International Marketing: Scope, Key Concepts, and Rationale for Business

International Marketing

Table of Contents
International Marketing...................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Scope of International Marketing............................................................................................3
2. Key Concepts in International Marketing:..............................................................................6
3. Rationale (reasons) for a business to go to international markets...........................................8
4. Various routes to entry...........................................................................................................10
LO2................................................................................................................................................11
1. Key International market selection criteria............................................................................11
2. International market selection process...................................................................................11
3. Market entry strategies..........................................................................................................12
2. Discuss the advantages and disadvantages of each entry strategy........................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
International marketing refers to the application related to the principles of marketing
helps to satisfy wider needs and choices of differ people resides across the national boundaries
(Alnawas and Hemsley-Brown, (2019). It undertakes the varied marketing efforts in more than
one nation in order to attain opportunities in positive manner known as global marketing. Global
marketing proved beneficial in designing the marketing mix which includes product, price, place
and promotions by customizing as per the preferences of differ kind of individuals in order to
remain competitive in marketplace. Respective report is based on the H&M which is an Swedish
multinational organization clothing retail known for fast fashion clothing. Respective report is
based on the understanding of the way marketing contributes in business strategy in international
context. Further it includes the entry modes for international marketplace by defining their
success factors potentially for respective organization. Finally it includes the way to organize and
evaluate international marketing efforts in terms of multinational, global, transitional and meta
national level in order to remain competitive in marketplace.
MAIN BODY
International marketing:
In the words of Albaum and Peterson, international marketing is the bundle of various
actions or activities that related with products and services in both direct and indirect manner
cross national borders.
In the words of Jain international marketing is cross the national boundaries for providing
satisfaction to consumers in regards of products and services.
L01
1. Scope of International Marketing
International marketing is very much important not only for organization but also plays key role
in economy by gaining employment opportunities for people positively (Collinson and Liu,

(2019). In context of H&M they operate at international level by acknowledging its scope in
wider organizational context that are as follows:
Promotion of peace among nations: Global expansion proved beneficial not only for
organization but also to each one that attach with it. All the major activities associated with the
business such as development, production and marketing majorly in context of high tech
products. in addition to organizations interact with the people helps from all countries to meet
face to face important part of interaction with employees from various nations as part of
recreation and commerce. All kinds of interaction leads towards mutual gain with business
relationships and personal relationship that get in business outcomes in potential manner.
Reduce risk of business failure by serving several foreign markets: scope of international
marketing is very much important as it enhance the global markets opening for businesses
(Gkarane And et.al., 2019). In that series the time of manufacturing of products in a country is
very much cost effective and nation gradually become the hub all kinds of exports. All activities
lessen down risk of failure as organization operates in many nations simultaneously. In context
of H&M which is a market leader by analysing needs and wants of consumers can be able to
enter into global market place as it operates in 74 countries with 5000 stores at world wide.
Growth opportunities majorly in emerging economies: At world wide, multinational
strategies provides growth opportunities in emerging economies. As it is studied that emerging
economies such as BRICS and MINT faces problem of unemployment and recession in economy
that impact on their level of profitability. So operations at international level of H&M contributes
in respective economies positively.
It promotes the utilization of talents from foreign countries: it is very much important for an
organization to recruit one of best personnel within the organization by finding talent from
foreign nation proved beneficial for organization in obtaining desirable outcomes.
It provides opportunities to reduce operational costs by producing and sourcing from low
cost producing countries: It is proved very much beneficial for organization by
internationalization to align the production and distribution in the low cost country. It helps to
reduce cost potentially to provide one of best pricing to the end users. in that regards it is very
important for an organization to reap important outcomes from foreign nations to remain
competitive in marketplace.

It provides opportunities for the promotion of bilateral agreements: international marketing
and relations proved very much potential for an organization. it helps in building bilateral
agreements that assist in enlarge business opportunities by finding out growth and development
in positive manner by using it organization can be able to create union of people at international
level that work for self interest of one another.
Increase profitability: An organization that trades products with other external countries is
reaping the benefits of a high tariff activity because residential advertising is not as profitable as
a global presentation. The misfortune perpetrated by an organization in local advertising can be
compensated by the advantage obtained by the rates in the universal promotion. Remote trade
can be achieved by exporting goods to external countries. Consequently, the gain obtained can be
used for the introduction of basic goods, new hardware, and innovation and so on. This would
also encourage large-scale exchanges in the future.
Building global brand image: While your unique meaning in identifying around the world may
vary as indicated by your stated goals, the simplest way to clarify this term is how organizations.
a system used to define their features and character in an endless scene. Logos from around the
world take their USP and look for situations that they can thrive outside of their immediate
country.
The most important thing to understand is that there is something else to celebrate around
the world besides creating a .com site and ensuring the transport of articles to different parts of
the world. Each area goes with their wonderful companies, the desires and desires of their
customers.
Benefit of economies of scale: Economies of scale are points of attention to costs that can occur
when an organization expands the size of its production and becomes progressively productive,
producing a reduced unit cost. This is because the cost of creation (calculation of fixed and
variable costs) is spread over several production units.
Economies of scale give larger organizations a bigger hand, the greater the business, the lower
the cost per unit.

2. Key Concepts in International Marketing:
The concepts in international marketing play very much important role, here are the some
important concepts are as follows:
Cultural awareness: While organizations deals in varies nations they encounter different culture
in that regards it is very potential to analyze or evaluate culture of specified country in order to
gain important insights (Mavragani, Nikolaidou and Theodoraki, 2019). In context of H&M, they
operates in almost all countries of the world and resides differ culture in terms of working,
expenditure of consumers, dressing patterns and many more. With the help of researchers
organization demonstrates taste and preferences of consumers in order to remain competitive in
marketplace.
International trade: International trade is the exchange of capital, goods and services across
borders or international territories because there is a need or lack of goods or services. In most
countries, this trade makes up a large proportion of gross domestic product (GDP).
Market trends: It is very much potential for an organization to acknowledge about trends
prevails in specified country on which they aimed to serve. In context of H&M they by
collecting knowledge regarding trends in market place in terms of fashion choices able to
provide one of best products and services to end users.
The global macro environment: Macro environment is very much important for an
organization as it helps to operate business activities in the foreign marketplace. before operating
in the international market it is very much potential for an organization to collect necessary
knowledge and information about macro environment factors such as political, social, economic
and many more. Respective factors helps in build strategies and tactics in order to remain
competitive in marketplace.
The global micro environment: while operating in the international sphere organization such as
H&M needs to understand the working practices and culture of specified nation that helps to
procure organisational goals and objectives in proper manner. by conducting the research
organization can collect potential data in order to reach at desirable outcomes in positive manner.
Consumer behavior: for an organization it is crucial to collect potential kind of knowledge and
information regarding consumers and their purchasing behaviour. Respective concept of