International Marketing Strategies for Brightstar Financial: A Report

Desklib provides past papers and solved assignments for students. This report analyzes Brightstar Financial's international marketing strategies.

INTERNATIONAL MARKETING
1

Contents
LIST OF FIGURES.............................................................................................................................4
INTRODUCTION............................................................................................................................. 5
LO1................................................................................................................................................. 6
P1............................................................................................................................................... 6
SCOPE OF INTERNATIONAL MARKETING...............................................................................6
KEY CONCEPTS OF INTERNATIONAL MARKETING..................................................................6
P2............................................................................................................................................... 8
RATIONALE.............................................................................................................................8
ROUTES TO INTERNATIONAL MARKET...................................................................................8
M1............................................................................................................................................10
OPPORTUNITIES...................................................................................................................10
CHALLENGES........................................................................................................................ 10
LO2............................................................................................................................................... 12
P3............................................................................................................................................. 12
CRITERIA FOR EVALUATION.................................................................................................12
P4............................................................................................................................................. 14
MARKET ENTRY STRATEGIES................................................................................................14
M2............................................................................................................................................16
CRITERIA FOR EVALUATION.................................................................................................16
RECOMMENDATION............................................................................................................ 17
LO3............................................................................................................................................... 18
2

P5 AND M3.............................................................................................................................. 18
GLOBAL VS LOCAL MARKETS................................................................................................18
P6 AND M4.............................................................................................................................. 20
MARKETING MIX..................................................................................................................20
LO4............................................................................................................................................... 23
P7............................................................................................................................................. 23
INTERNATIONAL MARKETING APPROACHES........................................................................23
P8............................................................................................................................................. 24
ASSESSMENT OF COMPETITION...........................................................................................24
M5............................................................................................................................................26
CONCLUSION............................................................................................................................... 27
REFERENCES.................................................................................................................................28
3

LIST OF FIGURES
Figure 1: Brightstar Logo................................................................................................................4
Figure 2: Marketing Mix...............................................................................................................20
Figure 3: Porter's Five Forces.......................................................................................................24
4

INTRODUCTION
International marketing is the concept which deals with the application of principles of
marketing in more than one country. The process of international marketing allows an
organization or an individual to promote their product or services in different countries across
the globe (Czinkota and Ronkainen, 2013). With the rise in globalization, international
marketing has assisted various companies to expand their reach to the customers in many
countries and provide them with the goods and services.
Brightstar Financial is a UK based company that specializes in providing financial solutions
relating to mortgage, commercial finance, developing finance and short term lending. The firm
has 3 offices in the UK and is headquartered in Essex. Being established in the year 2011, the
firm has been growing rapidly and providing financial solutions to its consumers (Brightstar,
2019).
Figure 1: Brightstar Logo
[Source: Brightstar, 2019]
In this report, the importance of marketing in the international context is being studied through
understanding the concept of international marketing and the opportunities and challenges
that it holds. Through this report, criteria and selection process for entering into an
international market is examined through understanding the various market entry strategies.
The application of marketing mix on the organization and various international marketing
approaches are also being studied in the report through which an organization can work
internationally.
5

LO1.
P1.
International marketing is the process through which the organizations are able to provide their
products and services outside the boundaries of their domestic countries.
SCOPE OF INTERNATIONAL MARKETING
The concept of international marketing holds a huge scope in today's ear of business, some of
which can be stated as follows:
 Opening of Opportunities
International marketing has opened up the scope of opportunities which can be grabbed
by the businesses that want to expand in the multinational market (Gilligan and Hird,
2012). Through providing the products and services into a new market and developing a
large customer base, opportunities can be taken by the firms.
 Reduction in Risk
International marketing has also reduced the risks held by the organizations by
providing them a measure through which they can reach out to new markets and
customers and satisfy their needs through which profit can also be generated.
 Development of Harmony Among Nations
International marketing has also developed harmony among the nations through
providing the organizations of different countries the opportunity to enter into their
markets (Majaro, 2013). Through the concept of international marketing, the economies
of the nations have also been improved and benefited.
KEY CONCEPTS OF INTERNATIONAL MARKETING
 Globalization
Globalization is a concept of international marketing because of which the term has
evolved. Globalization refers to the process of expanding the business in more than one
country (Beck, 2018). Due to the rise in globalization, the concept and need for
international marketing have evolved.
6

 Domestic Marketing
Domestic marketing is the process through which the domestic business attracts the
customers for taking their products and services. It is essential for an organization to
understand the domestic marketing strategies that have been adopted by the country in
which it is expanding (Dinnie, 2015).
 Global Marketing
Global marketing involves the strategies adopted by an organization for attracting
customers to purchasing their products and services. The strategies of global marketing
assist the organization in developing a customer base in more than one country.
 International trade
International trade involves the requirement of import and export of the products
manufactured by the organization (Cavusgil et al., 2014). It involves the business
activities performed during the incoming and outgoing of the products or services.
7

P2.
RATIONALE
Brightstar Financial is an organization whi9ch is providing assistance to brokers and is a
specialist in providing various mortgages and lending to their clients. Providing the best of the
services, the firm can utilize the concept of international marketing so that they can provide
their high-quality services to the customers worldwide (Gilligan and Hird, 2012). The reason for
applying the concept of international marketing on Brightstar Financial is to understand the
various routes through which an organization enters into an international market. The
organization can also use international marketing to explore the various opportunities held by
the firm in the global market.
ROUTES TO INTERNATIONAL MARKET
There are several routes which can be adapted by Brightstar Financial can enter into the
international market for the expansion of its business, some of which are as follows:
 Franchising
Through the franchising process, Brightstar Financial can enter into the international
market by providing an existing company in the country with the right to use the
trademark of Brightstar Financial and develop business under its name (Thompson et al.,
2015). Through this process, Brightstar Financial can establish its business in another
country.
 Joint Ventures
Joint ventures are one of the most commonly used market entry strategies through
which Brightstar Financial can jointly enter into the market with an organization with a
common purpose (Shenkar et al., 2014). Joint ventures are used by the organizations so
that a new organization can be created with the expertise of the two existing
organizations.
 Licensing
8

Licensing refers to the process of transferring the right of the organization to sell specific
services to another organization. Through this process, Brightstar Financial can grant
another organization in the host country the license to provide their financial services to
the customers.
 Business Acquisition
Business acquisition is a technique through which Brightstar Financial can acquire a
similar business operating organization in the host country and then provide its financial
services (Gillespie and Riddle, 2015). This would be helpful when the organization has a
substantial market share in the host country.
9

M1.
Adoption of international marketing might result in the development of various opportunities
as well as certain challenges for Brightstar Financial, which can be stated as follow:
OPPORTUNITIES
 Higher Consumer Base
With the help of international marketing, Brightstar Financial can expand its reach to
customers by establishing the business into various countries and providing them with
financial services (Mathews et al., 2016). International marketing would also develop a
higher customer base for Brightstar Financial.
 Developing Connections in Other Countries
International marketing would also assist Brightstar Financial in developing connections
with other countries through which they could be benefited. Maintaining healthy
relations with the economists and businesses of a different country would anytime help
in creating the brand value in the host country’s market (Terpstra et al., 2012).
 Increases Brand Worth
Entering into a new market would create a higher brand value for Brightstar Financial.
Through providing their high-quality financial services to the customers of different
countries, Brightstar Financial can establish itself as an efficient brand in the new
market.
CHALLENGES
 Diversified Culture
Entering into a country with a varied and diversified culture might create a challenge for
Brightstar Financial as it would be required to develop their financial strategies
according to the adaptability of values and beliefs of the home country.
 Economic Factors
Economic factors of the host country also hold a major challenge for Brightstar Financial
((Plassmann et al., 2015). If the economy of the host country is struggling economically
10

and is not able to fulfill the requirements of the social community, it would be leading to
the decline in the standard of living of the people in the country. This would negatively
impact the profitability of Brightstar Financial.
 Business Environment
The business environment of the host country is required to be providing a supportive
environment to Brightstar Financial so that it can properly function in the business
environment or else could create a major challenge for the firm (Shenkar et al., 2014).
Also, if the level of competition in the business environment is rigid, it would be a
challenge for Brightstar Financial.
11

LO2.
P3.
CRITERIA FOR EVALUATION
For determination of the market for international marketing, organizations are required to
carry out the evaluation on the basis of several criteria so that they select an efficient market. It
is significant for the organization to study the environment of the home country so that it can
understand the level of opportunities and threats held by the business environment of the
country (Watson et al., 2018). For the selection of an appropriate international marketing
environment there are various criteria’s, some of which are as follows:
 Competition Analysis
Before entering into a new market, the scenario of the current competition in the
industry has to be identified. Determination of the level of competition is significant so
that the firm can determine competitive strategies. Also, the unhealthy competitive
market might affect the profitability of the firm.
 Market Analysis
Analyzing the market is also very essential before a firm enters an international market
so that the firm is well equipped with the knowledge of the available resources and
distribution channels (Thompson et al., 2015). It would also help the organization in
understanding the growth patterns followed in the market that could affect its business.
 Environmental Analysis
Environmental analysis stands of huge importance while selecting an international
market. Determining the key elements of the market and their nature is essential for a
firm so that it can examine the growth opportunities and the scope it holds in the given
business environment (Beck, 2018).
 Demand Analysis
It is also required by a firm to determine the demand for the product or services
provided. If the business market of the host country is less adaptable to the
12