An Examination of International Marketing for Amazon's Expansion

This report provides a comprehensive analysis of international marketing strategies, focusing on Amazon's approach to global expansion. It begins with an introduction to international marketing's scope and key concepts, followed by an examination of the rationale for companies to market internat...Read More

International
marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P.1. Analyse the scope and key concept of international marketing?.........................................3
P.2. Explain the rationale for an organisation to want to market internationally and describe
the various route to market they can adopt ?...............................................................................4
P.3. Evaluate the key criteria and selection process to use when considering which
international market to enter?......................................................................................................5
P.4. Explain with the help of examples, different market entry strategies including advantages
and disadvantages of each ?........................................................................................................6
P.5. Present an overview of key arguments in the global and local debate ?..............................7
P.6. Investigate how product, pricing, promotional and distribution approach differ in variety
of international context?..............................................................................................................8
P.7. Explain as well as analyse various approaches of international marketing which company
can adopt?....................................................................................................................................9
P.8.Compare home and international orientation and also way to access competitors outlining
the implication of each? ...........................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global marketing is an activity which involves various marketing related principles and
also cover the practices which are most effective in large level in International border to increase
Organisation presence in large areas of working. The organisation that was selected in this
assignment is Amazon as it is most famous multinational technology brand which had its
headquarters in Washington that concentrate on digital streaming, cloud computing, artificial
intelligence, e commerce. This organisation was founded by Jeff Bezos. It is founded on 5th'
July' 1994. The topics which were cover in this assignment are description of scope & key
concept related to international marketing , rationale of company who wants to do business
globally. Also make description to different routes to market which they follow. And also
describe what are the key criteria and selection process use by the company when considering at
the time to take entry in international market. It also describe that different market entry
strategies covers disadvantage & advantage . The report also covers the topic such as overview
of key argument in domestic as well as global debate. How marketing fix distribution approach
differ in international context are also include in this project. Various international marketing
approaches which is adopted by organisation is also explain. Comparison between home as well
as on international orientation and way to access competitors outlining the implication of each
are also done in it(Armstrong, 2018)
MAIN BODY
P.1. Explain the scope as well as key concept to marketing at global level?
SCOPE OF INTERNATIONAL MARKETING:
Today, markets and businesses are present in modern era which involves most dynamic
environment . As per current scenario context international marketing has large scope for
business expansion. Both modernisation & globalisation helps the businesses to facilitate with
good interaction and leads to enhanced the scope of international marketing. Export:It is just opposite to imports, here organisation sell their products and services to
international business as well as to their franchises after that importing party sold their
items in different locations of domestic market ( Armstrong, 2018)

 Import: This is most simplest and common method of international marketing. In this
products are imported by business from different areas of foreighn market than sale these
products to potential buyer in domestic market (Bertoli, 2019) Contractual agreement: It is great expansion opportunity to company by taking entry
into contractual agreement with overseas partner. As Contractual agreement tends to
enable organisation to expand business in global market with joining hands to foreighn
partners.
KEY CONCEPT OF INTERNATIONAL MARKETING Domestic marketing: Such type of marketing focused on making promotional plan and
organisation presence in home countries domestic market. International trade: Marketing notion is concerned most with developing effective flow
of services and goods in various different nations and also holding proper present various
market places (Cateora, 2020)
 Comparative marketing:In market , various marketing systems are present which
marketers use mostly. When comparison is done between concepts & systems with aim
of ascertaining differences and similarities it's called comparative marketing.
P.2. Describe the rationale in context to organisation to take entry in international market
and also guide different route to market which adopt by the company?
There are few specific reasons due to which Amazon expands globally. As these reasons
are explain in below bullet points-
 Key aspect of international business marketing for Amazon is to diversify revenues by
attraction other sources and also tends to introduce products for the purpose to diversify
audience base (Charter, 2017)
 Another reason is that to increase scope of Amazon by increasing their area of operation
and move towards different countries to work
As per the above rationales methods to take entry in market are suggested to Amazon to
move to different market of different locations.
 Franchising: This method is choose by most of the companies. As per this concept
Amazon will allow global organisation and owners of business to set their shops or

stores in global market. Use the name of company as well as brand image at the time of
selling products to customer or running business operations.
 Licensing : In licensing parent organisation who are interest to create there market
globally allows other local firms of international market to use their intellectual property
rights and to do business in global market place on their behalf (Gbadamosi, 2019)
P.3. Choose the most suitable selection process for the purpose to take entry in internation
market?
To take entry into new competitive environment is very critical task a it includes various
vital decision and stages which influence business expansion in global market area. So Amazon
need to be follow some process which is describe as follows :
International marketing Objectives: For export marketing objectives, this respective
stage is identified. In context to selected market where brand tends to stablish its stores to offer
various items & services at global level will be selected with regards to acheive objectives as
well as to capture large foreign customer base.
Parameters for selections: The parameters which is most significant need to be
understand properly by organisation once , they have selected the region which is most suitable
to their services & product. Thus Amazon consider some parameter like availability of raw
material, laws of government, appropriate infrastructure, aggressiveness of existing competitors
at the time of selecting market.
Preliminary screening:On the basis of screening and various factors like size of
population, buying potential of customer etc. various locations are eliminated which do not give
any potential to business.
Analysis and Selection: After deep study and analysis selection is done that provides cost
benefits to business.
Test marketing: In this stage where sample offering will offer by company to audience
around area in respect to attain knowledge regarding customer reaction and expectations and
liking from brand.
Commercial Production:As it is last stage it prevails when tested marketing phase is in
favour of organisation, than it starts producing as well as selling their items in selected
marketplace which is globally available in unknown or new environment of business.

P.4. Describe by giving examples, various market entry strategies along with their
advantages and disadvantages ?
Different type of strategies related to market entry which Amazon used for taking entry
in particular market which is mos profitable. Few strategies related to market entry are discussed
critically by making emphasis on disadvantage and advantage.
 Franchising and Licensing:
Organisation by using licensing and franchising agreement allow international business to use
intellectual property to conduct business operation with brand name “ AMAZON”
Advantage The success key of licensing and franchising are lower cost as well as capital
investment in business related activities and in infrastructure. And gaining access to large
audience with diverse requirements and needs. As these means provide benefit to Amazon to
take entry in new market. With cost effective methods and procedures company works and get
high return on investment which is made by them ( Keegan, 2017)

Disadvantage
High level of risk in these strategies by entering into new business environment of being
duplicated, losing control in operation and misuse intellectual property by international form for
their personal benefits.
 Exporting: It is strategy relates to market entry as organisation not to take entry in
market directly but tends to offer services and goods in different market place with
already exist business by selling finished product to company which is important party to
international border.
Advantage: The benefit to export items/ services at different new location for Amazon as
it leads to organisation productivity and high profit margin a it is consider most simplest method
to to take entry in global business environment. It tends to provide significant exposure to
customer base of international workplace (Kotabe, 2020)
Disadvantage: As cost is increased because higher tax amount is being paid to domestic
and international government for make it available in new area of market.

P.5. Explain an overview to key arguments in terms to global & local debate ?
International marketing tends to offer so many opportunities and also many benefits to
the organisation and business to grow their operations of business and audience base by reaching
out to maximum profitable customers. Companies tends to be exposed with diverse
infrastructure. Also on business practices which supports to take progress due to continuously
change & development.
Instead of productivity and business opportunities provided by global marketing as well
as global business possibilities many organisation tends to believe that domestic or local
marketing is best suited strategy for them as compare to international marketing. Amazon is
biggest example of it. Thus in the table comparison is made between local and global marketing
strategies in context to Amazon (Marinov, 2017)
Particulars Domestic marketing International marketing
Products and services In local marketing & market
the most suitable product and
services are offer by
AMAZON to their audience
by understanding exactly
regarding their desires and
preferences.
The market approaches and
the marketing plan is wider
in terms to global marketing.
Therefore goods and services
provided will be diverse
unfavourable to a larger
audience base than to
specific segment of the
country.
Cost as well as budget In local marketing less
costing is involved and
budget can be prepare and get
segregated as per needs of the
activities and promotional
plans also tends to be
developed.
In context to global
marketing, wider area and
business aspect is covered so
it involves large cost as well
as divide the budget into two
different regional offices
rather than the marketing
activities .
Promotional tactics At the time of conducting On contrary if Amazon is

marketing on local level or in
different locations of
domestic market, the
promotional tactics that are
use are easy as well as less
critical and also less complex
that are suitable to the
business model of
organisation.
moving to overseas to
conduct various business
related activities the
organisation will be leading
more complex & critical
promotional tactics that
involve diversification in
their business model.
P.6. Explain how various factors such as pricing, product, promotional & distribution
approach differ in international context?
The marketing mix of organisation differ in context to local and global market as these
are elaborate in detail in respect to organisation Amazon.
Product: the marketing mix initial element is product that provides brief description
regarding prominent items which brand is selling with highlighting over industry in which it
deals. As amazon is multinational company which concentrate on e commerce, artificial
intelligence, cloud computing, digital streaming, (Shilbury, 2020)
Price; Pricing is the second element of framework which focus on pricing strategy which
was adopted by company for making sales in competitive market and attracting people by giving
them suitable/ appropriate value for money. Amazon adopts competitive pricing strategy which
the organisation changes its pricing structure as per changes take place by rivals and competitive
environment.
Place: This factor are connected to distribution channel which an organisation use to
become accessible as well as reachable to their clients and the targeted audiences. the physical
channels that flourish in present business environment are virtual & physical. Amazon is the
firm that adopt online platforms to serve their audience as it's online delivery making services.
promotion: It is consider as last factor as it is a key to success. The promotional tactics
which is used by Amazon to create awareness in the market and to capture large market area by
attracting huge number of people are digital marketing, social media, traditional marketing. By
using digital marketing company capture large audience. On the other hand by adopting

traditional marketing company attract those people who tends to live their life by traditional
means.
P.7. Explain as well as analyse various approaches of international marketing which
company can adopt?
Marketing is wide concept that covers so many practices, tools and concepts. According
to expert it is business function which include certain tactics which is related to spreading
awareness among audience about offerings an services.
Now business have so many options that are productive and offers high and effective results to
business and also tends to brings better outcomes by way of responses from public. Thus there
are specific international marketing approaches which can adopted and implement by
organisation Amazon for placing itself in good position in new foreign market. Also tends to
inform their audience regarding their existence.
Digital marketing: The most common marketing channel for strategy is digital
marketing in recent business environment . Advanced technologies are evolving as well as
presented most convenient item to market segment i.e. digitalisation as well as digital products to
conduct various promotional activities and helps to reach maximum people with out any type of
breakage. By adopting digital marketing strategy for the purpose of promotion in foreighn
market it tends to high productivity and cost effective for business that leads to business survival
and expansion.
Omni Channel marketing: The updated & upgraded marketing tools which is used by
Amazon at the time of taking entry in new market place to conduct their operations of business is
Omni channel. Initially this strategy is rejected by company as well as markers but at present
each and every marketer in their plan use omni channels of marketing. It is most effective tool.

P.8. Make comparison between home as well as on international orientation and also way
to access competitors along with outlining their implication?
Each business is differ from each other . This shows that different orientation is use by
different company when they conduct their activities related to business. The orientation depends
on nature of business, operations, scope of services which are offered in context to sustainability
and adaptability of market place and their audience.
Ethnocentric: It describe the expansion of domestic market to global market. Hence
organisation engage in excess production of production services in home country market and
also expand by offering same product into international market place. The main objective of this
strategy is to fulfil the needs of local market and it is the responsibility of business to develop
smart strategies according to domestic customer base preferences.
Poly centric: This approach describes production of items and services with undertaking
requirements of audience base and market place. With the help of respective technique company
impose various marketing rights which business presents in foreighn market.
Geocentric: As per orientation practice all the world as well as different type of audience
all consider as well as treated with same market strategy which is adopted by marketer in
company. Most of the internationally operating businesses adopts International orientation for
the purpose of exposure. Thus Amazon is suggested to perform their business operations by
adopting convenient standardise marketing phenomena when they are interested to launch their
products in market at suitable International location.
CONCLUSION
After deep study and analysis it is to be conclude that international marketing help the
organisation to earn high revenues by creating awareness and capture large part of the audience
of different locations. While understanding concept of international marketing's various different
routes to take entry to foreighn borders are tends to be evaluated as well as conducting
comparison between both local and international marketing for discussing other important
concepts. After through evolution it is noticed that for the purpose of expansion international
marketing is potential source for business. On the other hand it also involves certain risk which
can become long term or short term barrier b/w growth & success pass of company. Thus it is
suggested that company must do analysis before it plans to move internationally.

REFERENCES
Books and Journals
Armstrong, G.M., Kotler, P., Harker, M. and Brennan, R., 2018. Marketing: an introduction.
Pearson UK.
Armstrong, G.M., Kotler, P., Harker, M. and Brennan, R., 2018. Marketing: an introduction.
Pearson UK.
Bertoli, G. and Valdani, E., 2018. Marketing internazionale. Milan: Egea.
Cateora, P.R., Meyer, R.B.M.F., Gilly, M.C. and Graham, J.L., 2020. International marketing.
McGraw-Hill Education.
Charter, M. and Polonsky, M.J. eds., 2017. Greener marketing: a global perspective on greening
marketing practice. Routledge.
Gbadamosi, A., 2019. Contemporary issues in marketing: Principles and practice. SAGE
Publications Limited.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Marinov, M.A. ed., 2017. Research handbook of marketing in emerging economies. Edward
Elgar Publishing.
Shilbury, D., Quick, S., Funk, D., Westerbeek, H. and Karg, A., 2020. Strategic sport marketing.
Routledge.