Unit 40 International Marketing

This document provides an introduction to international marketing, including the scope and concept of international marketing. It also discusses the rationale for marketing internationally, the key criteria and selection procedure for entering international markets, and the opportunities and challenges presented within international marketing.

Unit 40 International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Scope and concept of international marketing.......................................................................1
P2. Rationale for it to want to market internationally as well as distinct routes organisation can
can use to market.........................................................................................................................3
M1. Opportunities and challenges presented within international marketing.............................4
TASK 2............................................................................................................................................5
P3. Key criteria as well as selection procedure............................................................................5
P4. Market entry strategies with advantages and disadvantages.................................................6
M2. Application of market evaluation criteria as well as entry strategies with
recommendations.........................................................................................................................7
D1. Critical evaluation of international market...........................................................................8
TASK 3............................................................................................................................................8
P5. Overview of key arguments in global versus local debate....................................................8
P6. Investigation about the ways product, place, pricing along with promotional distribution
approach differs in international context.....................................................................................9
M3. Evaluation of context as well as circumstances wherein client organisation should adopt
approaches of global and local...................................................................................................10
M4. Determining the ways to adapt marketing mix of client entity in distinct international
markets.......................................................................................................................................10
D2. Critical evaluation about the ways marketing mix is applied to diverse international
contexts......................................................................................................................................11
TASK 4..........................................................................................................................................11
P7. International marketing approaches.....................................................................................11
P8. Comparison among home and international orientation as well as ways to assess
competitors.................................................................................................................................12
M5. Evaluation of marketing approaches as well as competitor analysis.................................13
D3. Recommendations on the ways organisations should be structured for maximising
opportunities within international context.................................................................................13

CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is a concept wherein activities are undertaken by organisational members to
promote purchase addition to selling commodities (Armstrong and et. al., 2015). International
marketing is characterised as concept of applying marketing principles for meet varied wants of
individuals residing outside borders of country. In other words, international marketing is
exchanging commodities or services among distinct national markets that include buyers an
sellers. Through international marketing, business concerns attract customers from distinct
countries and perform activities to boost brand reputation. To develop knowledge for
international marketing concept, Davison Canners company is selected. The entity operates
business functions to provide fruits, jams as well as fruit components to the market of UK. The
headquarter of the company are at Partadown, UK. The report covers aspects of understanding
ways marketing contributes towards business strategies in international context. It further
involves selection process, distinct market entry strategies, arguments for local versus global
debate, marketing mix elements and international marketing approaches.
TASK 1
P1. Scope and concept of international marketing.
According to Baker and Saren (2016), International marketing is termed to the
performance of organisational activities that are framed to plan, manufacture, price, promote
along with distributes products and services to users residing across national geographical area in
order to make profit. It comprises searching and meeting global consumer demands and
necessities better than rival firms by coordinating activities with in global environment
constraints.
As said by Jean and et. al., (2016), International marketing is concerned with establishing
manufacturing facilities beyond the sea addition to coordinating merchandising plan of action
across the world. It applies distinct marketing laws and covers multi purpose procedures to plan
and execute concepts, prices, promotion together with distributing ideal commodities for
establishing exchanges that satisfy individual along with business objectives.
Scope of international marketing
International marketing is generally said to business unit performance in which diverse
range of organisational products are exchanged between nations for earning profits. It is also
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renamed as global marketing which has earned great scope in current modern environment.
International marketing having diverse scope are analysed underneath:
Imports: The products which are brought inside the edge of one nation from some other
with the intention of usage or selling is termed to imports. Business concerns purchases
commodities for reselling to potential clients within domestic market area. In addition,
organisation such as Davison Canners also imports raw materials or finished products for
creating as well as making improvements within their key production line.
Exports: It is popular aspect of international business in which commodities
manufactured in one nation are shipped or transferred to another ones for further selling as well
as trading purposes (Berthon and et. al., 2012). Apart from this, it is also helpful in generating
more revenues along with grabbing opportunities to expand market shares at international level.
Selected company can promote their products through social media as well as abides rules of
both home and foreign country when marketing products internationally so to earn profits along
with utilising them for making export payments through covering costs connected with
development of product.
Wholly owned manufacturing: As per the scope, business having long term interest
within international market can launch their own manufacturing facilities. For this, factors like
cost differences, policies of political authorities as well as trade barriers encourages establishing
production facilities at international level in order to gain huge profitability together with
opportunities for growth.
Key concepts of international marketing
In modern era, multiple number of concepts are connected with international marketing.
Following are the analysis of few concepts:
Domestic marketing: As per the concept, targetted market audience are those
individuals who resides within home country. Through such international marketing concept,
Davison Canners collects data about behaviors of market audience towards organizational
commodities and formalizing perfect strategy for marketing products within specific locality.
International business: One of successful international marketing concept, that involves
independent creation as well as selling commodities for each market. With this concept, selected
firm cuts costs connected with exports and imports as well as operates effectively in various
countries by considering itself as individual unit.
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P2. Rationale for it to want to market internationally as well as distinct routes organisation can
can use to market.
Davison Canners is small business units that mainly deals in providing fresh fruits
together with components like fruit compotes, sauces, processed apple products, fillings and
wide desserts range. It is mainly situated at London, UK for delivering best quality of eatables.
The company is awarded with Food Manufacture Excellence Awards through which it has
successfully made good brand image within local market of UK and identified the need for
expansion within Asian Countries (Chung, Lu Wang and Huang, 2012). It is only possible
through understanding and implementing systematic addition to proper ways for entering inside
such market. It will provide diverse opportunities to business together with huge difficulties and
threats. So it is very important for existing business concern to expand the workings in order to
increase proportion of current customer base, market share and profit margins. When Davison
Canners enter inside international market then they will enjoy various advantages such as
grabbing attention of wide market audience, competition with local rivals and more growth scope
through opening stores or outlets of firm. In addition, entering within international market will
provide growth opportunities that will impact positively on financial position and status of
respective company. It will assist Davison Canners to keep the stakeholders satisfied and
enhancing market shares. Along with this, the institution can innovate and launch new products
after carefully ascertaining demands, preferences, wants and requirements of consumers. Thus, it
is more important for the administrative authorities of chosen firm to expand business operations
at international level where they can avail wide opportunities.
Various international marketing routes
An organization can expand its operations in international market fro attracting huge
customers through selling high quality products (Fletcher and Crawford, 2013). When business
plans to go internationally, they needs specific routes so that they can get clear path or directions
to achieve success. In context to Davison Canners, they produces and provides commodities
made from fresh fruits that can be preserved for huge time and are totally organic. For making
the business international, some routes are as discussed:
Direct routes: It covers all the networks that helps in making direct contacts with
customers to sell the products effectively. In current era, managers of Davison Canners have
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competence fro adopting channels that involves trade shows, distributing catalogs on emails,
organizing exhibitions, sales representatives addition to offering website deliveries for making
direct contacts with targeted users. In addition, through this route, company can make good
reputation as well as retain its clients for huge time through delivering quality products.
Indirect route: According to this route, business concern first makes contractual
statements with third party and later hand overs responsibilities to them for influencing behavior
of international customers. The third person or party posses full knowledge together with
understanding about demand of products that customers make for satisfying their problems. In
return, these parties charge extra commission from the entity according to sales volume. Some
indirect routes are:
Alliance partners: These are the groups that have characteristic of small size but have
huge powers in influencing international customers. It is quite effective method and when
Davison Canners will use it they will be benefited in getting accurate assistance about business
initiatives along with framing influential entry win international market.
Channel Partners: The another indirect route that are renowned as business units having
technical expertise for influencing consumer mentality as well as help them to determine
advantages or uses of products offered by the entity (Ghauri and et. al., 2016). These may be in
type of consultants, vendors, technological deployment consultancies, distributors as well as
value added re sellers. Using this route will help selected entity in getting various assistance to
go international.
Thus, from above mentions routes, management authorities of Davison Canners is
recommended to go with indirect route of channel partners as such routs involves people having
expertise and sound knowledge of existing market needs and emerging trends within the business
sector. Hence, this route will also suggest the company about methods to be mold within
manufacturing products and adding new flavors in product line so to enter in international market
and beat the competition.
M1. Opportunities and challenges presented within international marketing
International marketing provides various opportunities to business along with some
challenges (Gillespie, 2015). Talking about opportunities, Davison Canners while marketing
internationally can earn huge returns on investment, generate optimal economies of scale,
increase market size and attains strategic alliances. With these opportunities, the company can
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gain various benefits so that they can sustain in the market for long duration, at same time, these
opportunities has disadvantage that they are hard to find and once find, it is difficult to adopt
them that makes critical situations for Davison Canners.
In context to some challenges that are in front of selected entity while marketing
internationally are taxes and duties imposed by government of other countries, bureaucratic rules
and regulation among host and guest entities, considerable diversities, exchange rates variations
and ethics challenges. These challenges when analyzed and overcome, Davison Canners enjoys
benefits of keeping the activities working in prompt manner. In contrary, challenges causes
various issues to the business due to which their operational activities gets hampered.
TASK 2
P3. Key criteria as well as selection procedure.
As the external environment is generally dynamic in nature, it creates difficulties for
Davison Canners to operate activities of the business in international market. For this, it is
essential to carefully and properly analyze as well as choose effective ways wherein the company
can easily analyses hurdles and get over from them. To operate within international market,
administrators of selected firm should have positive work environment where manpower is
motivates and ready for accepting all challenges that may arise in international marketing (Kotler
and et. al., 2015). Criteria to select international market to enter are as follows:
Proper infrastructure: When business administrators are planing to enter within Asian
Countries, they then are required to analyze and understand needs of proper infrastructure that is
required for their new premises as well as location where they are planning to operate. It is very
crucial to select international market according to existing infrastructural facilities such that
company can produce quality commodities efficaciously.
Resource availability: The another important criteria that must be considered by entities
when entering towards international market. The availability of resources in form of assets,
funds, manpower, technologies and so on must be considered by Davison Canners while taking
step towards global market.
Laws and regulations: Different countries have imposed distinct regulations and
legislation. These are imposed as per the market conditions along with business environments.
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While selecting which international market to enter, selected entity must follow such criteria so
that they completely gets indulge in working effectively in international market.
Selection process
Selection is the term to choose particular option from wide alternatives. Following is the
selection procedure that should be used by managers of Davison Canners when considering
international market for entrance.
Setting global marketing objectives as well as aims: Herein, management team of
company need to set objectives and aims so to expand the business operations in international
market. In context to Davison Canners, managers sets the objective to expand sales volume as
well as levels of profits for expansion.
Evaluation alternatives: As objectives are set, then identification of wide alternatives
for setting business are done. It further help in evaluating alternative options in proper manner.
Preliminary screening: As options are evaluated, nest is to screen or scrutinize each
option so to assist in best decision. Herein, factors like economy structure, population size,
consumer behavior and per capita income are properly analyses while screening expansion
options.
Analysis and Selecting best destination: When factors are screened, marketers short list
some for further evaluations (Parry, 2016). Herein, cost benefit addition to feasibility are
properly analyzed and accordingly best place to enter is selected. In context to Davison Canners,
the best destination to enter is the market where the company will gain maximum responses and
product preferences.
Testing: At such selection stage, organization test the market by selling some samples of
its products within selected geographical location. The managers of selected company develops
insights about perception of targeted audiences and accordingly offer them products.
Commercial production: When test outcomes are found and analyzed, then top
administrators of Davison Canners produces commodities in bulk quantity in order to execute all
the operations within selected international market.
P4. Market entry strategies with advantages and disadvantages.
Market entry strategies are the ways through which business concern can enter into
foreign or international market. These are planned distribution as well as delivery mechanisms
for commodities into new target market. In other words, market entry strategies are creation,
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establishment as well as management of contracts with other nations (MARKET ENTRY
STRATEGIES. 2018.). In context to Davison Canners, to expand its operations and workings can
use some market entry strategies. Some of the strategies for entrying into new market are as
elaborated:
Partnership: It is a type of contract wherein two or more individuals collaborates to
make relationships in order to serve particular market area. It is a strategy through which
business unit expands its functions for selling commodities to gain competitive advantages.
Davison Canners managers by choosing the strategy can expand internationally. It is useful
within those market where both business as well as social cultures are different from native ones
as local partners helps in making more contacts,k bringing market knowledge and wisely chooses
customers. The advantage of partnership is that a proper agreement is made among parties that
include profit and loss shares, incomes and expenditures and capital employed that reduces
conflict situations. In contrary, disadvantage of such strategy is that situation lie dominance
among parties may exists due to local entities as well as having more privileges in local market.
Licensing: In this strategy, one business unit grants authority to another business through
issuing license for temporarily usage of intellectual property rights as well as other assets
(Ringle, Sarstedt and Straub, 2012). It is considered as one of fastest medium to expand at
international market of Asia. License is provided for production as well as marketing purposes.
Selected company will use it only when the other company have large market share wherein
Davison Canners wants to enter. The advantage of it is that it provides huge opportunities to
licensee business to generate passive income by entering into market. At same time, the company
have to more dependent on licensor and will create competition among licensee and licensor with
domestic market so to expand business internationally.
From the above discusses market entry strategies, Davison Canners is recommended to
select licensing strategy as it is effective one and suits best to enter in international market as
well as assist in properly maintaining business sustainability within Asian market.
M2. Application of market evaluation criteria as well as entry strategies with recommendations.
Analysing expansion opportunities for particular destination that provides huge success
chances as well as minimising risks will be most preferred (Rosson and Ford, 2016). In preset
era, wide options for expansion are available for entities. Some are partnership and licensing.
Partnership provides advantages of collaborating activities with other individuals but at same
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time it creates dominance situations among the partners from distinct locations. In context to
licensing, it provide benefits of using organisational intellectual property for making position in
market by at same time, it enhances competitive rivalry. Among the both, licensing strategy is
recommended to Davison Canners as it creates more opportunities for expansion internationally.
D1. Critical evaluation of international market.
International market is a concept through which managers of Davison Canner
understands or gain insights about market they have to enter. Within Asian market, consumers
are influenced through their attachments with products. Selected entity must understand the ways
that they can connect or make emotional attachment of their products with the target market
audience. Through this, they can adapt licensing strategy for entering into Asian and its
surrounding markets. With the licensing strategy, Davison Canner can achieve advantages of
huge opportunities for generating passive income by licensing business so that they can enter
into international market (Ghauri and et. al., 2016). But at same time, the disadvantage of this
strategy is that the entity have to become more dependent with activities of licensor as well as
creates competitive situations among both entities that may restrict its competitive edge in the
international market.
TASK 3
P5. Overview of key arguments in global versus local debate.
Marketing plan plays crucial element in all business whether locally or globally. All
business units follows rules are governed by local or global authorities (Skarmeas, Zeriti and
Baltas, 2016). Management team analyses local addition to global presence and develops plans
to meet objectives. Davison Canner is involved in supplying products made from real fruits and
have made reputation with local market of UK where they functions. In order to enter into global
market, the company needs proper planning with effective strategies. Local debate is
characterized to local marketing plan that attracts people from native nation. In contrary, global
debate is termed to marketing plan for serving other countries.
Global Local
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This comprises activities or strategies of
business to work internationally.
This covers business plan to promote or market
products at local level.
This benefits in creating huge opportunities in
order to enhance profits addition of business
efficiency.
At local level, less opportunities are created for
enhancing productivity due to limited
competition (Sun, Paswan and Tieslau, 2016).
Company under such debate have wide scope
to earn revenue margin.
Th scope of generating more profit margin is
limited.
Considering it, manager of Davison Canner
develops innovations addition to trends
through understanding international market
needs.
Through this, Davison Canner only focuses on
running business smoothly as major emphasis
is on developing customer relationships at local
market.
Herein, strong marketing plan is required to
survive within global environment.
It requires local management skills along with
marketing potentials.
From the above overview, it has been analyzed that local debate do not help the business
more to gain competitive advantage. In addition, it do not require advanced skills addition to
more investment. In contrary, global debate requires strong marketing plan and helps in
sustaining the business for more duration. It has been concluded that Davison Canner of UK can
successfully establish their business at international level through adopting effective strategies of
marketing.
P6. Investigation about the ways product, place, pricing along with promotional distribution
approach differs in international context.
Marketing mix is termed to tactics or actions which an entity uses for promoting its
commodities in market (Surugiu and Surugiu, 2015). 4Ps of marketing are named to product,
price, place and promotion that are influenced through international marketing. While putting
step in new market, it is required to make operations appropriate and effective. For this, it is
essential to analyse changes taking places at distinct level of local and international context. The
differences among local and international context as per the 4 ps of marketing are as follows:
Elements Local context (London, UK) International context (Asian
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Countries)
Product Davison Canner serves products
such as sauces, jams, desserts,
processed apple fillings and fruit
compotes within UK market. All
these products are designed by
considering taste of local market
audience in order to gain
competitive position within such
market.
When management team of
Davison Canner are planning to
go internationally that is within
Asian market then they have to
use specialized product and
further will produce quantities
according to international market
taste and demands.
Price Prices are set after understanding
purchasing power of local
customers. In addition, to provide
products to UK market, company
adopts competitive pricing
strategies as to make a position in
the competition (Wu, 2016).
Herein, prices will be set as per
purchasing power and economic
status of international market that
is Asian countries. Company
adopts price skimming strategy as
to sustain in international market
and offering products at
affordable rates during initial
stages.
Promotion Within local market, selected
entity can promote products
through newspapers, hoardings,
personal marketing and attractive
advertisements.
Herein, promotions for
specialised products will be done
with usage of sponsorships,
social media advertising and
promotions through brand
ambassadors.
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Distribution Products at local level are
distributed by marketers of
Davison Canner through physical
stores or outlets as well as home
delivery options.
At internation level, usage of
options to distribute specialised
products will be done through
online modes, wholesalers
addition to retailers.
M3. Evaluation of context as well as circumstances wherein client organisation should adopt
approaches of global and local
Organisations basically depends on market audiences for growing business efficaciously.
In case of Davison Canner, the managers adopts approaches of local and global debate as per the
situations. Both the approaches benefits in running activities of company and maintaining
productivity in efficient ways. For example, when company do not want to make more
investments and do not require marketing skills to manage the workings, they should adopt
approach of local debate. While there are situations when the company prefers to make
innovations and strong marketing plan, then they should adopt global debate approach (Zhou,
Wu and Barnes, 2012).
M4. Determining the ways to adapt marketing mix of client entity in distinct international
markets.
Marketing mix have some elements that plays critical role while expansion of operations
within international market. The elements helps in setting appropriate prices, choosing suitable
pricing strategy, determining place to operate business and using effective sources to promote
organizational valuables. In context to local market, these elements are adapted to satisfy
preferences of local market and in relevance with international market, all these elements are
adopted considering demand of people residing internationally.
D2. Critical evaluation about the ways marketing mix is applied to diverse international contexts
Marketing mix is one of prominent tool which is applied in distinct ways within diverse
international context. Through the marketers of Davison Canner, marketing mix element are
applied as per the preferences and requirements of people residing either locally or
internationally. For example, when operating within local market, company uses all products that
they manufactures, adopts pricing strategy to remain in competition, opens stores at distinct
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places and make promotions by using advertisement and holdings. In contrary, the element of
marketing mix are used differently in international market such as only specialized products are
offered, adopts pricing strategy considering economic values and powers of people residing
within market and distributes products through retailers and online sources.
TASK 4
P7. International marketing approaches
International marketing approaches are the ways management uses to market products
internationally (Ghauri and et. al., 2016). Some of the approaches are:
Traditional marketing approaches: It is said to marketing method that are been used
from past durations and are providing huge success. In other words, this kind of approach is been
adopted by entity from early stages of existence and are used in present era also as they caters
better results. With this approach, marketers of Davison Canner attracts people from distant
geographical locations by using advertisements, merchandising, sales promotion as well as
distribution. The advantage of suing the approach is that it enhances more awareness among
market segments and provides excess reach ability among individuals residing at far places. On
other hand, the disadvantage of using such approach is that it requires more investment of
resources to market products for people living at vary far locations.
Modern marketing approaches: This approach is mainly holistic in nature and it
connects entities and its products with real customers as well as drives business results through
creativity, analysis and blending strategies. Some of the methods within such approach are email
marketing, product placements, affiliate marketing and social media marketing. When Davison
Canner use such approach then they promotes products through online technologies and social
media that influences behavior of wide people at same time. The advantage associated with this
approach is that it involves low risk and low investments and helps in getting faster responses
from end users. The disadvantage is that it lacks providing surety for attracting targeted
consumers and it is majorly dependent on technological aspects.
P8. Comparison among home and international orientation as well as ways to assess competitors.
Home orientation is related with focusing on satisfying the needs and wants of
customers present in the local market. This means that the company focus on promoting its
existing products in the existing consumer market (Ringle, Sarstedt and Straub, 2012). This
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affect the company's ability to innovate its products which can help it to expand in other
untapped markets. Davison Canner might achieve huge success in the local market by applying
home oriented strategies but it might not be able to expand in other markets successfully due to
lagging behind in innovations.
Ways to access competitors: The company can expand its products in the foreign
markets so that its sales increase and also it can strengthen its market position so that the
company can gain a competitive advantage in the market. Also the company Davison Canner can
conduct research in the markets so that the changing demands of customer can be analysed
which will help it in deciding the products it can offer to achieve customer satisfaction which
will increase company profits.
International orientation is related to the intensity at which company trades and invests
in the international markets also the degree of influence and control it has across borders. This
helps the company in expanding its business in international markets by applying research
techniques and innovations in their products and services so that maximum customer satisfaction
can be achieved.
Ways to access competitors: Davison canner can develop its knowledge regarding the
market fluctuations so that the profitable market can be chosen by the business to expand its
market. The business managers also need to apply effective management plans so that
profitability can be achieved on the products sold by the company which will help it in achieving
a competitive advantage in market.
M5. Evaluation of marketing approaches as well as competitor analysis.
Marketing approaches and competitor analysis can help the company in gaining a
competitive edge in the marketplace by analysing the strengths and weaknesses of competitors
(Wu, 2016). This helps the company in formulating strategies and policies in such a way that the
company can gain a large market by either changing its pricing strategy or by innovating its
products so that it is able to deal with the customer needs in a better manner than their
competitors. Marketing approaches helps the company in reaching to its target markets in a
better manner so that prospects can be converted into customers which increases sales and
revenue of the company.
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D3. Recommendations on the ways organisations should be structured for maximising
opportunities within international context.
Organisational structure influences the way in which activities and operations in an organisation
takes place so that the company goals and objectives can be achieved. For maximising the
opportunities in international market following recommendations can be followed by
companies :
 Increase in market research so that potential markets can be found where the company
can expand its business.
 The company can invest in technology so that new and innovative products can be
created which can help the company to expand in the international market.
 Sponsorships, exhibitions etc. can be used to expand businesses in international markets.
CONCLUSION
The above discussion concludes that international marketing caters diverse opportunities
to organisations for expansion purposes. International marketing have diverse scope including
exports, imports and wholly owned manufacturing. Domestic marketing as well as international
business are key concept connected with the intentional marketing. The routes through which
busies can go international are direct routes and indirect routes including Alliance partners and
Channel Partners. An entity while considering the international market they have to enter should
be based on key criteria and proper selection procedure. International marketing approaches are
traditional marketing approach as well as modern marketing approach that hugely helps in
promoting business products.
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