Scope and Key Concepts of International Marketing

This report discusses the scope and key concepts of international marketing, including the rationale for marketing internationally and the various routes to market. It also evaluates the key criteria and selection process for entering international markets. The chosen company for this report is Airdri Group, a well-known company in the local market area of the United Kingdom.

International
Marketing

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
TASK 1............................................................................................................................................2
P1 Analyse the scope and key concepts of international marketing...........................2
P2 Explain the rationale for it to want to market internationally and describe the
various routes to market the organisation can................................................................3
TASK 2............................................................................................................................................5
P3 Evaluate the key criteria and selection process to use when considering which
international market to enter..............................................................................................5
P4 Explain, using examples, the different market entry strategies, including the
advantages and disadvantages of each..........................................................................7
TASK 3............................................................................................................................................9
P5 Present an overview of the key arguments in the global versus local debate.....9
P6 Investigate how the product, price, pricing and promotional distribution approach
differs in a variety of international contexts...................................................................10
TASK 4..........................................................................................................................................12
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt.....................................................................................................12
P8 Compare home and international orientation and ways to assess competitors,
outlining the implications of each approach..................................................................12
CONCLUSION.............................................................................................................................13
REFERENCES............................................................................................................................14

INTRODUCTION
International marketing can be define as a business activities in which company
is planning to promote as well as advertise its products and services to international
market area (Czinkota and Ronkainen, 2013). This is considered as a most effective
way to enhance organisational customer bases as well as gaining more profits. By
marketing products and services at international level company will be able to attract
more and more customer towards business. This business activity is very helpful in
overall enhancing the business performance as well as achievement of organisational
objectives. There are various challenges faced by company when it is conducing its
business operations at international market area. This is considered as a way though
which a company will be able to identify the need and requirement of international
customers as well as full fill their wants. Chosen company for this report is Airdri Group.
This is a well known company which is dealing in local market area of United Kingdom.
This company was established in 1974 and founder of this organisation was Peter
Philipps and Perter Allen. Airdri company was founded in Oxfordshire, United Kingdom.
There are different types of product offered by this company which is very helpful in full
filling the requirement of customers. Product range of Airdri organisation is The Airdri
Quantum Hand Dryer, The Airdri Quad Hand Dryer, The Airdri Quest Hand Dryer and
many other products. This report includes the concept as well as scope of international
marketing and various routes has been evaluated that can be used by organisation to
market internationally. Key criteria and selection process has been evaluated that
should be used while international marketing. Various marketing strategies has been
identified with their advantages as well as disadvantages. Difference between global
and local marketing as well as different approaches regrading product, price and
promotional distribution has been investigated in context of international market.
Various marketing approaches has been analysed as well as comparison between
home and international orientation are evaluated.
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MAIN BODY
TASK 1
P1 Analyse the scope and key concepts of international marketing.
International marketing can be refers as an idea through which company is
planning to expand its business activities at international market area (Armstrong and
et. al., 2015). It is very important for growth and development of an organisation to
enhance its business activities in new and international market area. This will help in
attracting more customer towards business as well as expanding organisational
activities at new market area. International marketing includes set of activities that will
lead to promotion as well as advertisement of business at international market area.
Airdri company will be able to market its products and services at new area. This will be
very helpful in attracting customers as well as enhancing market share of respective
company. This will help in gaining competitive advantage over other rival companies as
well as increase its profits.
Scope of international marketing
There is a wide scope of international marketing for Airdri company. International
marketing can be describe as a way which is majorly align with the flow of products and
services towards customers of new market area (Akaka, Vargo and Lusch, 2013). This
will help in developing it business as well as its activities at internal market area. Scope
of international marketing in context of Airdri company is mention below.
Imports – This is considered as a way of marketing products to potential
customer by importing products from any other country. Importing process is considered
as easy as well as impactful way of international marketing. Through this process Airdri
company needs to import products that is helpful in meeting with the needs and wants
of its targeted and potential customers.
Exports -In this company will be exporting its finished as well as semi finished
product to new international market. This is an very effective process in order to earn
more profits by attracting more customers towards organisation. Exporting is a process
in which Airdri company will be identifying needs and requirement of its products in new
international market area. Exporting has wider scope for respective company as it will
directly lead to increment in customer bases as well as profits.
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Contractual agreements – This refers to way in which company is conducting
its business operations at international market area. Contractual agreements is pact
between companies in which they are expanding sales of product and services at new
market area (Amankwah-Amoah, Boso and Debrah, 2018). This is very in achievement
of new business opportunities for its growth and development.
Fully owned manufacturing – When a company is completely manufacturing
its products and services to new international market area with the motive of full filling
customers requirement. In fully owned manufacturing respective company will be own a
new business at new market area.
Key concept of marketing
There are various concepts of business which is linked with international
marketing. Key concepts of international marketing in context of Airdri company is given
below in detail. Domestic marketing – In this type of marketing process, company is generally
targeting customers of local of domestic market area (Baker and Saren, 2016).
All those companies which is performing domestic marketing activities have
motive to attract more local customer. Comparative marketing – In this type of marketing, organisation will be using
different ways as well as methods to promote and market its products to potential
customers. Comparative marketing is a way in which company needs to identify
similarities or dissimilarities between different marketing activities.
 International Trade – This is considered as a wide concept in which company is
planning to promote and advertise product and services at international
marketing area. International trade marketing is conducted with the motive of
influencing customers in order to earn more profits.
P2 Explain the rationale for it to want to market internationally and describe the various
routes to market the organisation can.
There are various ways through which Aridri company will be able to attract more
customers as well as gain comparative advantage over other rival companies. This
company needs to operate its business functions at international market area as well as
expand its business activities (Beck, Chapman and Palmatier, 2015). By gaining entry
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at international market area this company needs to perform business operations. This
will be helpful in sales products to customer outside one country. This is significant for
Aridri company to grow and expand business operations as well as enhance its
business performance.
Routes to market internationally
There are various ways through which a company will be able to market its
products and services at international level. It is very important for Airdri company to
analyse as well as evaluate each and every routes. This will be very helpful in selecting
the most appropriate way to market and promote company's product and services at
international level. This company can easily market its product as well as attract large
number of customers towards organisation. Airdri company is offering high quality
product and services to customer so it is essential for company to select the most
appropriate route for international marketing. This company can use two different types
of routes which will help in enhancing marketing activities at international level. The two
routes for respective company is direct route and indirect route. Both of these two
routes are mention below. Direct routes – This includes all those channels which will help in organisation to
direct communicate as well as market its products and services to customers
(Bianchi and Mathews, 2016). This routes does not include any indirect channel
or intermediaries between organisation and customers. Airdri company will be
able to advertise as well as promote business activities in its products and
services to targeted customers. In direct routes respective company will be able
to use all those business channel which lead to sale manufactured product to
customers as well as earn more profits. This route is helpful in develop better
relationship with customer and gaining correct feedbacks.
 Indirect routes – This route of marketing products and services at international
level includes that company will be taken help from any other party. Indirect route
to international marketing refers to the way in which respective company needs
to contact with any third party as well as hand over marketing activities. It is
responsibility of third party to promote product manufactured by Airdri company.
This company can obtain indirect routes channels of marketing its products as
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well as gaining attention from foreign customers. This includes alliance partners,
channel partners, system integrators , OEM partners and many more. Some of
indirect routes are mention.
Alliance partners – This refers to a business partner which is helpful for Alliance
partners to enter into international market area as well as distributing products and
services to potential customers (Brouthers, Nakos and Dimitratos, 2015). Alliance
partner are the group of which is smaller in size as well as helpful in business initiatives.
Channel partners – Channel partners are the organisation which includes
expertise to conduct business marketing activities at international level. This is a indirect
route which will influence the customers as well as attract them towards organisation.
This is considered as an effective way in which company is planning to enter into new
market area. Channel partner includes technical expertise as well as distribution of
products to potential customers.
It can be recommended that for Aridri company should adopt indirect route for
entering into new market area. For this company channel partner will be more
appropriate for conducting business activities at international market area. This route
will help in perform business activities with latest techniques as well as technologies.
TASK 2
P3 Evaluate the key criteria and selection process to use when considering which
international market to enter.
It is very important for company to select as well as chose the best as well as
most appropriate market area. This will be very helpful in enchaining the overall
performance of organisation (Christodoulides, Cadogan and Veloutsou,2015). Aridri
company needs to grow and develop its business operation at international market
area. This will lead to earning more business profits as company is entering into new
market area. It is essential for respective company to analyse as well as evaluate
selection process in order to consider most appropriate market area. Selection process
includes various steps which is mention below in detail.
International marketing objective – This is considered as a first step in which
company is planning to expand its business as well as planning to enter into
international market area. Respective company will be selecting the market place as per
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its goals and objectives. This will be done by identifying as well as evaluating the
culture, ethical, religious values, legal as well as economical factors.
Parameters for selection – This company will be selecting international area by
analysing as well as evaluating different parameters (Hoppner and Griffith, 2015). There
are various parameters that needs to be consider by respective company such as
availability of raw materials, market situations, governmental regulations, rivalry and
many other factor. This will help in selecting better area which is appropriate as per
organisation.
Preliminary screening – After analysing as well as evaluating all parameters for
selection process this company need to screen parameters. So that right and
appropriate market area can be identified as well as most suitable market area can be
chosen. This will help in identifying different factors such as behaviour of consumers,
population size, economic structured as well as income of customers.
Analysis and Selection – When preliminary screening is done respective
company needs to analyse as well as select the most preferred market area ( Jean and
et. al., 2016). For company can needs to analyse each and every market area in which
Airdri company can conduct its business operations. This will help in selecting the most
appropriate as well as suitable market area that will directly lead to growth of
organisation.
Test marketing – Once respective company has chosen the market area this
organisation needs to conduct a test marketing. This could be done by selling some
product at selected market area in order to gain proper. This will help in providing
proper understanding about the market area.
Commercial Production – Respective company needs to analyse the results of test
marketing in order to analyse as well as evaluate positive as well as negative impacts.
This will leads to determining the correct international market area for Airdri company.
Key Criteria
There are different criteria that needs to be consider by respective company in
order to select the most appropriate international geographical market area for Airdri
company.
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 Infrastructure facilities: It is essentials for respective company to analyse the
infrastructure facilitate. This is considered as key criteria for selecting
international market place as company needs to chose area which better
infrastructure facilitate. This will play a crucial role in effective and efficient
functioning of organisation. Nature of Competition: Competition will lead to affect the overall business
activities as well as performance of organisation (Katsikeas and et. al., 2016). It
is important for Airdri company to select the most appropriate market area which
have lower threat from competition. This will help in attract more customers as
well as gaining competitive advantage over other rival companies.
 Laws and Regulations: Each and every country have different rules and
regulation. It is essentials for Airdri company to follow all rules and legislation for
smooth functioning of organisation.
P4 Explain, using examples, the different market entry strategies, including the
advantages and disadvantages of each.
There are many business strategies that will help respective company to perform
business operations in better and effective manner. It is essentials for Airdri company to
carefully evaluate each and every strategies by determining its advantages as well as
disadvantage (Martin and Javalgi, 2016). This will be very helpful for company to
analyse various marketing entry strategies. The major marekting strategies that could
be used by company is export, licensing, franchising and many others. Different market
entry strategies are mention below with their advantages as well as disadvantage.
Export
This is considered as an useful strategies for entering into new market area.
Airdri company will be able to expand business operations as well as sales products
and services to new market area. Exporting refers to a process in which company will
be offering manufactured product to new market area. Respective company will be able
to export its products to international market by foreign agent. This company will be able
to distribute its manufactured product to new market area. Advantages – Exporting of products including very low cost for business to entry
into international market area. This will be advantages for respective company as
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it will have moderate financial risk. Exporting agent of respective company will
help organisation to overcome to difficulties to enter into new market. Disadvantage – The disadvantage of exporting for respective company will be
that it will provide low profits to business. Respective company will be completely
dependent on the agent for sales and profits of organisation.
Licensing
This refers to the taken legal permission to perform business activities at
international market area. Licensing is a process in which is related to granting an
official licence to company for conducting business operations (Richter and et. al.,
2016). Airdri company can take license from government in order to perform its
organisational activities at international market. This will provide right to sales
intellectual property to Airdri company that will be used for commercial purposes in
international market. Advantages – Licensing includes very low cost to enter into new market area.
This will help in providing a proper knowledge about the local conditions of
market area as well as customers. Licensing includes low financial risk for
respective company. Disadvantage – This includes lack of control over maintenance of organisation
as well as its business activities. Airdri company will have less control over its
organisational activities and it can have negative impact over organisation.
Franchising
This refers to the arrangement between one organisation to other organisation.
Franchising can be describe as a legal agreements among franchisee as well as
franchisor which includes different legal rules and restriction for both organisation. In
this strategy to enter into new international market area franchisee company needs to
par time fees as well as commission to franchisor includes share in revenues. Advantages – This will be very helpful for Airdri company as it will lead to growth
and development of business at international market area (Rosson and Ford,
2016). Franchising can be consider as an advantages for respective company as
it includes chances of rapid foreign expansion.
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 Disadvantage – In this company need to share its profits as well as revenues
with other company. This includes huge control over the cost of organisation that
is required to perform business operations. There is high chances of disloyalty
from other company.
TASK 3
P5 Present an overview of the key arguments in the global versus local debate.
It is essential for this company to compare local marketing with global market.
This is will be very helpful in analysing which marketing techniques and method is more
useful for respective company. Comparison between both local and global marketing
will help in determining which marketing should be used by company for enahncing its
sales as well as profits. Key argument as well as difference between global and local
marketing in mention below.
BASIS LOCAL MARKETING GLOBAL MARKETING
Risk and ease This type of marketing is
considered as
comparatively easily as
company is well known
about market area.
Global marketing is quite
complex as well as includes
huge risk for organisation.
Scale of operations In local marketing all
activities and business
operations is conducted at
local market area.
In this marketing respective
company needs to conduct
its production, sales,
promotion and other
business activities at
international market area.
Consumer behaviour Local marketing includes
behaviour of customers as
more or less smiler.
In global marketing
customers of different
market area have different
requirement as well as
needs and behaviour.
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Example Airdri company can be
considered as a most
suitable example for local
marketing.
For global marketing Airbnb
is a good example. This
company is using different
tools and techniques to
promote its business
products and services.
Though the able comparison it can be concluded that global marketing is very
effective process that needs to be used by respective company. This will help very
helpful in attracting more customers towards business.
P6 Investigate how the product, price, pricing and promotional distribution approach
differs in a variety of international contexts.
Marketing mix play a crucial role in development of business as well as its
performance. It is very important for company to use appropriate approaches in order to
perform business operations in better and effective manner. Marketing mix includes 4
P's such as product, price, place and promotion (Skudiene, Auruskeviciene and
Sukeviciute, 2015). It has been analysed that all nations are very different from each
other and have unique culture, customer behaviour, languages, demographics and so
on. In order to expand business operations at Dubai market area or any other
international market its is essentials for Airdri company to investigate its product, price,
distribution and promotion in better manner.
Element United Kingdom International Markets
Product This organisation is
developing hand dryer
products which are as per
need and wants of local
customers. the major
product rage is The Airdri
Quad Hand Dryer, The
Airdri Quantum Hand Dryer,
This company needs to
develop as well as
manufacture products as
per requirement of
customers. Airdri company
needs to analyse needs of
new customer area.
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The Airdri Quest Hand
Dryer and various other
products.
Price This company is setting
pries as per the cost
occurred while
manufacturing the products.
the motive of pricing
strategy is to earn profits
after recovering costs of
manufacturing.
This company should use
different pricing strategies
as per need and wants of
different market area. this
company needs to develop
offer prices which will help
in gaining competitive
advantage over other rival
companies.
Promotion Currently respective
organisation is majorly
using traditional methods of
promotion. The methods
that is used by respective
company is print media
advertising, word of mouth
and so on.
For international marketing
it is essential for this
company to select the most
appropriate method in order
to attract more and more
customers. this
organisation should use
modern method such as
digital media, social
networking sites and other.
Distribution Airdri company is
manufacturing its product
as well as distributing
products as per the need
and want of customer.
potential customer can
directly purchase products
from company.
This company is use
different ways to distribute
its products and services to
customers Airdri company
can sell products to
wholesalers, retailers,
international trade show,
channel partners and many
more.
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TASK 4
P7 Explain and analyse the various international marketing approaches your client
organisation can adopt.
There are many approaches that could be used for international marketing and
this will be very helpful in conducting marketing activities in more effective and efficient
manner. Airdri company needs to adopt most appropriate and suitable approach from
marketing at international level. Different approaches in context of Airdri company is
mention below.
Multinational – This company can provide its business operations at multinational
market area. There are many companies which is offering its products and services to
different nations. Multinational companies have its facilitates or outlets at different
locations. For example McDonald’s.
Global – This includes all those organisations that are located at different parts of
the globe. Global organisations have different organisational culture as per the country
in which it is located (Surugiu and Surugiu, 2015). These type of companies are
providing its products and services across the global as well as attracting more and
more customers. For example Startbucks, Airbnb etc.
Transnational – All those companies which is using transnational approach in
international marketing are considered as quite complex in nature. These companies
are operating its business functions at more than one nation as well as providing its
products and services to different part of the world. For example Nestle.
P8 Compare home and international orientation and ways to assess competitors,
outlining the implications of each approach.
Difference between home and international orientation is mention below and it also
includes its implications as well as ways to assess competitors.
Home orientation – This refers to the approach which is used by company in order to
promote as well as market its products and services. In home orientation approach
company will generally tend to identify the similarities between market. Organisation
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will assume that all those products and services that are successful in local or domestic
market area which also be successfully in other market area.
Implication: This will be helpful in developing better coordination among international
as well as domestic market area of Airdri organisation.
Ways to assess competitors: This approach includes that the power of threat from
rival company is low. The organisation will generally assumes that the competitor will
not be able to effective the respective company as well as lead to cause no or little
damages to business operations.
International orientation – This approach is based on the assumption that there is
differences as well as similarities between the different market area. It is essential for
company to understand these differences as well as similarities in order to gain success
at international market area
Implication: This type of marketing approach will help in respective company to gain
competitive advantages over other rival companies.
Ways to assess competitors: In this is as assume that there is high threat from
competitors and this will lead to have impact over organisation.
CONCLUSION
From the above report it can be concluded that it is essential for company to select
the most appropriate approach as well as method to market its products and
services at international level. There is very wide scope of international marketing
as well as have different routes. It is significant for company to evaluate key criteria
and selection process for entering into international market. Company needs to
develop strong strategies and analyse approaches. It is important for company to
compare home and international orientation approach for organisations.
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