Fairfield School: International Marketing Report on BMW's Strategy

This report provides a comprehensive analysis of BMW's international marketing strategies, focusing on key concepts, market entry modes, and the application of the marketing mix. The report explores the advantages and disadvantages of globalization versus localization, examining pricing, product, promotion, and distribution approaches. It analyzes BMW's competitive advantages and recommends strategies for entering international markets, emphasizing the importance of understanding market conditions, customer bases, and cultural differences. The report also includes an overview of global marketing approaches, competitive analysis, and the benefits of international expansion for BMW, such as increased revenue, market share, and innovation. The report concludes with recommendations on how BMW should approach international markets, including the use of exporting, joint ventures, and acquisitions.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
LO1 AND LO2...........................................................................................................................3
P5. Overview of key arguments in global vs local marketing.............................................3
P6 & M4. Various marketing mix approaches in context to international market ................4
P7.Analysis of various marketing approaches........................................................................6
P8 &M5 Recommendations on why and how company should enter international market. .6
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
International marketing is designed to direct flow of goods of the company
internationally to earn profit after designing a plan to launch the product internationally by
deciding price, promotion strategy and place of promoting etc. To have a better idea about
international marketing this report takes BMW which deals in auto manufacturing and
provide financial services to the customers. The report talks about concepts of international
market, its marketing strategies and also marketing mix of local and international market. The
report at last introduces evaluation of different marketing approaches and shows how
international marketing can be beneficial for company in increasing profits and market share
of the company.
MAIN BODY
LO1 AND LO2
Enclosed in power point presentation.
P5. Overview of key arguments in global vs local marketing
Global marketing is when a company expands its operations and sales its products
globally (Martin, 2016). When a company start to have transactions across different borders
the responsibility of company increases to serve the best to its ultimate customers.
In global marketing the company depends upon macro factors as political conditions
of the country which includes new trade, export policies that can create an issue for the
company, economic factors like recession, depression prevailing in the country that can boost
or decline the sales of the company, then social factors that includes society and their culture
which is most important factor to take into consideration and also the company has to take
care of legal factors that includes laws and contracts and rules of the country and at last the

company has to see technological factors like new technology is accepted quickly by people
or people take time (Christofi, 2017).
After considering all these factors, the government intervention in global marketing is
quite high and company is liable to the government for any misdeed as its indirectly
representing the country in other countries
Global marketing also incurred high cost expenses and need more time and
innovation. The way of promoting product internationally also needs to be unique so that
customers can get attracted to the product.
On the other hand, local marketing involves market where people are selling same
product and consumers have similar purchasing power. Local market produce goods for the
same set of people unlike the global market which produce goods and services for diversify
people (Local marketing vs global marketing 2019). The study of environment is necessary in
local marketing as well but not on a huge scale like global marketing.
Local marketing is not complex in nature as it just involves exchange of home
currency and at last invoices of local marketing are relatively stable as it involves single
environment and get affected by local population.
Explain advantages and disadvantages of globalisation
Advantages Disadvantages
Globalization helps the firm in focusing
towards the progress across the world.
It stabilizes the global currencies for creating
the equal field of playing.
Globalization facilitates the enterprise in
operating at the global level and could attain
larger market share which in increases the
profitability of the company.
Cultural exchange is facilitated by the
globalization which is the best way in
making the strong relations with the people.
Globalization has led to the global lobbying
in developing nations by developed one's so
that overtaking cannot be possible. This
results in hindering the growth of major
development projects of India.
It leads to developing of the urbanisation
where the migration from the rural to the
urban are increasing as wide opportunities
are been gained in the urban areas. This
highly impacts the living standard and the
ecology of the country.
Explain advantages and disadvantages of localisation

Advantages Disadvantages
Localisation provides fame to the particular
place in respect of one of its products.
Labour efficiency increases when they
engage in the single type of the industry.
It improves the techniques and facilitates for
invention within the industry.
Localisation encourages the training and the
research development programs.
It motivates one sided building of the man
power in the industry.
The mobility of the labour get declined due
to the localisation.
It increases the fear among the workers
relating to the unemployment and the
economic difficulties.
Recommendation
From the above it is recommended that gloablisation and the localiastion comprise of
benefits and the limitations tghat teh industry faces by tooking this step. For creating teh well
known presence worldwide globalization must be adopted while in gaining the efficienct in a
specific sector and teh particular product the company should go for the localisation.
P6 & M4. Various marketing mix approaches in context to international market
Pick 2 points each to discuss 4 P’s
The company uses various approaches in international market to expand their market
as well as to increase the market share to of the product. The approaches are –
Pricing approach – Every product is influenced by its price. There are few factors
that helps a company to decide the price of its product like the physical location, or the price
that international consumer will be willing to pay for the product or maybe own business
objectives (Moon, 2017). The pricing approach BMW uses is standardization as the price of
all the BMW product s remains same and it sales its product in premium range only to
premium customer and is affected by its own objectives to maintain its brand value. It differs
from other companies as BMW is a price maker and the company do not compromise with
price and quality. BMW uses two types of teh pricing startegy taht is the penetration pricing

and the competitive pricing. In penetration pricing strategy, it sets lower price for its product
for gaining larger customers. In competitive priocing startegy it set up its prices as per its
competitors price such as Audi, Mercedes etc.
Product approach – To launch the product the company depends upon product
approach which are divided into strategies which are product and communication extension
which is the strategy for new entrants, product extension communication adaption in which
company takes care of cultural perspective and retains economies of scale and the other is
product invention in which company produce products of global scope and have opportunities
around the world which is used by BMW. The product approach relates with developing such
vbaluable product that meets the needs and the expectation of the customers. As BMW
contains the brand value, the selling of its products wholly depends upon its unique quality.
Promotion approach – To sell any product internationally the company needs to use
promotional approach to increase the sale of the company. The company can use personal
selling, advertising, sales promotion, publicity etc. to make customers aware of the product
(Folinas, 2017). The company uses push and pull strategy where in push strategy it push the
retailers and wholesalers to sale the product whereas in pull strategy the focus is on
customers and they pull the product. BMW uses pull strategy which attracts the customers by
its luxurious products. Promotion approach includes communication with the customers on a
large platform through the use of effective marketing strategies. The benefits and the
information taht describes the product are communicated to the target audience under the
promotion approach.
Distribution approach – To distribute the product globally the strategy adopted by
company are International departments which means that the product of the company is
directly sale in the market and company has all control on distribution, the other can be
distributors who acts as an third party and facilitate the selling of product in foreign markets.
BMW uses selective distribution strategy in which it selects the apt distributors who can
maintain the brand image company while selling the product (Yan, 2016 ). Decisions
regarding the distribution approach are taken in line with the overall strategic mission and teh
vision of teh company. The distribution network of the BMW has been spreaded across the
whole world.

P7.Analysis of various marketing approaches
To enter in the market a company needs to study few factors and needs to follow few
approaches which are –
Mode of entry – Before entering in the market the company needs to know the mode
of entering in the financial market. It can be through direct exporting or licensing or
franchising whichever suites the best to the company. Before entering the company must
assess and evaluate opportunities, customer base, cultural difference etc. BMW uses
licensing, franchising, joint venture as well as acquisition to enter in the international market.
Product approach – After selecting the mode of entry the country selects the product
its launching as it can be a new product which has been developed from the scratch or it can
be a established product that now company is planning to launch internationally to increase
the product expansion. BMW mostly expand its already existing product and launches it
globally.
Pricing approach – When the product is decided, it’s really important to select
correct price strategy. A company can adopt economical pricing, price skimming, penetration
pricing etc. according to the market conditions (Sinkovics, 2015). BMW mostly focuses on
high pricing and targets premium class audience who can afford their product.
Promotional strategy – After deciding the price and product the company then
promotes its products through advertisements, publicities, personal selling etc to increase the
customer base and profits of the company. BMW promotions are mostly based on superior
technological advancements and its services provided to premium people.
Competitive analysis – The competitive advantage of BMW is that that these car
manufacturers get supported by number of loans which lessen up the burden of the consumer
and purchaser can purchase the car easily (Yan, 2016). Also the other advantage associated
with it is its brand value as it is made for rich class people and it shows that individual
belongs to higher social class.
P8 &M5 Recommendations on why and how company should enter international market
A company should enter in international marketing to have competitive advantage
over other companies to give a threat to its competitor selling the same product in the market.

BMW should trade internationally to increase the sales and profits of the company as
expanding globally will improve company’s overall revenue.
The other most important point is when business deals in global market it is less likely
to get fluctuated from recession, depression and provides overall stability in the performance.
It increases the innovation and helps the company to develop its product more efficiently and
also improves the management of the company as company deals with new customers
everyday it increases the learning and creativity of the company.
The other most important thing it does is to help to achieve economies of scale as
exporting expands the business of BMW and products get widely accepted by consumers
which allow a company to have another advantage (Armstrong and et.al., 2015).
Also BMW is now offering financial services therefore to have innovation in the
services can attract more customer base and can help it to have competitive advantage among
other companies.
Among all the ways a company should enter in to international marketing either through
exporting which gives advantage of economies of scale or through joint venture which
reduces the risk and shares losses or through acquisition of the local company that can help
the company to know local requirements of people residing there and to reach out to
customers.
Analysis of global marketing approaches in which P&G can adopt:
Knowing the market- P&G by studying the deeoer insights in realtion to its
market can expand its product to teh gloabl level. Each and every region of
the country contains different norms in terms of the marketing strategy so
it helps teh firm in undersrtanding the market responses efficiently.
Building a marketing plan- For attaining the growing success in the gloabl
environment, P&G ust develop a marketing plan that enables the firm in
outlining various aspects such as determining the goals, expanding areas,
measuring success etc.

Comparisons between Home and International orientation
Home International
Home orientation refers to selling the
products and services within the country or
within the local market.
In this no language barriers are present and
the data is been interpreted or obtained based
on the local trends of the marketing.
International orientation is promoting the
sales of the product in several countries at a
global level to the consumers.
Different cultures and the languages has to be
adopted in the international orientation in
order to cater the desires and the wants of the
customers in various countries.

CONCLUSION
Assignment concludes the scope and concept of international marketing which is very
important now a day to increase profit of the company. The study depicted its importance and
need in achieving growth and expansion in the market. Moreover, the project report further
talked about marketing strategies of company that it follows in order to gain competitive
advantage and higher customer base. It also mentioned various approaches a company adopts
while entering in the market and moreover it described the difference between global market
and local market and their implications.
REFERENCES
Books and journal
Armstrong, G., and et.al., 2015. Marketing: an introduction.
Moon, B.J. and Oh, H.M., 2017. Country of origin effects in international marketing
channels: how overseas distributors account for the origins of products and
brands. International Marketing Review. 34(2). pp.224-238.
Martin, S.L. and Javalgi, R.R.G., 2016. Entrepreneurial orientation, marketing
capabilities and performance: the moderating role of competitive intensity on Latin American
International new ventures. Journal of Business Research. 69(6). pp.2040-2051.
Sinkovics, R.R., 2015. International Marketing Culture. Wiley Encyclopedia of
Management. pp.1-2.

Eisend, M., Evanschitzky, H. and Calantone, R.J., 2016. The relative advantage of
marketing over technological capabilities in influencing new product performance: the
moderating role of country institutions. Journal of International Marketing. 24(1). pp.41-56.
Brouthers, K.D., Nakos, G. and Dimitratos, P., 2015. SME entrepreneurial
orientation, international performance, and the moderating role of strategic
alliances. Entrepreneurship Theory and Practice. 39(5). pp.1161-1187.
Kasemsap, K., 2016. Role of social media in brand promotion: An international
marketing perspective. In Managing public relations and brand image through social
media (pp. 62-88). IGI Global.
Bajac, H., Palacios, M. and Minton, E.A., 2018. Consumer-brand congruence and
conspicuousness: an international comparison. International Marketing Review. 35(3).
pp.498-517.
Folinas, D. and Fotiadis, T., 2017. Marketing and Supply Chain Management: A
Systemic Approach. Routledge.
Christofi, M., Leonidou, E. and Vrontis, D., 2017. Marketing research on mergers
and acquisitions: a systematic review and future directions. International Marketing
Review. 34(5).pp.629-651.
Keillor, B., 2015. Toward a Theory of International Marketing. In Proceedings of the
1993 Academy of Marketing Science (AMS) Annual Conference (pp. 181-185). Springer,
Cham.
Funk, D., Alexandris, K. and McDonald, H., 2016. Sport consumer behaviour:
Marketing strategies. Routledge.
Onkvisit, S. and Shaw, J.J., 2015. A cross-national comparison of the applicability of
standardized international advertising. In Marketing Horizons: A 1980's Perspective (pp. 93-
98). Springer, Cham.
Yan, A. and Luo, Y., 2016. International Joint Ventures: Theory and Practice:
Theory and Practice. Routledge.
Online
Local marketing vs global marketing 2019.[Online]. Available through:
https://specialties.bayt.com/en/specialties/q/370896/what-re-the-key-differences-between-
local-and-international-marketing/
Madi, 2015. Why to enter in international market [Online]. Avaliable through : <
https://madi.uc3m.es/en/international-research-en/international-business-en-2-en/why-
internationalize-reasons-international-marketplace/>