International Marketing: Scope, Concepts, and Strategies

This document provides an overview of international marketing, including its scope and key concepts. It discusses the rationale for marketing internationally and explores various routes to market. The document also covers key criteria and the selection process for entering international markets, as well as different market entry strategies with their advantages and disadvantages.

) Unit 40: International Marketing
Submitted on:
Lecturer declaration
International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Scope and key concept of international marketing...........................................................1
P2 Rationale for it to want to market internationally and various routes to market...............2
TASK 2............................................................................................................................................4
P3 Key criteria and selection process.....................................................................................4
P4 Different market entry strategies with advantages and disadvantages..............................5
TASK 3............................................................................................................................................7
P5 Overview of key arguments in the global versus local debate..........................................7
P6 Product, price, pricing and promotional distribution approach differs in a variety of
international contexts..............................................................................................................8
TASK 4..........................................................................................................................................10
P7 Different international marketing approaches client organisation can adopt..................10
P8 Home and international orientation and ways to assess competitors..............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is defined as the process through which business activities is
performed as to plan, price, promote goods and services served by business activities to large
number of consumers at international level. Through international marketing business is
expended to various markets and enjoys an advantage to be connected with new consumers. This
leads to expansion and diversification of business operations and provides opportunity to grow
and develop in different markets. Through international marketing globalisation has reached to
competitive level as quality products are served in affordable pricing then it leads to improve
living standards all over the globe (Abuznaid, 2012). In this project report scope and key concept
of international marketing is elaborated. Selection of entry in international markets and key
success factors. Elements of marketing plan to be adopted across international markets.
Organisation and evaluation of international marketing efforts.
TASK 1
P1 Scope and key concept of international marketing
International marketing is focused on the application of marketing principles and strategy
across national borders. Those are the marketing activities applied in other countries. According
to Kotler, ‘Global marketing is concerned with integrating and standardising marketing actions
across several geographic markets’. Scope of international marketing is described as follows-
Export: It is a process where products are produced in one country and exported for sale
out of the national boundaries. For example, Toyota used to produce all motor vehicles in their
local Japanese plants and export to Asian markets and later to North America. Benefit of
exporting goods could be the compensation of local restrictions in terms of space, climate, and
taxation (Aichner, 2014). It has a positive impact on the economy in terms of increased revenue
stream for the government from the taxes, increased employment and additional revenue stream
from the employment taxation.
Import: It is a process during which goods or services are brought in the domestic
market from other countries. Such as the import of tomatoes from Italy to UK. Through imports
facilities that are not available in the domestic markets for business can be introduced and
various facilities gets improved through imports.
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Establishing production and sales facilities in foreign countries. For example, General
Motors has multiple car manufacturing plants in countries like Turkey or North America, where
cars or car parts are produced for the global market.
Fundamental concepts of international marketing are domestic market orientation, global
market orientation and multi-domestic market. These helps in satisfying large number of
consumers in international markets-
Domestic market orientation- This market tends to be ethnocentric and pay no attention
to what happens to global markets (Boone and Kurtz, 2013). It neither wants to search for
expansion opportunities abroad. Products and services are produced locally for local consumers
in the home country. Companies operating at and in the domestic market only may become
vulnerable to the sudden changes arriving from foreign competitions, where foreign companies
import better or cheaper products.
Global Market orientation- Those types of companies are experiencing high demand in
terms of physical, financial and managerial resources. Exporting faces many difficulties such as
import/export restrictions and regulations, cost of shipping, exchange rate fluctuation,
development of additional distribution centres and channels. Through global orientation
companies achieve a reduction of cost inefficiencies and duplication of efforts among their
national and regional subsidiaries. Global market orientation allows the opportunities for transfer
of brands, ideas, products between countries, the creation of global customers network.
Multi domestic market- An international marketing approach that chooses to focus
advertising on the needs of a local market rather than taking more universal or global approach.
This means that companies are focused on marketing strategy emphasising over the culture of
various local markets and tailor their entry into those markets based on the demographics of that
area (Borzekowski and Cohen, 2013).
P2 Rationale for it to want to market internationally and various routes to market
Companies approach international markets for a variety of reasons. In general, companies
go international because they want to grow and explore new opportunities.Going international is
a strategy influenced by various factors. Factors such as current business operation model, types
of products, business structure capable of expanding abroad and managing the international
branches, access to cash or finances and bank loans.
Various factors determine the potential international business expansion, such as:
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Domestic market too small- Business might seek sales abroad due to limited market
share within the home country, limited access to customers, high domestic competition. Today
Toyota is one of the biggest vehicle manufacturers in the world thanks to their initiative and
business model they have successfully conquered the Asians, Europeans, American markets.
More revenue potential- Improving profit margins can win the argument on why
companies can benefit from expanding internationally (Boso, Debrah and Amankwah-Amoah,
2018). Domestic companies are continually seeking opportunities to attract customers and
increase revenue streams. Cash flow is the bloodstream for any business, and any obstructions
may devastate businesses.
Business expansion- Access to global markets and increasing revenue potential is one
side of the coin. On the other are the ability to help more people, access to talent, creating
competitive advantage and increasing revenue streams.
Diversifying company markets- International expansion allows the company to
diversify its business, which reduces the risk of slowing demand in certain countries or the
domestic markets. By expanding the business internationally, it could be taken advantage of
access to raw materials and resources which might not be available in the domestic market.
Expanding business at international level can be done with various methods and the most
appropriate is selected on the basis of goals and objectives-
Franchising: It is a process in which the business brand is owned by parenting company
and other businesses trade under their name against an agreed periodic fee, percentage of the
business or one-off payment. Such example could be McDonald's and their internationally
operated franchise (Efrat, Gilboa and Yonatany, 2017).
Joint venture: It is a process in which two or more companies combine their resources in
pursuit of mutual goal, in this case the build of a high-speed rail track between South and North
of the UK. As mentioned the joint venture is the cooperation of two companies in pursuit of a
common goal. Such an example is the joint venture between BMW and Toyota cooperating on
research into hydrogen fuel cells, vehicle electrification and ultra-light materials.
Merger: It is a process in which two companies are becoming a new separate entity
functioning as a new company. An example of a merger is the combined forces of Orange and T-
mobile in 2010, which today operates under the name of widely recognised mobile operator ‘EE’
abbreviation of Everything Everywhere.
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TASK 2
P3 Key criteria and selection process
There are number of market entry roots available to each business organisation that
serves with various opportunities for business to expand and earn huge amount of profits. All the
methods in the selection process are available with opportunities that helps in generating
advantages to expansion plan. Selection of method for expansion is very crucial decision as it
leads to as success and failure of globalisation decision is quite influenced through method
adopted (Eng and Ozdemir, 2014). All the methods for expansion needs to be evaluated on the
basis of advantages and disadvantage served by them in the desired target market. The selection
process needs to satisfy some the the primary requirements that are as follows-
Competitive and target consumer research: Expansion decision is taken on the basis of
research made to calculate target consumers availability and demand for the product served.
When research is conducted in relation to analyse actual demand available in the international
market then only expansion decision can be made worth the efforts taken. Identifying all the
strengths already available and some areas that requires improvements to take correct decision
for expansion.
Market analysis: While expanding business to international markets analysing the target
consumers and competitors is not sufficient to produce required results. All the potential factors
that are available in the industry and influence business operations needs to be considered to
generate best results. To make competitors analysis Porter's Five Force analysis can be used to
generate clear picture of the target market.
Analysis of growth and performance: When it comes to expansion or going to
international markets this is not a one day decision (Halinen, 2012). As huge amount of
permutation and combination is applied so that accuracy can be introduced to generate
productive results. Analysis of growth and performance of other organisations in the industry is
done so that so that an approach that introduced with stability and expansion of business is
introduced.
Selection process of globalisation root needs to follow a specified process that is defined
as-
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Segmentation: In this process target market of large number of consumers are divided
into small units on the basis of their characteristics to serve them with desired products and
services. Concept of marketing mix will be introduced for effective results.
Target market selection: After accessing goods and services that is required to be
provided on the basis of demand of consumers in the target market potential consumers will be
selected as targeted consumer group. International market which is at growing stage and possess
scope of expansion will be selected to be served to achieve profitability.
Selection international market: When consumers and segmentation is introduced at
appropriate level then in that case it will leads to make a final choice for selecting a country in
which expansion needs to be made. Opportunities and threats that are available in the market will
be accessed on the basis of market so that expansion decision can be made to maximise chances
for success (Ionita, 2012).
P4 Different market entry strategies with advantages and disadvantages
In the process of expanding a business to international level it is very important to select
an appropriate market entry strategy. An appropriate marketing entry strategy in international
markets enhances chances of success in adverse and challenging business environment. Through
this various competitive advantages can be enjoyed that helps to adopt its political and social
environment in easy and appropriate manner. Aim and objective of expansion will be achieved
with the process that is adopted for expanding to global markets. Some of the marketing
strategies for expansion are as follows-
Joint venture: It is a process when two companies combine efforts and utilise each other
resources and network to expand internationally. For example in 2010 Deutsche Telekom and
France Telecom formed a joint venture to form what it used to be known as T-Mobile and
Orange into EE, which is the biggest network provider in UK.
Advantages:
 Shared expense among businesses which does not place financial pressure over a single
business unit.
 Utilising the resources of either of the parties, resources in terms of physical facilities or
technical and specialist knowledge, software infrastructure.
 Risk related to chances of success and failure is shared by two parties and losses is
suffered by both.
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Disadvantage:
 Communication issues, the difference in opinions and disagreement in the approach,
cultural barriers, operating from time zones may leads a business to suffer.
 Potential competition within the employees from different companies leading to rushed in
decisions and deviation from the leading cause.
Direct Exporting: IN this process companies directly serves to consumers in foreign
markets to cuts the middle man and provides direct market access to either wholesalers or
distributors. By exporting the company can save on costs of manufacturing abroad and
maintaining or managing facilities in a foreign market. However, transportation costs and
currency fluctuation may be restrictive (Forbes, 2019).
Advantages:
 It minimises the cost as profits in relation to various intermediators is abolished.
 It helps in generations benefits through compensation of local restrictions in terms of
space, climate, and taxation.
Disadvantage:
 Risk related to sales and after sales services provided to consumers at international level.
 Time taken in the process of providing goods and services is huge and leads to generate
unsatisfied consumer group.
Franchising: In this process owners of business serves large number of consumers
through affiliated dealers who are provided with an authority to perform on the name of business.
Expansion through franchising do not involve sale of business and generate revenues as a fee for
franchise.
Advantages:
 It leads to guaranteed recognition of the business name, which helps the franchisee to
compete in the market and establish it’s own name.
 Operational costs are easily predictable due to similarities in pricing, products and
expenses on staff.
Disadvantage:
 This form of business involves high initial cost of business.
 Pre developed operational structure leads to generation of extra operational cost.
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Merger: Two business organisations while expanding internationally joins together
and form some other organisation to operate in other international markets. Value of resources is
enhanced through effective utilisation by efficient workforce.
Advantages:
 It leads to generate increased market share and reduced competition, rapid increase in
size, without initial investment.
 Diversification of the business and allowing different industries to merger and expand
their potential range of customers and learn from each others systems.
Disadvantage:
 Increased market share can lead to monopoly power and higher prices for consumers.
 Higher prices and lesser choice could be seen as the result of monopolistic merger.
 Cutting costs leading to job losses in order to satisfy and complement each other’s
business model (Jiang and Wei, 2012).
TASK 3
P5 Overview of key arguments in the global versus local debate
As previously outlined the reason behind global business expansion are ranging from
discovering new revenue potential and exposure to foreign investment opportunities to the ability
to help more people. This also provides greater access to talent, learning a new culture,
improving the company’s reputation, diversifying company markets. The global business
expansion has proven to work for companies willing to sale abroad and willing to increase their
revenue potential. Global companies such as Samsung and Apple have grown exponentially and
combined are sharing 50% of the world mobile phone market share. On the positive side, it could
be witnessed that both companies have successfully achieved their goal of global business
expansion. On the contrary the businesses have monopolised the market and delegate trends in
terms of models and mobile phone pricing. The power of globally operating companies is
exploiting the poorer countries and breaking not only the sovereignty but abusing labour
conditions and as witnessed forcing young children working extortionate amount of hours, in
unacceptable conditions and desperately low pay.
To save the hassle and issues when operating globally, as well as damaging its reputation,
companies will benefit from reducing the risk of exposure to foreign markets and save on costs
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by operating locally. Penetrating foreign markets can be profitable, but it could also doom profits
or bring the company in disrepute. For example, Tesco failed in their business ventures in South
Korea, US, Japan and in Turkey they had to sell to direct local competitor. Therefore if a
company wants to expand, it should consider the needs of its local economy and contribute to the
local employment rate as well as taxation. This is why locally operating businesses are better off
when it comes to the real economy, where taxes and profits are not washed from the local
economy and business contributes the national economic growth rate.
However, smaller countries have managed to collect more taxes than they had ten years
ago. Foreign companies tend to pay more than local businesses. Sometimes as twice as much.
Workers are better off working for multinationals instead of local companies for various reasons
such as- compliance to company and international standards demanding systems and processes
as well as working conditions; multinational companies will risk too much of a business if they
risk and get caught in breaching human rights (Khan, Lew and Park, 2015).
P6 Product, price, pricing and promotional distribution approach differs in a variety of
international contexts
Marketing mix is referred as set of practices which is used by the business organisation to
facilitate promotion of its products in the target market. Through marketing mix a effective
marketing technique is used in which product, place, price and promotion of product is used in
the most sustainable manner. Through this technique all the element of the product and services
are set as per the taste and preference of the consumers in the target market. This approach
differs when implemented at national and international level. Analysis of marketing mix
approach when expanding to national and international level in respect to Toyota is elaborated as
follows-
Elements Local context (Japan) International context (African
Countries, Chad)
Product Toyota has a diverse set of
products. In this elements products
that will be provided to the
targeted consumers are identified.
African countries like Chad is not
in the demand for the products
that are available with some
luxury. Toyota has analysed
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As Toyota is expanded to highest
amount of countries and is highly
recognised for its product mix.
Toyota in its local market serves
variety of products as per taste and
preference of consumers available
in different locality.
demand for some specific
vehicles in Chad and finds is one
of the growing market to make
expansion.
Price Pricing strategy used by Toyota is
effective and impressive. Prices of
the productsInternational
Marketing served by Toyota
differs and a combination of low
and high pricing is used to attract
and hold consumers for more and
more duration. Toyota sets price
of their products based on the
market conditions and the level of
competition available in the
market.
While expanding to the
international market pricing
strategy is set best suitable as per
market conditions of the country
where expansion is made. Taste
and preference of consumers in
the market will also be
considered for setting price of the
offered product.
Promotion Toyota's promotional strategy uses
all the marketing tactics which is
used to make effective
communication among all the
targeted consumers. Toyota uses
personal selling through dealers
who make direct promotion for
their product to potential buyers.
Various media like TV,
newspapers and social media
websites are used to market the
Expanding to other countries will
change the promotional method
and techniques of marketing
suitable in international markets
are adopted by Toyota while
expanding to Chad.
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offered products.
Place or strategy for
Distribution
Distribution channel of Toyota is
quite strong and largest among all.
Their are four sales channels used
by Toyota such as Toyota,
Toyopet, Corolla and Natz. These
sales channels helps business
organisation to grow and expand
in the most competitive manner in
Japan.
When Toyota expands to
international market then analysis
to the international market is
made after that a effective
distribution channel which is best
suitable there is used
(Madanoglu, Alon and Shoham,
2017).
TASK 4
P7 Different international marketing approaches client organisation can adopt
International marketing approach is used by business organisations while expanding its
business operations at national and international level. A effective marketing approach used by
business helps to compete effectively in the market. Expanding business by Toyota in
international markets leads to generation of accomplishment of following marketing approaches-
Traditional marketing approach: This is one of the oldest and highly used marketing
approach followed all over the world. In this form of approach more and more amount of
concern is provided to methods which do not involved any modern form of marketing tactics
(Mainela, Puhakka and Servais, 2014). As per this approach more and more amount of concern is
provided to sales of particular goods and services and all the efforts are made in this relation.
Some of the most commonly used traditional marketing practices are as-
 Business Cards
 Advertisement on TV and Radio
 Brochures
 Direct mails
Traditional marketing concept is focused on companies point of view and always tends to
make more and more amount of sales for business. As per this marketing approach selling
department is the one concerned with sales and promotion for the brand and no other department
is concerned with sales and marketing. This marketing approach is suitable for business
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organisations when operating at national level or expanding where acceptance for product can be
generated through this marketing approach.
Morden marketing approach: As traditional marketing is more of company oriented
this Morden approach of marketing is more of consumer oriented. All the approaches used in
business are made in such manner that high amount of consumer satisfaction can be achieved. In
this form of marketing advanced marketing tools are used which are related to digital technology
as per latest marketing trends (Rao-Nicholson and Khan, 2017). When a business is expanding to
global level then this form of marketing is highly recommended because it helps to make it easy
to reach to global audience. Some of the common methods in Morden marketing approach are as
follows-
 Email marketing
 Internet advertisement
 E-Commerce Website
 Using various social media sites like Facebook, Twitter and Instagram
Morden marketing approach is highly concerned with the consumer satisfaction and
focus on providing goods and services which are best suitable to consumers as per their taste and
preference. Modern m methods of marketing helps organisations like Toyota to expand their
business at national and international level and this also generates wide marketing approach for
business organisations.
P8 Home and international orientation and ways to assess competitors
International Orientation Home Orientation
It involves designing and producing goods and
services in such manner which leads to
production of goods and services to satisfy
consumers in international markets. When
business is operating at global level in that case
business enterprises perform their activities of
marketing as per the market conditions in
different countries (Yang and Gabrielsson,
2017).
In this marketing form focus in made on
identifying needs and wants of the targeted
consumer group available in the local market
where organisation operates at national level.
Identifying needs and wants of targeted
consumer group helps in satisfying more and
more amount of consumers. Main focus is
made to the consumers where business is
already operated.
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International orientation helps business
organisations in designing their products in
such manner that it become more suitable for
consumers at large. As more and more
consumers are preferring their products
because they are formed on some basic
standards that are acceptable at international
level. For example- In Toyota level of comfort
is one quality which consumers in local and
international market possess same concern.
Development of a product on the basis of taste
and preference of the targeted consumer group
present in the local market leads to
development of products which are not suitable
as per international standards. For example-
When Toyota is preparing its cars for Indian
and China market then certain cars that are
cheap and affordable in nature needs to be kept
in that product mix to attract consumers of
different income group.
While expanding to international markets
competitors needs to be analysed. At that time
competition at national and international level
needs to be analysed at this stage. As an
international orientation generate competition
at global level. A strategic management
approach will be used so that assessment of
strengths and weaknesses of current and
potential competitors can be made in the
international markets.
When competition is analysed in the local
markets then approach which is best suitable
for business is used. Access to required
information of competitor is easy in home
market and this makes analysis easy and more
accurate to generate productive results.
Implication of this strategy will be made in
such manner that a business organisation will
be able to gain both offensive and defensive
approaches to identify various opportunities
and threats available in relation to competitors
available in international markets.
In this form of strategies all the information
related to competitor is acquired and analysis is
made for all the methods used in relation to
analysing competition. Results are used to
generate a suitable marketing strategies.
CONCLUSION
From the above project report it has been concluded that expanding a business in
international market is served as an opportunity to reach to more and more consumers. For
expansion a suitable method will be used so that advantages can be enjoyed for success of the
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expansion plan. This complex process will be evaluated on the basis of level of completion of
goals and objectives derived from expanding in international markets. Effective marketing mix
and competitive analysis will be performed so that marketing strategies can be established to
generate more productive results in long run.
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