International Marketing: Scope, Concepts, Opportunities and Challenges

This document provides an overview of international marketing, including its scope and key concepts. It discusses the main differences between international and local marketing, the rationale for willingness to market internationally, and the opportunities and challenges associated with international marketing. It also explores the routes to market internationally and provides recommendations for market entry strategies.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Scope and key concepts of international marketing...............................................................1
Main differences between international and local marketing.................................................3
Rationale for willingness to market internationally...............................................................3
Opportunities and challenges associated with international marketing.................................4
Routes to market internationally and recommendation..........................................................5
Key criteria and selection process while entering international market.................................6
Market entry strategies...........................................................................................................7
Application of market evaluation criteria, entry strategies and recommendations................7
Conclusion and Recommendation..........................................................................................8
TASK 2............................................................................................................................................8
COVERED IN PPT................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International marketing can be referred to procedure of executing principles of marketing
at an international scale. This provides assistance to the organisation in gaining the attention of a
large base of audience. It is aimed at fulfilment of needs and preferences of customers across the
globe. This is a concept which emphasizes upon extension of local marketing strategies as well
as tactics of a company to a global scale.
This project is based upon understanding the concept of local and international marketing
in context of Ma Baker. This is a micro organisation engaged in bakery sector and providing
homemade and natural bread. The report consists of scope and concept of international
marketing, rationale behind organisation marketing globally and routes to market internationally.
Further, it consists of market entry strategies together with their merits and demerits. Lastly,
recommendations are given for the company.
TASK 1
Scope and key concepts of international marketing
As per the thoughts of Czinkota and Ronkainen (2013), international marketing consists
of practices, institutions and activities across the boundaries of home country which seeks to
generate, transmit and exchange products and services holding substantial value for stakeholder
groups as well as society.
According to the ideology of Armstrong and et. al. (2015), it can be determined that
international marketing is the execution of marketing capabilities as well as orientation within
global operations.
In accordance with the views of Akaka, Vargo and Lusch (2013), it is acknowledged
that international marketing is the accumulation of practices that seek to result in an exchange
which satisfies people within geographical boundaries.
Scope
In a general way, international marketing can be referred to as a concept which is linked
with the performance of business in more than one country and it also evaluates how well
products and services of a firm are aligned with customers of more than one nation. In today’s
modern world which is highly dynamic, this concept of international marketing is having a wide
scope which is also enhanced because of increasing globalization in business environment that
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has facilitated better interaction between economies and nations. Further, the scope of
international marketing is explained below:-
Import: This provides one of the easiest and simplest forms of international marketing
where organizations import products from some different countries and sell these items among
potential consumers of its own domestic market. Mainly, use of imports is made by organizations
to enhance their current or existing product line.
Export: Under this process companies mainly export finished or semi finished products
to international market or their related franchises with the perspective of giving them opportunity
or right to make sale of these items or goods in their local or domestic market for enhancing the
quantum of sales. The revenue earned through making exports are utilized by international
organisations to make payments of their imports and also to cover the cost of product
development and lead to increment in profit.
Contractual Agreement- This provides way for expansion of business or operations of
an organisation through entering in a contractual agreement with some overseas partners. When a
organisations plans to expand its business, international marketing aids in this process trough
providing opportunity for enhancing market share, volume of sales, customers base and overall
profitability through providing option of entering into contractual garrets with some international
or global partner.
Fully owned manufacturing- A firm which is having significant interest in foreign
market is having an option of establishing a fully owned manufacturing facility in that country.
The factors like government policies, cost differences, technology enrichment, etc. encourage an
organisation to set up or develop a production unit in abroad with the aim of gaining full control
over manufacturing process and quality.
Joint Venturing- Hereby, two companies can unite to gain access into a potential
marketplace for the purpose of facilitating market expansion. In this case, the investment, gains
and loss are decided in advance in relation to value as well as time frame. A number of times,
this proves to be an effective strategy for corporations to enhance the scope of international
marketing.
Key Concepts
A large number of concepts are linked with international marketing and these are
explained in a brief manner underneath:-
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Domestic Marketing- This concept of marketing is specifically targeted or focused only
towards the home or domestic country. An entirely domestic enterprise or organization is the one
that solely operates in domestic market only and has no intent or plan of going global or
expanding its business in international market.
Export Marketing- This is a concept which stresses upon the entrance of a firm into
markets other than its domestic territory, thereby facilitating an increment in market size.
Hereby, a company carries out manufacturing within the confines of home country and export
the surplus to a number of nations.
Comparative Marketing- When a large number of marketing systems and concepts are
studied together with the aim of ascertaining the similarities and difference between them, this
concept or process is known as comparative marketing in which comparison is made between
various marketing systems.
International Trade- This concept of international marketing is basically concerned
with flow or transfer of goods and services among different nations. The main purpose here is
about gaining information or knowledge about the monetary and commercial conditions upon
resources transfer between countries and balance of payments (BOP).
Main differences between international and local marketing
Local marketing can be referred as the act of marketing within the geographical area or
boundaries of a country whereas international marketing is associated with expansion of business
operation of an organisation outside the boundaries of domestic marketplace. While dealing with
local marketing, the company mainly holds deep knowledge and understanding about the
domestic or local beliefs and behaviour of customers and business environment but in case of
international marketing, it becomes more difficult and complex for a firm to judge or evaluate
the nature of customers existing in global market. Use of cheaper methods or strategies is made
for local marketing like discounts, special offers and advertisement in local newspaper. Opposed
to this, international marketing is executed by stipulation of marketing campaigns and plans.
Rationale for willingness to market internationally
Ma Baker is an established micro organisation conducting bakery operations at Fulham,
London and providing fresh, home-made and real bread to its wide base of customers. Awards
and certifications are grabbed by this corporation constantly in context of its home country.
Owing to this, immense success has been gained by Ma Baker in domestic market. This
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company is now planning to expand its business operation by marketing within international
marketplaces. It is right time for Ma Baker to expand at global level for increasing its existing
customer base and to improve its market share. At the time when Ma Baker will enter the
international market, it will have the advantage of grabbing the attention of a large number of
people through opening of an outlet or shop at the most appealing location of a nation. This will
help the Ma Baker in building and developing a brand image which is famous among people or
customers at global level thus, will provide a high stake in international market.
Beside this, with gaining entry into the international market, Ma Baker will become more
capable to deal or handle the risks and issues related with the conducting sale and marketing in
just one country. For example, if Ma Bakers only offers and markets its product in local market
for local customers and recession take place in the confines of United Kingdom, then it will
adversely affect the operations and sales of Ma Bakers also reduce its profitability. Thus, Ma
bakers is willing to and aiming at expansion of its business operations in international level as it
ensures stability in performance of organisation through ensuring continuous flow of revenues as
well as EPS. Thus, it is of immense significance for Ma Bakers to get entry in the international
market and operate marketing activities at global level.
Opportunities and challenges associated with international marketing
International marketing is a wide concept which encompasses opportunities as well as
challenges for the company opting for it. Such opportunities as well as challenges are significant
to be taken into account by Ma Baker so as to ensure that the entity does not face any adversity
while marketing internationally. .
Opportunities
The opportunities available to Ma Baker in relation to international marketing are:-
 The entity would be able to get access to excellent infrastructural developments of
foreign markets. This will allow Ma Baker to market about its product to a wider
audience so as to establish an extensive global market image.
 The enterprise can capitalise upon cost effective marketing strategies in order to captivate
the customers of international markets and thereby persuade them to make a purchase of
bakery items sold by Ma Baker. International marketing would provide advantage to Ma Baker for enhancing its existing
market size as well as positioning.
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Challenges
The challenges that would be faced by Ma Baker when marketing internationally are
given as under:-
 There are many words which hold different meanings in every country. Thus, Ma Baker
needs to ensure that it does not use any word which hurt the feelings of locale.
(Source: Different Meanings of Colours and Numbers in countries, 2019)
 People belonging to different countries have their own set of beliefs and religious value
which restrain them from consuming certain items. This needs to be taken into
consideration by Ma Baker while marketing about the bakery items offered by entity.
 Political constraints such as instability or extensive trade barriers tend to limit the scope
for company to facilitate international marketing by gaining access into new markets.
Routes to market internationally and recommendation
A company intending to market internationally have a number of alternatives. Thus, Ma
Baker is reviewing the routes to market so as to select the most appropriate while marketing
internationally.
Direct Route
This constitutes channels whereby the corporation comes directly in contact with
customers present in international markets with the aim of persuading them to purchase the
offerings of company. This can be prove to be an effective route to market for Ma Baker as this
would facilitate establishment of healthy and prolong customer relations, thereby retaining them
in the long run. Such direct route channels include sales representative, website delivery, mail
order catalogues etc.
Indirect Route
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Illustration 1: Different Meanings of Colours and Numbers in countries

This comprises of channels which need third party or mediator for persuading the
purchase behaviour of consumers. The examples of indirect routes to market include Alliance
partner, Channel partner, OEM partner, system integrator etc. These provide assistance to an
entity like Ma Baker to grab the attention of people in international markets.
On the basis of above discussion, it is suggested that Ma Baker should undertake the
indirect route to market internationally. In this regard, the most appropriate channel would be
Channel Partners like CDW, Carahsoft, Optiv, Insight as they have comprehensive knowledge
about technologies and consumer behaviour pertaining to each corporate industry. Thus, Ma
Baker would be able to take due advantage of their knowledge and enhance its revenues in the
long run.
Key criteria and selection process while entering international market
Market selection is important for Ma Baker to decide upon the country to target for
international marketing. This process is explained briefly below:-
International marketing objective: The location is chosen as per the objective stipulated
by company in relation to foreign market.
Parameters for selection: There are certain parameters which need to be considered by
Ma Baker such as accessibility to infrastructure and raw materials, magnitude of rivalry,
government laws etc.
Preliminary screening: The non potential locations are eliminated at this stage on the
basis of their screening in terms of population size, economic conditions, consumer behaviour
etc.
Analysis and Selection: The markets which are still under evaluation then undergo
feasibility study as well as cost benefit analysis.
Test marketing: At this phase, entity sells its products to a small segment of the selected
location to gain knowledge of customer reaction.
Commercial Production: Once the test marketing results are acknowledged to be
favourable, Ma Baker would start producing its natural bakery items in chosen international
market.
Key Criteria
While carrying out market selection process, Ma Baker would have to take into account
certain criteria for choosing a location. Such criteria include infrastructural development, level
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and nature of rivalry, rules and regulations which pertain to the market under evaluation for
selection.
As per the selection process and key criteria, Ma Baker has selected Dubai as the
international market.
Market entry strategies
There are several market entry strategies which can be opted by respective micro bakery.
These are evaluated underneath:-
Strategy Merits Demerits
Exports
 Low cost of entry
 Moderate financial risk
 Agent is able to overcome the
difficulties of entry
 Low profits on transactions
 Immense reliability on foreign
agent
Licensing  Low entry cost
 Lower financial risk
 Knowledge of local conditions
by licensee
 Threat of disloyalty of licensee
 Relatively lower income
(royalties)
Franchising  Possibility of rapid foreign
expansion
 Low entry cost
 Requirement of control cost
 Sharing of profits between
foreign franchisee & domestic
franchisor
 Possibility of franchisee’s
disloyalty
Application of market evaluation criteria, entry strategies and recommendations
Dubai is selected as the international location for expansion due to a number of reasons.
The strong economic condition of this place is one of the key considerations while taking the
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decision. The bakery market within UAE is constantly growing at the rate of 7% p.a. with the
passage of time. Ma Baker can attain growth by providing their natural and organic bakery items
to health-conscious Emirati customers pertaining to Dubai.
(Source: Retail Volume in Tonne - Bakery Products Subsectors in UAE, 2019)
Apart from this, it is recommended that the respective bakery should adopt licensing as it
allows low cost of entry and holds lesser financial risks.
Conclusion and Recommendation
It can be inferred that international marketing is a lucrative and effective way through
which entities can enhance their global market share as well as positioning. Marketing
internationally hold various opportunities and threats that need to be taken into account by a
firm. It is recommended that a firm should adopt Channel Partner (indirect route) as the route to
market as they have sound knowledge of market. Further, licensing is suggested to the firm as
this is a low cost strategy.
TASK 2
COVERED IN PPT
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REFERENCES
Books and Journals
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international marketing perspective. International Marketing Review. 35(4). pp.550-559.
Armstrong, G. and et. al., 2015. Marketing: an introduction.
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Bianchi, C. and Mathews, S., 2016. Internet marketing and export market growth in Chile.
Journal of Business Research. 69(2). pp.426-434.
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
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pp.610-626.
Jean, R. J. B. and et. al., 2016. Assessing endogeneity issues in international marketing research.
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Katsikeas, C. S. and et. al., 2016. Assessing performance outcomes in marketing. Journal of
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Richter, N. F. and et. al., 2016. A critical look at the use of SEM in international business
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Conference (pp. 66-69). Springer, Cham.
Skudiene, V., Auruskeviciene, V. and Sukeviciute, L., 2015. Internationalization model revisited:
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