing. The Future Practice Ltd will
have to invest money in conducting market research so that physical existence of furniture sector
of new market can be analysed well and customer engagement can be raised (Ji, Dimitratos and
Huang, 2016).
International marketing has huge scope as The Future Practice Ltd can get benefit of
global expansion through such kind of activities. This is also beneficial in sales promotions
because firm can convey benefit of its products to the global consumers which may make them
ready to buy its products hence sales of The Future Practice Ltd can be boost up. This has huge
scope in raising customer engagement and also building endurance. When firm inform to people
about the features and listen their views or needs then The Future Practice Ltd can provide them
satisfactory goods and services that may help company in engaging people and make them
positive towards the brand (Saleh, 2016). International marketing has benefit of developing
understanding about market and trends that gives advantage to gain competitive advantage in
market. Though there is huge risk involved in international marketing such as fluctuating laws
and economic conditions but making direct connection through social sites give positive
outcomes and firm can get success in market.

Rationale
The Future Practice Ltd is the small scale firm that always wants to gain high profit in
market. Being a small firm it faces many issues in sustaining in market for longer duration hence
to gain more profit The Future Practice Ltd is planning to enter into international market.
Generating huge sales is the main reason of internationalisation of company. If enterprise wants
to raise its capital or generate sales, then it has to enhance its range of consumers that is possible
when it goes internationally (Kotler and et.al., 2018). As it helps in making connection with large
audience and to make them ready to spend money in its goods and services. The Future Practice
Ltd can raise sales by going into global market. Free market, market needs, technological
advancement, economic integration re the reason that drive company into international market.
Make connection with foreign distributors is another rationale of going internationally, as
enterprise like to get raw material from such providers that offers them high quality raw material
that is possible when firm enter into new market (Top reasons to enter International Markets,
2020.). This will help The Future Practice Ltd in knowing about new companies from where it
can get better equipment’s to manufacture better furniture. High grow rate is another reason of
The Future Practice Ltd to go internationally, as it will help in raising the potential growth rate of
business unit because it will increase number of consumers of firm. This will help in dealing
with more corporate clients and getting orders for new furniture hence this is better for the
growth of organisation to great extent. Attracting investors is another reason of going into new
market, as investors like to invest in business that seems more profit generating. By this way
investors can gain more return on their investment s hence by entering into new market The
Future Practice Ltd can raise its visibility to investors which will help the organisation in getting
more funds for development (Hult and et.al., 2018).
International marketing entry routes
There are various routes through which The Future Practice Ltd can enter into new market
and can run its operations well. But there is need to opt correct option that may business in
gaining success in market and establishing branch in new country successfully.
Joint venture is considered as route in which The Future Practice Ltd being a small firm
can make joint venture with other local firm of new market of Australia (Larimo and et.al.,
2018). Joint venture of both these companies will help The Future Practice Ltd in understanding
preferences of local areas consumers and structuring business in such manner so that operations

can be run properly. One of the great benefit of this strategy is that it gives information about
local market of new location hence business can be managed accordingly. On other hand The
Future Practice Ltd can control over share cost by coming into joint venture with other firm. This
helps in reducing chances of failure in international market of Australia and also help in
controlling over investment cost as well. Profit and loss can be shared by both these firms as per
their shares in business (Gomes and et.al., 2017). But chances of occurring conflicts in both
companies are high because both these business have different culture and management
perspective hence management team will not accept conditions of The Future Practice Ltd.
Mistrust between employees and culture clashes may make it unsuccessful.
Piggybacking is another route that can be implemented by The Future Practice Ltd to
move into Australian market. In this kind of tactic firm may involve with non-competing firms
and both these firms can sell products as cross selling items. That means The Future Practice Ltd
can sell products of other firm in UK and other firm will sell products of The Future Practice Ltd
in Australia. This is the less risky method and help in first developing brand image in new
market and then make more investment. Little investment is required to manage operations in the
new location. But it is also based on trust, if there is no trust between both involved companies
then partner firm will not support in selling cross products in new market (Dinner, Kushwaha
and Steenkamp, 2019).
The Future Practice Ltd should use joint venture option as it will help in controlling over
cost and profit both. Firm needs not to spend whole capital as if it fails to generate profit then
also loss will be shared by other firm hence it is quite inexpensive but profit generating route.
Key criteria and selection process while entering into international market
Entering into new market is the big decision hence it needs to be made carefully by The
Future Practice Ltd. Key criteria for selecting the adequate international market is conducting
environment analyses through Pestle analyses. Market analyses must be done and also there
should be competitor analyses that help in knowing chances of getting success in new market.
Distribution channels must be evaluated and demand analyses must be done. If all these criteria
are met, then only The Future Practice Ltd needs to take decision to move into Australian market
(Saleh, 2016).
Selection process

Figure 3: selection process
(Source: Process to select International market, 2019)
There are various phases that must be implemented while selecting the international
market.
 Marketing objective: The Future Practice Ltd needs to first decision is objective of
international marketing so that expansion decision can be taken accordingly.
 Parameters for selection: After framing objective The Future Practice Ltd needs to look
upon the parameters such as environment condition, market situations etc (Kotler and
et.al., 2018).
 Preliminary screening: Once parameters are set then The Future Practice Ltd needs to
evaluate the market potential of new market through Pestle, competitive analyses etc.
 Shortlisting of market: Then enterprise should shortlist the various market in which it can
enter.

 Evaluation and selection: After shortlisting evaluation of each market must be done and
on the bases of evaluation result final judgement of entering into particular international
market must be taken (Gomes and et.al., 2017)
 Test marketing: Before investing capital to move into international market, The Future
Practice Ltd needs to use test marketing system, if people of new market are taking
interest in its products then only it should make investment
 Commercial production: At last, The Future Practice Ltd needs to operate business in
new market successfully.
Market entry strategies
Market entry strategies can be termed out as the planned distribution and delivery
technique of good and services in terms to target new market. In services such as import and
export this referred as creation, establishment and management of contracts within foreign
countries (Larimo and et.al., 2018). These are outlined as-:
1. Exporting- This is termed out as sending commodities produced in one country to sell them in
another country. It is termed out as the low risk strategy that find out by business to more
attractive.
Advantage-:
 In export marketing, goods sent to abroad as per the procedures that framed out by
exporting country as well as importing country.
Disadvantage-:
 This is more complicated to domestic marketing due to international restrictions, lengthy
procedures and formalities.
2. Licensing as entry mode- It allows foreign firm to operate working with use of technology,
company strategies and trade markets to produce the home company commodities under specific
terms (Saleh, 2016). It is one of the effective entry strategies as this allow foreign entities to
legally manufacture and sell entity commodities.
Advantage-:
 Fast entry, low cost and low risk.
Disadvantage-:
 This usually takes lot of efforts and determination to identify right licensee. Under this,
poor plan of action can damage the success of commodities.

3. Joint ventures- It is termed out as partnership among domestic and foreign entities (Samiee
and Chirapanda, 2019). In this, both partner invest money, share ownership and also shares the
control of the venture. This is called out as one of most popular model of entry as this allows two
businesses to sell product and services.
Advantage-:
 The one of the common advancement of joint venture is this allows access to new
markets and distributor networks.
Disadvantage-:
 Major issues that joint ventures are very typical to integrate into global plan of action that
includes substantial cross border trading.
Merger & acquisition- It is plan of action that defined as expansion strategy (Samiee and
Chirapanda, 2019). This is defined as corporate plan of action that deals with buying, selling and
combining firms with aim to accomplish rapid growth. These are outlined as-:
Advantage-:
 Enhancing the market power.
 Optimum utilisation of resources.
 It leads to minimise the risk.
Disadvantage-:
 The another disadvantage of merger can be tough to communicate and coordinate among
the employees of different culture.
Difference between global and local marketing
Global marketing defined as carrying out operational functions from entities headquarter
while selling commodities or service world-widely in different countries.
In addition to this, international marketing termed out as establishing subsidiaries within
prospective of local market of different countries to implement suitable marketing plan of action.
Thus, differences are outlined as-:
Basis Global marketing International marketing
Meaning It is defined as application of
single marketing plan of action
within world wide market for
commodities and services.
This refers as firm incursion
into the prospective market of
different country that directly
engaging in the local

marketing environment.
Offering of services and
commodities
It has standard commodities
(Samiee and Chirapanda,
2019).
This has customized product
and services.
Marketing This is defined as cross
cultural marketing in which
personnel employed at
company's head office.
It aids to native marketing
employees within target
foreign markets.
Market Research and
development
It needs intense market
research due to firm physical
absence within global market.
This undertake less research
and development. In this, firm
has physical existence within
international market and can
analyse the market scenario.
Debate on global vs local
The one of the core dilemma of global marketing can be termed out as selection among
selling the same commodities across all boundaries and to execute local marketing plan of action
in terms to respond to regional differences.
 In global marketing, the firm offers the exact product and service offerings to customers
within all country where it operates.
 Marketing staff of the enterprise employs global marketing plan of action at works at the
firm head office and also quite different among one another in relation to age, gender and
nature of work.
 In the global marketing, each enterprise plan of action is devised and implemented from
the corporate headquarters (Samiee and Chirapanda, 2019). On the other hand, in
international marketing the efforts of marketing are usually generated within domestic
markets.

How does Product, pricing, promotion and distribution approaches differ when use of variety of
international markets
International marketing mix plan of action can be termed out as use of different
marketing instruments to accomplish positive financial results by firm that are operating over
international and global markets (Samiee and Chirapanda, 2019). Therefore, these are incisive of
product, price, distribution and promotion etc. Therefore, international marketing mix has
different approaches as are-:
 Product- In order to expand business activities at the international level entity must use
innovative concept in designing of product. This will aid to attract large number of
potential customers within market. With the use of effective strategies, the product can be
sustainably reach within international markets.
 Promotion- With the international product design the entity can able to promote product
with help of varied advertisement strategies pf traditional and modern approaches. By the
use of effective promotion, the enterprise can able to expand their commodities and
services within international market.
 Place- This is the element that defined as to distributing the product and service to
customers at the right place at the right time (Samiee and Chirapanda, 2019). In addition
to this, the distribution strategies of each country can be different as business operates
due to profit margins and cost of transportation.
 Pricing- This is defined as component that is different from complex task. In addition to
this, the internet has created varied challenges as customer can view global prices and
purchase the items around the world. It has enhanced the level of competition with it
pricing pressures.
International marketing approaches
There are approaches that are outlined in following context as are-:
 Centralised approach- It is defined as marketing program that aids to make the most of
the marketing decision. This helps to plan and execute the marketing decision effectively.
 Decentralised approach- This is approach that defined as to support and motive the local
marketing and representatives.

Recommendations
In order to undertake international marketing successfully, the entity needs to undertake the
better market analysis so that things can be undertaken in effective and efficient mode. With the
use of effective distribution plan of action, the product and services can be distributed effectively
within market. In order to expand commodities at international market successfully, the entity
needs to adopt suitable innovative method so that successful innovation can be done.
Compare home and international orientation and ways to assess competitors
International and national business totally different from each other, international
business required huge amount of finance and times to show presence for the The Future
Practice Ltd. It s necessary for the company to make proper strategies to run their business both
interpersonally and locally (Lordkipanidze., 2018). On the basis of the quality, prices, production
volume and competition everything is different in both international and home.
Company the local market does not feel high competition because there are very limited
competitors who are giving them a high competitors but on the international level The Future
Practice Ltd company is facing high pressure because number if the competitors is more as
compare to the local. In term of finance The Future Practice Ltd have to provide better quality
products and services to the customers to stay I the competition because they cannot
compromise with the product quantity and quality on the international market because there
are many competitors who can provide better quality in their products. If company want to
stay in the competition then they have to maintain their quality and also have to increase their
production in the international market. In the local market they can compromise with the
quality and by increase the product quality because they know their local customers
requirement because they start their business from their home country. In global marketing, the
firm offers the exact product and service offerings to customers within all country where it
operates. Marketing staff of the enterprise employs global marketing plan of action at works at
the firm head office and also quite different among one another in relation to age, gender and
nature of work. In the global marketing, each enterprise plan of action is devised and
implemented from the corporate headquarters (Boso, Oghazi and Hultman., 20170. On the other
hand, in international marketing the efforts of marketing are usually generated within domestic
markets.

International market has huge to the The Future Practice Ltd as compare to the home
business because buyers buy products in the bulk and this is beneficial or the company
because they can earn more profit on the international level but local market It is totally different
because clients are fixed and most of them times company have to give their product and
services to the clients in less price to stay in the competition and they also take product in less
quantity as compare to the international market. There are some benefits as well on the local
market like marketing in he international market is import and before expanding business in
the international level company have to research the market and there are many barriers which
does not let company expand their business like language barriers, number of competitors,
behaviours the people and their needs and demand, company also need proper research of the
market etc. are the barriers. Which create problems for the The Future Practice Ltd company.
CONCLUSION
Hereby, it can be concluded that International marketing termed out as multinational process
of planning and executing the conception, put promotion and aids to distribute ideas to create
exchange that helps to satisfy individual and organisational objectives. The present report is
based on small business enterprise such as The future practice Ltd. This is small scale local firm
of UK that offers furniture and related services to consumers of United Kingdom. Currently,
assignment has defined concept of international marketing to undertake application that satisfy
the varied need and wants of different individuals. Also, the difference has been identified
between local and global marketing concept. Furthermore, study has outlined the various market
entry strategies alone with their strength and drawback. Also, Products, pricing strategies of the
firm has been defined to take entry into new market.

REFERENCES
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Hult, G. T. M. and et.al., 2018. Addressing endogeneity in international marketing applications
of partial least squares structural equation modeling. Journal of International
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Ji, J., Dimitratos, P. and Huang, Q., 2016. Problem-solving dissension and international entry
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Kotler, P. and et.al., 2018. Marketing management: an Asian perspective. Pearson.
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Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Online
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https://howtoexportimport.com/Process-to-select-International-market-4576.aspx >
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http://hafezicapital.com/international-market-entry/top-reasons-to-enter-international-
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UK HOME FURNITURE MARKET - GROWTH, TRENDS, AND FORECAST (2020 - 2025).
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