International Marketing: Scope, Concepts, and Challenges

This report explores the scope and concepts of international marketing, including the opportunities and challenges it presents. It also discusses the rational for expanding market area at an international level and explores different routes to enter international marketing. Additionally, it covers the key criteria and selection process for entering a foreign market.

INTERNATIONAL
MARKETING

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
LO 1.................................................................................................................................................4
Introduction to organisation...................................................................................................4
Source that explain international marketing and the differentiate them with local marketing5
Scope and concepts of international marketing......................................................................6
Challenges and opportunities exists in international marketing.............................................7
LO 2.................................................................................................................................................7
Rational in context of organisation to increase market area at international level.................7
Routes to enter into international marketing and most appropriate for business and its critical
evaluation...............................................................................................................................8
Key criteria and selection process to enter into international market....................................9
Advantage and dis-advantage of each market entry strategy...............................................10
Recommendation and conclusion on how and why the organisation must enter into
international market..............................................................................................................12
Challenges and opportunities exists at international market level.......................................12
LO 3...............................................................................................................................................13
Local and global debate with key arguments.......................................................................13
Product, promotion, pricing and distribution is differ when it is implemented in international
market...................................................................................................................................14
LO 4...............................................................................................................................................15
International approaches for marketing................................................................................15
Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach..............................................................................................16
Recommendations for the company.....................................................................................17

CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
International marketing can be defined as expand of business activities, operations and
functions with utilise and implement of a plan and promote organisation products and services
into other nation for earning more amount of profits. International marketing is also defined as
the application of marketing principles for satisfying the needs and wants of various individuals
who are beyond the local boundaries of country. This report is composed from point view of
AIRDRI which operates there business in hand drying industry. The organisation ascertains
opportunity in international market to fill the gap between designed as well as energy efficient
hand dryers and potential customers (Andersson and Evers, 2015). Moreover, this report
highlights on scope and concept of international marketing and the different routes which exists
to enter into international market. Monitor and select of key criteria and process for entering into
international business and use of different market entry strategies will also be focused in this
report.
MAIN BODY
LO 1
Introduction to organisation
The current conditions of market work as a common platform for all organisations that leads
company to perform their work within different countries. AIRDRI was founded in the year 1974
and operates its business in hand drying industry. In present scenario, AIRDRI cover the major
market area of UK and emphasis to increase their market area by entering into global market.
Organisation is providing good quality of hand dryer that are creative in design and it is also
available at low rates. In context of UK local market organisation is performing there perform
their work effectively that leads company to earn more amount of profits because the quality of
hand dryers is high which provides better value that satisfies needs of customers in effective
manner. Along with this the existing aim of organisation is to enter in market of the Germany as
it is potential market for hand drying industry (Björk, 2017). Moreover, the major benefit gain by
management of AIRDRI is that new market enhances the monetary value for organisation and it
also enhance goodwill of products.

Source that explain international marketing and the differentiate them with local marketing
According to the Philip Kotler, “International marketing concern with integrating and
standardising different actions of marketing across the different countries that are present in
international market. This result it is easy for management to increase market area by attracting
more number of customers. AIRDRI monitor and determine to follow all steps of Kotler to
successfully enter into international market.
From the perspective of American marketing association, “Global marketing work as a
process that is related with goods and services of an organisation that are available for customers
and promote, price and distribute all products in order to target right customers with right time
and at right place (Coviello, Jones and McDougall-Covin, 2015).
Therefore, it is examined that international marketing relates with process by which goods and
services of organisation are marketed towards international borders. This results profits and
customer area for business is directly increased with attracting more number of customers. It is
also beneficial for organisation to complete all work according to international standards.
Difference between Domestic and international marketing
Basis International marketing Domestic marketing
Meaning This relates to goods and services
that are promoted by the way of
marketing among different
countries to trade at international
level.
It relates with marketing that
defined to manage business in
national boundaries. It leads the
organisation to gain top position
level in market.
Area served The target customer for the
organisation is at global level.
In domestic market only local area
individuals are targeted.
Government
involvement
In international market government
interfere among most functions.
Only local government is involved
at domestic level operations.
Market covered It covers the global market by
formulating effective strategy.
Small and local area of market is
covered.
Business
operations
Functions and operations are
performed according to
international level design.
The operations are designed to
perform them specifically in one
country.
Capital To manage business at large level Low level of capital is required to

requirement requirement of capital is high. manage business operations.
Scope and concepts of international marketing
International marketing leads the business to promote the products and services at large
level which leads company for performing their operations at international level. It refers with
understand of international marketing it is easy to attain opportunities which helps business
houses to increase their business area and customer base (Demangeot, Broderick and Craig,
2015). Scope of international marketing is mention as follow:
 Export- This helps business to export their products at international level which leads
organisation to increase the sale of organisational products. In context of AIRDRI it
also helps organisation to earn more amount of profits through increasing their number
of customers.
 Import- It is leading business to import different products in order to sold them that is
helping business to perform more number of operations. It is also helping organisation
to manage and meet with customers through offering good value products.
 International operations and management- With the way of international marketing
organisation enhances their production activities that is used to assemble good quality
of products which increase economic of country at global level.
 Joint venturing- The major aspect for joint venturing is to make effective
collaboration of business that help business houses to operate a business together in
market. From perspective of AIRDRI, joint venture aids management to increase
number of resources which leads to perform business effectively in market.
Therefore, it is determines that international marketing help the business to enhance their
business size in international market. This result it is easy for management to offer better quality
of goods which captures more market area and also leads firm to accomplish exiting
opportunities in market. It is also mandatory for organisation to perform business under guidance
of foreign trade which is leading company to sale there products in international market. Thus,
with performing the business as per international trade activities management perform business
as per international marketing (Hoppner and Griffith, 2015). This is also leads management to
manage the business operations according to legal and ethical aspects of another country.

Challenges and opportunities exists in international marketing
In the present scenario, globalisation provides similar platform to all individuals that exists
within market. AIRDRI is facing challenge in market due to change in organisation as it
enhances complexity among market to work and implement international policy. Along with this
another challenge faced by management relates with diverse workforce. Similarly, there are
various opportunities also exists in market which economy support an organisation to enter into
foreign market for earning better revenue that enhance reserve surplus for company.
LO 2
Rational in context of organisation to increase market area at international level
AIRDRI management is rationale about expanding their business at international level as it
helps the organisation to gain various benefits that enhance profits, customer base, market area
and sale of products. It also helps the organisation to perform all work with more efficiency by
matching organisational products with the needs and wants of customers at international level. It
is also leading business organisation to generate and add more value in products. This also leads
and manages work performance to utilise innovation tools in the company (Jean and et. al.,
2016). Management concern that all of its products must match with customer satisfaction level
which is leading business houses to expand their business in international market.
 Enhance of organisational sales- AIRDRI refers to the way that is used by management
to expand its business area that leads customers for increase in market area. It is also
leading company to create an effective channel that is leading business houses to
promote hand dryers with unique and creative way.
 Improves in profits- From the perspective of organisation it is identified that
management is increasing their sale of designer hand dryers due to which there is direct
increase in profits of firm. This also refers that more profits leads organisation to
enhance performance of operations in international market.
 Innovation- The term innovation leads business organisation to perform their business
with more value. It is also helping the management to develop new product and also
define existing products to sale them effectively in market.

 Economy of scale- With the comparison between the market of UK and Germany it is
identifies that organisation perform their work in Germany because the labour cost of
organisation is low that leads AIRDRI to manufacture goods at low cost.
Some risk aspects are also faced by business or organisation while performing their business in
international market. The major challenges that impact on business size is as follow:
Economy at global level- The term global economic factors is impacting on business at
international market because it affect in trade (Mathews and et. al., 2016). Example- the amount
which is related with tax is depend on rules of country and the good or service which is import or
export by organisation.
High competition- With the expansion of business in international market it is identified
that there is intense competition faced by all industries and organisation. This also refers that
AIRDRI face challenges from domestic as well as international competitors which directly
impact on sale of products.
Tariff barriers- It work as a barrier that is used to generate trade within different countries
due to which custom duty, tax, service charges etc. are imposed by the government. The main
motive for implement tariff barrier is to make the balance between payment process and foreign
exchange rates.
Routes to enter into international marketing and most appropriate for business and its critical
evaluation
The business implement and follow different routes that are used by organisation for
entering international market (Navarro-García, Schmidt and Rey-Moreno, 2015). This leads
organisation to successfully expand their business area. Some ways to enter in international
market in mention as follow:
 Exporting- This refers to the way by which business organisation sold their products
to other countries with the help of shipping and other transportation methods. Export
methods or exporting also assist organisation to sold goods from local manufacture
country into other international business area.
 Licensing- It works as an official permission that work as the way of agreement which
is provided by one business to another organisation. There are various task also
manage by organisation which is used to utilise resources and asset of one company to

another. It helps the licensor to reach towards customers of another country with help
of existing business resources.
 Joint venturing- Joint venture is one of the most effective way that is used by
organisation to make partnership with foreign organisation. In this system market share
all essential needs of business to perform business in effective manner. It offers to
share profits with a decided ratio.
 Franchising- This is another way that is used by business houses to expand their
business at international level by providing right to franchisee. It also helps both
parties to understand essential aspects such as how to use intellectual property,
business model and brand name.
From the perspective of AIRDRI joint venture is one of the most appropriate methods for
business that is leading companies to perform their work into different countries (Oey and et. al.,
2016). In the current market conditions organisation manage work into market of UK so they
utilise limited resources to manufacture their products. Therefore, with implement of joint
venture it is easy for management to increase their number of resources. It results management
perform their work with more efficiency along with this it is easy and simple method to enter
into international market.
Key criteria and selection process to enter into international market
There are different criteria and selection process are utilised by management of AIRDRI in
order to select the right country. It is used by organisation to expand their business into a
particular country. Some of the Key criteria aspects that is used for selection of country is as
follow:
Analysis of market- It is significant that the earth and market of the nation is investigated
with the goal that the components influencing business can be dissected which can help in
limiting the negative impacts of these elements on organization (Pezzutto and et. al., 2018). The
utilization of key administration apparatus like PESTLE investigation can help in breaking down
the business condition of the nation that can influence its business.
Competition analysis- It is significant that the opposition which may be looked by the
organization in market can be investigated with the goal that the advertising techniques can be
chosen by the organization so the consideration of clients can be picked up. This additionally

enables the organization in situating its items and administrations in the market with the goal that
its deals to can be expanded (Navarro-García, Schmidt and Rey-Moreno, 2015).
Supply channel- The dissemination channel ought to likewise be dissected which is critical
to pick up the stockpile of crude materials from providers and furthermore to reach to the clients
in a productive way. It likewise help in making the inventory network of organization effective
so it can reach to its clients on time in this manner expanding their fulfillment.
Monitoring the demand- The interest of organization items and administrations should
likewise be investigated so the valuing systems can be resolved alongside the level at which
organization needs to produce the items and administrations to satisfy client needs (Samiee,
Chabowski and Hult, 2015).
The market selection process and its steps are mention as follow:
 Marketing objective- In the objective of international expansion is centre point for
organisation.
 Parameters for selection- Availability of raw-material, resources, market conditions,
competitive analysis, political and economic conditions are some major key aspects that
is essential to analyse business in other market area.
 Preliminary screening- In the screening of business factors all business decision must be
analysed by market.
 Short listing of market- After screening of markets the organisational analysis most
favourable aspects for business.
 Evaluation and selection- All the aspects which are short listed will be evaluate by
organisation to select most appropriate from them (Surugiu and Surugiu, 2015).
 Commercial production- With the positive response the organisation analysis all
commercial products that are related with goods and service activities in order to
implement them with practical approach.
Advantage and dis-advantage of each market entry strategy
There are various strategies are monitored and implemented by AIRDRI to enter into market of
Germany for increasing their business size are international level.
Licensing
Merits- It works as a major opportunity for creating passive income.
This is easy and simple for organisation to enter into global market.

Organisation faces low risk to manage its business.
There are various challenges in market to make areas according to identifying different
management in making right areas.
With this areas it is also used in making different aspect to make better aspect that lead to
make and agree license with right areas.
Demerits- competition to get license is too high.
The work of licensee depends on the licensor.
Licensee can use misuse of intellectual rights and property provided by licensor.
Exporting
Merits- Economical value of organisation and country both are improved.
Competitive edge will also be achieved by exporting at local level.
Demerits- Rules and regulation such as Tariff barrier generates challenge to perform export
activities.
Exporting cost fluctuates with change in country rules.
Without understand of international market it is complex to manage trade through export
(Schmid, Grosche and Mayrhofer, 2016).
This is also identified management face challenge to work with exporting because buyer
country develop strict rules such as to charge high tax from seller or exporter to trade in
countries.
Another challenge which is faced by management relates with managing of work as
sometimes negative or complex challenges to work in proper manner.
Franchising
Merits- It is related with cost expansion of business.
New market areas are covered through expanding business.
Demerits- Investment amount of capital is too high.
Due to legal formalities it is a time consuming process.
With the franchise management is able to increase their market share. This also provides
areas to deal in right manner by engaging local organisation.
Most of the franchiser does not provide all rules and regulations to manage business due to
which task are not completed in proper manner.

Joint venture
Merits- Risk, profits and resources all are shared by parties.
Joint venture follow simplify structure so it is easy to follow.
Demerits- It is difficult to follow and implement right strategy among both organisation.
Conflicts and confusion between organisations is too high due to difference in workforce.
In last the joint venture to make different aspects leads to analyse different area through
which task is complete in right manner.
Local organisation not generate contract with foreign enterprise as it create challenges for
them to increase customer base.
Recommendation and conclusion on how and why the organisation must enter into international
market
With the above analysis it is identified that AIRDRI must expand their business among
other countries specifically Germany. To enter into international market management follow the
methods of joint venture so management easily formulated partnership with other business
particularly with a local business organisation (Tassabehji and Isherwood, 2014). It helps them to
control business in a particular country as it is essential to gain overall knowledge of market in
which organisation perform its business. Some of the recommendations that are followed by
organisation while joint venture is as follow:
 Profits of the organisation which is shared by organisation must be clear and
transparent.
 Strategies that are related with leadership and management is used by organisation to
perform business operations in effective manner.
 This is also important that market analyse all customer preference to analyse all
market conditions.
Challenges and opportunities exists at international market level
Globalisation is generating opportunities as well as challenges for operating organisational
business at global level. Economic growth for business is depends majorly on the market of
globalisation but it also generates challenges that impacts on company performance. Some
challenges and benefits from perspective of AIRDRI are mention as follow:
Challenge faced by organisation

 Company structure- Local and multinational market both are different from each other
so at time of managing business according to international market conditions. This is
mandatory for organisation to improve its structure which is not possible to change or
modify in short time period.
 Foreign laws and regulations- Management of AIRDRI also face challenge at the
time of performing operations and functions according to international rules. This refers
due to change in laws such as high tax rate directly impacts on organisational rules and
regulations.
Benefits
 Increase in foreign income- Each country promotes their local organisation for
managing and performing their work according in international market so it is to earn
more amounts of profits and increase in market share. Moreover, AIRDIR utilise
globalisation for enhancing foreign revenue that leads to earn more income.
 Improve in investment- Globalisation also improve the investment level through
deciding management aspect into short term as well as long term aspect. So transparent
goals helps global organisation to decide and make right decisions for investing in
organisation goals and values.
LO 3
Local and global debate with key arguments
With the increase in business size as per global market it is analysed that each business
must exposed its operations and functions. This also results that organisation is performing there
work to understand need for gaining top position in market. Global marketing also increase and
allow the business and its management to perform work that satisfies the needs of international
market and large number of customers. Along with this there are various ways if international
marketing emerge business market and change the needs of customers to perform their work in
effective manner (Velazquez Abad, 2017). This also leads the company to increase business area
and its operational activities. In context of international marketing, business and its productivity
both are increasing productivity. It is also analysed that international market increase goodwill of
company at global level.

On the other hand, local marketing restrict the market for business as it offers a small area
for business. Along with this it is also analysed to control market and provides their products to
limited number of customers. This also determines that it is complex for organisation to perform
its work activities effectively due to low cost investment. Along with this due to low sales it is
complex for organisation to earn sufficient amount of profits. In the last, due to engagement of
low level customers it is also restrict business houses to increase its market area.
Product, promotion, pricing and distribution is differ when it is implemented in international
market
Marketing mix- The term marketing mix refers to the combination of different factors that are
controlled by management of AIRDRI for influencing consumers. The main purpose of
implementing marketing mix is to enhance sale of company products with in the global market.
It considers that all tasks must be identified with motive of designing task that is used to transfer
and promote AIRDRI products in global market.
Product- AIRDRI manufacture products such as hand dryer and add more value to promote and
sale them in international market. This increase company profits and goodwill in global and local
market. There are various products managed by organisation that leads to manage functions
properly through enhancing product range for satisfy need of international customers.
Price- The competition in international market relates with cost so to enter in global market new
cost strategy is implemented that helps to gain competitive edge in international market. Price
skimming strategy is implemented by management to decide right and actual price of goods that
helps to enter in global market.
Place- In order to transfer products in multi-national market AIRDRI manage it warehouse near
the airport and port. Moreover, Organisation is focused to sale its products from those places
which are near to transport. So goods are transfer easily in international market.
Promotion- For promoting the business with low cost at large area specifically in the global
market AIRDRI management utilise digital tools for attracting international buyers. Social and
digital media strategy is used by management for promoting company products as all individuals
easily interact with other through use of social media.
There are various strategies used by the organisation such as AIRDRI while performing
their business and selling its products into global market. This is also impacting on various
characteristic that relates with demand and supply of products in the market. All strategies are

developed with determining key aspects which are product, price, promotion and distribution.
Demand of product impact on price policy of organisation so that demand of customers must
match in profitable manner. Along with this demand of customers and target market also impact
in promotion policy because company formulate promotional policy to attract international
customers. Further, strategy must be develop that it is not impacting on the products and services
provided by organisation (Zhong and et. al., 2016). Distribution channel depend on supply chain
with in the overall market that is leading to manage business by supplying products at a large
level. So it is essential for organisation to implement chain as per international market.
LO 4
International approaches for marketing
With implement of right and effective approaches for marketing it is easy for organisation
to increase size of operations at international market. Therefore, with the objective of company it
is analysed that market conditions of organisation is internationalising business towards a
particular country. Moreover, this approaches also leading company to increase their business
size that is enhancing the market area to attract and grow market development of company.
AIRDRI implement two approaches that lead to grow business size in Germany.
Centralised approach- According to this approach the decision making power of
organisation holds in the top level management. There are various task and operations are
implemented which is used to perform business according to international level standards. Along
with this it is beneficial for international management in which marketing team concern to
approve strategy from top level. This results all operations are performed with accurate manner
that leads to gain desired outcomes.
Decentralised approach- In the decentralised approach each and every department of
the organisation is impacted for performing organisational work. The management of the
AIRDRI allow all departments to make decisions on self-basis. Due to which it is easy to take
fast decisions but in this top management determines that department results is not impacting on
goals of organisation. The focus to implement decentralised approach is to work with motive of
formulating and implementing innovative ideas to perform all operations as per international
level.
Porter five forces

Threat of new entrant- This is low because market is providing products related with hand dry
industry. So this force is low in market that creates complexity for new company to enter into
business of hand dry industry.
Bargaining power of byers- Customers are the king of market which is used in making areas
that leads to buy company products. So they are high in power as customers provide profits to
business.
Bargaining power of supplier- In context of this it is identified management is managing
business as there are various tools and techniques requires which are easily available. So it work
as positive point because supplier is low in market.
Threat of substitute products- Local organisation is generating challenges through providing
support to substitute products. So this force is high in market which generates complexity for
AIRDRI for managing work in proper manner.
Competitive organisation- The competitive force is moderate in market that leads management
for supporting organisation to manage its business in proper manner. It create complexity to
work in proper manner.
Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach.
The organisation operates with various motives and for this they offer various products and
services to the customers. The nature of the products so offered by them is dependent upon the
taste and preference of the customers of the region that they are serving. The behaviour and the
attitude of the organisation in the process of international marketing are known as international
marketing orientation (Schmid, Grosche and Mayrhofer, 2016). With the help of this they
identify various strategies and can take various decisions from the headquarters for the
subsidiaries. Different types of orientation are given below:
 Ethnocentric orientation: This is the types of orientation in which all the policies are
formulated in the home country while all the subsidiaries need to adopt such practices.
The subsidiaries are not given authority to formulate strategies as per the needs and wants
of the customers of the country where they are operating. It is due to the fact that the
management of the parent company consider them as more capable of formulating
various strategies, polices and in taking crucial decisions.

 Regiocentric orientation: In this type of orientation the company identifies the
similarities among the people in different countries on the basis of their culture,
economy, taste and preference, lifestyles etc. This enables them to analyse that to what
extent they can use similar strategies and policies in different counties.
 Geocentric orientation: This orientation creates a vision that the entire world is a single
market and businesses can move throughout to serve the customers. For this standardised
strategies are adopted by the company so that they can reach to a large number of people.
The organisation needs to undertake the market analysis so that they can understand the
needs and wants of the people of that country. This is because on the basis they can
identify whether to operate with similar strategies or not.
Polycentric orientation: In this orientation the company allows their subsidiaries and branches to
formulate their own strategies and policies as per the prevailing situation in their market
(Samiee, Chabowski and Hult, 2015) Along with this they have been provided authorises to take
various decisions so that they can be successful in that market.
Basis Home orientation International orientation
Perception of
market
In this orientation the focus is laid
on the similarities between the
internal market and the in-house
market conditions as it will make
the expansion easier.
In this orientation the entire world is
considered to be a single market.
Strategy to be
adopted in
market
Existing domestic strategy can be
used in international market
Either standardised strategy can be
used or as per the prevailing market
condition strategy are formulated.
Merits Lesser requirement of funds and
efforts.
A large market can be catered.
Demerits Scope for expansion is limited. Standardised strategies may not be
suitable to the market condition in the
new market.
Recommendations for the company
On the basis of the analysis of various approaches of orientations Aridri is recommended to
adopt ethnocentric approach while expanding their business to Germany. This is because they

have better command on their existing policies and practices, so they can effectively enter new
market with the same policies (Navarro-García, Schmidt and Rey-Moreno, 2015). It can be
possible due to the fact the taste and preferences of the people in Germany are quite similar to
that of the people in the country where they have their existing operations. It will enable them to
effective manage their national and international operations.
CONCLUSION
In the last, by the above report it is summarised that expansion of business is an essential
aspects for each business organisation. Therefore, in order to expand and match with needs of
international marketing management understand and implement all crucial aspects for business.
This also refers that company concern to gain and generate effective outcomes such as increase
in sale of organisational products and profits. Further, it is also mandatory for business to
evaluate and monitor all opportunities that is related with international marketing in order to gain
sustainability in international market.

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