Scope and Key Concepts of International Marketing

This document provides an analysis of the scope and key concepts of international marketing, including market entry strategies, criteria for selecting international markets, and differences in product, pricing, promotion, and distribution approaches. The document focuses on the case of Amazon in India and discusses its success in the international market.

International Marketing
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task1................................................................................................................................................3
P1analyse the scope and key concepts of international marketing.............................................3
P2Explain the rationale for an organization to want to market internationally and describe the
various routes to market they can adopt......................................................................................4
P3 Measure the key criteria and selection process to use when considering which international
market to enter.............................................................................................................................7
P4 Justify, using examples, the different market entry strategies, including the advantages and
disadvantages of each..................................................................................................................8
P5 Present an summary of the key arguments in the global vs local debate.............................10
P6 Investigate how the product, pricing, promotion and distribution approach differs in a
variety of...................................................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
Books and journals ...................................................................................................................13
2

INTRODUCTION
International marketing is known a business of goods and services in different countries.
This is a way to expand business in one or more than one country.(Vellas 2016.)
It is a multinational process, where a business entity can grow more by making a best strategy
related to promotion, price and distribution of goods, service and ideas. The main object of
international marketing is, to achieve success in foreign market. This report is based on Amazon
(India).
It is a multinational company, firstly established in July 1994, in US. Then amazon
expand its business world wide. Amazon launch its first website in 2013 in India with custom
domain. In this way amazon started many programmes and service to expand business in India. It
includes, Amazon Chai Cart, Amazon Tatkal, Easy Ship and Seller Flex etc. So, it can be said
that Amazon achieve its goals in very short time period.
Task1
P1analyse the scope and key concepts of international marketing
International Marketing is a wide concept of marketing, in which goal and objects
decided for getting success world wide.(Srinivasan. 2016. ) It is related with business activities
and operations which are performed for promoting and selling goods, services offered by
company. International marketing has large scope that is mentioned below-
Contract manufacturing –
It is a most important plan of action which is basically used by companies to assembling
the product in order to make contract with other company. In this procedure half of the price of
product is cut and it is easy to come out from this process.
Contractual agreements –
These agreements are related with technical assistance, licensing and co production. In
this way, contractual agreements(Schlegelmilch. 2016. ) are signed by company, while working
in international market with other companies to achieve an object of enhancing or expanding
business. The main object behind this is to sustain the position of business in internation market.
3

Exports -
Exports of product and goods is an important part of international marketing. It is also
includes exports of finished goods, raw materials etc. Exporting is a process of transferring
goods or services in different countries to generate high revenue and profitability. (avalgi and La
Toya 2018.)If the exports of an organisation is higher than the import, so it can be said that,
organisation is in profit. Sometimes many companies exports semi finished product or goods for
increasing their treasury of brand. The profits which is generated by exports is basically used to
compensate import cost.
Imports -
import of product or goods is also an essential factor of international marketing. A
company can import, branded or premium products and also consumer required product which
is not available in market at demanding time.
Imports is a procedure of buying goods or product from different countries to fulfil
consumer demand and to gain the additional profit of high demand situation.(Paul and Mas.
2020.) If imports of product is more than exports of product so it can be said that the company is
in loss. Import and export both are necessary elements of international market in order to
enhance business and profitability of amazon.
Joint venturing -
it is a procedure, where two or more association works together for a specific purpose and
with the intention of profit for a (Solberg.2017.)very short time period. In this way, two or more
different brand companies, collaborated their brands to achieve organisational goals and
objectives. Joint venture mainly used by companies when an organisation found that there is a
blockage of getting entered in foreign market.
Home and international marketing
Pharmaceutical companies, for example, may provide standardized products in various markets
since medications are used in comparable ways all over the world. When the brand concept is
built on actual national heritage, a standard product can be provided throughout markets in a
second case. Scotch whisky is a great illustration of this. The third circumstance in which a
4

product can be standardized is when there is a worldwide market group of consumers who share
a common lifestyle and thinking across nations. This really worldwide niche is catered to by
Gucci fashion accessories and Rolex watches.
P2Explain the rationale for an organization to want to market internationally and describe the
various routes to market they can adopt
The main aim of Amazon is to provide best service through online marketing. The
company mainly focused on service and quality of products. It can be said that, product range of
amazon is ultimate which attract its customers. This is a big company, which achieve success all
over the world. Amazon is top most internation company which has good reputation related to
products. (Moon. and Oh. 2017.) In this manner, there are a lot ways for entering in
international market to earn global success. There are some ways which is used by respective
company to expanding the business in India and many other countries. These are-
Partnering –
This is a way, for companies to entering in international markets. There are many of
partnering, which is helpful for companies in positive manner. (Oyewole, 2018)This a best
strategy where culture of business is completely different from local partners.
Direct exporting -
In this way company can sale its product or goods directly in chosen market. This is a
process where company requires(Malhotra, Nunan and Birks. 2017.) a proper sales programme
for representing the business. This is best way to enter in internation market for large size
company.
Internet –
this is a most effective way to enter in the international market. Amazon used this process
for enhancing its business. In present competitive time this is a best way for every company.
Piggybacking –
5

This is unique and different way to enter in international market. In this manner company
present its unique product in international market, which has a large range of sale in domestic
firms.
Licensing -
It is a way, where company can entered in international market through licensing. In this
process a multinational company provide license to another company to sale products under the
name of company in foreign market.
From the above it can be said that, there are many ways to enter in foreign market. But
above these are effective ways,(Baack, Czarnecka and Baack,2018.) along with this franchising,
buying a company , joint venture are also the ways to enter in foreign market and expand
business in positive manner.
P3 Measure the key criteria and selection process to use when considering which international
market to enter
There are various strategies which is planned before entering in the new market so that
company can increase its profit:
 Objectives of international marketing: The main aim of every organisation is to earn
profit through the product and services which they are providing for this company has to
select the marketplace in which they can enter can achieve their target.
 Criteria for selecting a marketplace: In order to enter in a new marketplace various
parameters are followed which can be a situation of the market, resources available,type
of customer,government polices etc. By the help of these parameters company can
determine their profit margin in the particular marketplace(Basak and Khanna, 2017).
 Preliminary screening: It helps the organisation in removing the marketplace which does
not have the profit margin. It this various parameters are included for example, size of the
population, per capita income, factors effecting infrastructure etc.
 Short listing of marketplace: Once the preliminary screening of the market is done there
are huge number of markets which are remaining. By the use of information and data
these markets are again screened so that best marketplace can be selected.
 Evaluation and selection of marketplace: After the short listing of marketplace these
markets are again analysed on the basis of their cost benefit analysis and feasibility. Once
6

this process is completed then best market is selected and product and services of the
organisation are launched in that marketplace.
 Test marketing: It basically helps in analysing the demand of the product and services in
the market. In the test marketing feedback are taken from the customers so that their
satisfaction level can be determined.
 Commercial production: with the help of test marketing business can easily understand
the area where improvement is needed so commercial production help the organisation to
modify its products and services in the market so that their demand in the market cannot
decrease.
Marketing mix for international marketing
The degree to which a company's marketing mix should be standardized or adapted over the
world is a preliminary choice that international marketers must make. Manufacturing,
advertising, and packaging all benefit from standardization, thus it may be attractive to
standardize as much of the marketing mix as feasible across markets.
P4 Justify, using examples, the different market entry strategies, including the advantages and
disadvantages of each
Amazon has followed some market entry strategies so that their business can grow in the
market and profit can be earned.
Amazon chai chart: In order to expand its business in the market amazon has launched this
strategy. It is basically a mobile tea chart which serves refreshments to the small business
entrepreneur so that they can get influenced and sell their products and services on amazon. This
strategy basically helps in promoting the business so that their market share can be
increased(Vallee and Zeng, 2019).
ADVANTAGES
 It helps the business to expand in the market which will generate the revenue of the
business.
 It also helps the seller to increase its profit in the market through the help of e-commerce
platform.
 With the help of this strategy more than 10,000 seller have got influenced and started
selling their products on amazon.
DISADVANTAGES
7

 It is slightly costly process of the seller.
 It will also decrease the demand of offline stores in the market.
 It can also create privacy issues of the seller because their products design it already
uploaded on the site.
Amazon Tatkal: This strategy basically helps in the real time registration of the seller. its main
aim is to engage more than thousands of seller with the e-commerce platform so that their
growth can be increased in the market(Mokadem, 2017 ).
ADVANTAGES
 It helps the seller to start their earning immediately by selling their products on amazon.
 It will helps amazon to increase it market share in the real time.
 It also helps the manufacturer to promote large number of product on amazon which will
help them to increase their profit in the market.
DISADVANTAGES
 if the seller is selling its product on amazon then are various tax which the seller has to
pay in order to sell it products(Luthra and Garg,2017).
 Product delivery can be delay sometimes which can affect the reputation of the business.
 Physical interaction with the customer can be decreased. Seller can sell their products
anytime across the world which will help them to increase their productivity in the
market.
P5 Present an summary of the key arguments in the global vs local debate
In order to get successful in the market amazon has to plan various strategies so that their
goals can be achieved affectively. Amazon come to India so that there demand in the market can
be increased and people can get attracted by facilities e-commerce platform which will help
amazon to accomplish their goal. In order to increase its demand in the global market amazon
has launched various strategies and plan like amazon chai chart and amazon tatkal which helps
them to increase their market share . Amazon has also planned various advertisement so that
their brand can get promoted can people can get influenced easily( Aithal, 2020).
In the local market opportunities are not very high for business has to plan some innovative idea
so that its business can get increased in the market healthy relation with the seller and
manufacturer are very important In order to increase its demand in the local market amazon has
also provided the facility of FBA which fulfilled by amazon it helps the seller to deliver its
8

product on time so that their reputation can get affected in the market in the local market
business should always come with the new ideas so that they can maintain their goodwill
increase their profit. Because if seller will not get any benefit from the e-commerce platform then
it can affect the growth of the business in the market. Reason behind the success of amazon is the
services which it provides to the customer it assure the good quality of products to the customer
which is also observed by the them due to which thy claimed amazon as the best e-commerce
platform in the world.
P6 Investigate how the product, pricing, promotion and distribution approach differs in a variety
of
These are the factors of marketing mix which helps amazon to grow its business in the
market.
 Product: Amazon is basically famous for the product and services which they
provide amazon provides wide range of products to the customers which help
them to increase their demand in the market(Busuttil, 2017). If the customer is
satisfied with the product of the company then it helps the business to generate its
revenue in the market. Amazon mainly deals in retail products which is the basic
needs and requirement of the customer. Because of which customer generally
prefer online platform to purchase their product. Amazon always provides the
new and innovative products to the customer so that customer loyalty can also
increased.
 Place: In order to get in touch with the customers amazon has invented several
websites audible.com, amazon.com etc in order to attract customer amazon has
opened bookstore which is amazon books on seattle. This helps the customer to
physical analyse the product before purchasing it. These services helps amazon to
reach potential customers(Cogan, 2020) .
 Promotion mix: These are the strategies which are used by the amazon to target its
potential markets. Amazon has used various promotion techniques which
advertising,direct marketing,sales promotion etc. which helps them to attract the
customer and seller in the market. In order to attract the customer amazon has also
provided the music and video facility on website they also provide the free trial
program of prime video to the customer which is also a kind of promotion.
9

promotion plays an important role in the development of the business because if
the company is properly promoting its products in the market then it will attract
the attention of the customer which will make them excited to buy the product and
services of the company. If the seller is also impressed by the benefits of amazon
then it will force to sell their product through the e commerce platform which
increase its profitability.
 Price: amazon provides the good quality product to the customer at the reasonable
price customer gets various cash back on amazon which attracts the attention to
the customer if the amazon will sell the product at the low price in the market the
it will increase the sell of the amazon which will also benefit the seller amazon
uses primary pricing strategy because if they will sell the product at high price
then customer will decrease the demand of online marketing in the market. It
helps the companies to set their prices according to the national market condition.
So that companies can avoid loss which can occur in future(Soetan, 2018).
With the help of above factors amazon can grow its business in the market and can also
plan their marketing strategies. Different marketing strategies will helps amazon to satisfy the
needs and requirement of the customer by providing new and innovative products. If amazon
will not develop changes in their activities then it will affect the productivity of the company
which can also affect is growth in the market.
CONCLUSION
From the above report, it is concluded that international market is a wide concept in order
to enhance business and profits. On the basis of above report it can be said that an organisation,
who wants to entered in international (Kowalik and Danik. 2019.)market, must have to make
strong strategies plan to face all the new challenges. There are different routes that amazon can
achieve all goals. In this process of enhancing business has many advantages and disadvantages.
Along with this amazon make itself successful in India and many more countries by choosing
best routes which helps company to expand and grow more.
10

References
Books and journals
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Srinivasan, R., 2016. International marketing. PHI Learning Pvt. Ltd..
Javalgi, R.G. and La Toya, M.R., 2018. International marketing ethics: A literature review and
research agenda. Journal of Business Ethics, 148(4), pp.703-720.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing, 28(8), pp.681-701.
Moon, B.J. and Oh, H.M., 2017. Country of origin effects in international marketing
channels. International Marketing Review.
Oyewole, P., 2018. International marketing of services and developing countries. Services
Marketing Quarterly, 39(2), pp.79-91.
Malhotra, N.K., Nunan, D. and Birks, D.F., 2017. Marketing research: An applied approach.
Pearson Education Limited.
Baack, D.W., Czarnecka, B. and Baack, D., 2018. International marketing. Sage.
Kowalik, I. and Danik, L., 2019. Marketing activity of international new ventures–application of
the EMICO framework. Journal of Business & Industrial Marketing.
Solberg, C.A., 2017. International Marketing: Strategy development and implementation.
Routledge.
Schlegelmilch, B.B., 2016. Global marketing strategy. Cham: Springer Nature.
Basak, A. and Khanna, K., 2017. A study on the selection criteria of different hotels of Delhi
NCR in accordance to the hr policies and market trends. International Journal of Social
Sciences and Humanities (IJSSH), 1(1), pp.27-38.
Vallee, B. and Zeng, Y., 2019. Marketplace lending: A new banking paradigm?. The Review of
Financial Studies, 32(5), pp.1939-1982.
El Mokadem, M., 2017. The classification of supplier selection criteria with respect to lean or
agile manufacturing strategies. Journal of Manufacturing Technology Management.
Fradkin, A., 2017. Search, matching, and the role of digital marketplace design in enabling trade:
Evidence from airbnb. Matching, and the Role of Digital Marketplace Design in
Enabling Trade: Evidence from Airbnb (March 21, 2017).
Memari, A., Dargi, A., Jokar, M.R.A., Ahmad, R. and Rahim, A.R.A., 2019. Sustainable supplier
selection: A multi-criteria intuitionistic fuzzy TOPSIS method. Journal of
Manufacturing Systems, 50, pp.9-24.
Luthra, S., Govindan, K., Kannan, D., Mangla, S.K. and Garg, C.P., 2017. An integrated
framework for sustainable supplier selection and evaluation in supply chains. Journal of
Cleaner Production, 140, pp.1686-1698.
11

HR, G. and Aithal, P.S., 2020. Establishing True Lifestyle Brand in India: An Integrated
Marketing Mix Framework. International Journal of Management, Technology, and
Social Sciences (IJMTS),(June 2020), 5(1), pp.261-284.
Busuttil, L.R., 2017. Toward a practical theology of marketing: A five Ps approach to the
business of persuasion. Journal of Biblical Integration in Business, 20(2).
Cogan, P.S., 2020. The ‘entourage effect’or ‘hodge-podge hashish’: The questionable
rebranding, marketing, and expectations of cannabis polypharmacy. Expert review of
clinical pharmacology, 13(8), pp.835-845.
Paul, P., Bhuimali, A., Aithal, P.S. and Bhowmick, S., 2018. Business Information Sciences
emphasizing Digital Marketing as an emerging field of Business & IT: A Study of
Indian Private Universities. IRA International Journal of Management & Social
Sciences,(ISSN 2455-2267), 10(2), pp.63-73.
Sarker, M.O.F., 2019. Telecom Industry Brand Image and the Extended Service Marketing Ps: A
Study on Private University Students of Rajshahi. American Journal of Trade and
Policy, 6(3), pp.95-100.
Rosenbaum, M.S., Kelleher, C., Friman, M., Kristensson, P. and Scherer, A., 2017. Re-placing
place in marketing: A resource-exchange place perspective. Journal of Business
Research, 79, pp.281-289.
Soetan, T., 2018. Trends in higher education financing: Evidence of dwindling government
supports and a case for the aggressive marketing of higher education programs using the
9 P’s of marketing. Journal of Marketing Management, 6(2), pp.34-43.
Yeoh, J.P. and Allan, D., 2020. Sounds Like Chicken: Sensory Marketing and Sound
Effects. Indian Journal of Marketing, 50(8-9), pp.19-31.
Hartmann, T., Jahnke, B. and Hamm, U., 2021. Making Ugly Food Beautiful: Consumer Barriers
to Purchase and Marketing Options for Suboptimal Food at Retail Level–A Systematic
Review. Food Quality and Preference, p.104179.
FIRMAN, A., Putra, A.H.P.K., MUSTAPA, Z., ILYAS, G.B. and KARIM, K., 2020. Re-
conceptualization of Business Model for Marketing Nowadays: Theory and
Implications. The Journal of Asian Finance, Economics, and Business, 7(7), pp.279-
291.
Tong, S., Luo, X. and Xu, B., 2020. Personalized mobile marketing strategies. Journal of the
Academy of Marketing Science, 48(1), pp.64-78.
Sjamsir, H. and Honest, B., 2017. The implementation of 7 ps (mix marketing) strategis in
building network of partnership the independence of early childhood institution. Jurnal
Manajemen dan Supervisi Pendidikan, pp.165-170.
12

13