International Marketing Strategies for ClickTravel Ltd Report

This report provides a comprehensive analysis of international marketing strategies, focusing on ClickTravel Ltd. It begins by defining the scope and key concepts of international marketing, including domestic, export, multinational, and global marketing. The rationale for international expansion is explored, highlighting opportunities and challenges such as increased income levels, demand for innovation, global competition, and high setup costs. The report evaluates criteria for selecting international markets, including political risks, market demand, and trade barriers, and discusses various market entry strategies like exporting, franchising, joint ventures, and direct investment, outlining their advantages and disadvantages. It addresses the global versus local debate, emphasizing the importance of adapting the marketing mix to different international contexts. Finally, the report examines various international marketing approaches, compares home and international orientation, and provides recommendations for ClickTravel Ltd to operate effectively in an international context. Desklib offers this and many other solved assignments to help students excel in their studies.

INTERNATIONAL MARKETING

Table of Contents
INTRODUCTION..........................................................................................................................3
COMPANY OVERVIEW................................................................................................................4
TASK 1.........................................................................................................................................5
P1 ANALYSE THE SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING..................5
P2 EXPLAIN THE RATIONALE FOR IT TO WANT TO MARKET INTERNATIONALLY AND
DESCRIBE THE VARIOUS ROUTES TO MARKET THE ORGANISATION CAN ADOPT.................7
M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO YOUR CHOSEN CLIENT ORGANISATION...........................8
TASK 2.........................................................................................................................................9
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE WHEN CONSIDERING
WHICH INTERNATIONAL MARKET TO ENTER.........................................................................9
P4 EXPLAIN, USING EXAMPLES, THE DIFFERENT MARKET ENTRY STRATEGIES, INCLUDING
THE ADVANTAGES AND DISADVANTAGES OF EACH............................................................11
M2 APPLY THE MARKET EVALUATION CRITERIA AND ENTRY STRATEGIES AND MAKE
RECOMMENDATIONS...........................................................................................................13
TASK 3.......................................................................................................................................14
P5 PRESENT AN OVERVIEW OF THE KEY ARGUMENTS IN THE GLOBAL VERSUS LOCAL
DEBATE.................................................................................................................................14
M3 EVALUATE THE CONTEXT AND CIRCUMSTANCES IN WHICH YOUR CLIENT
ORGANIZATION SHOULD ADOPT A GLOBAL OR LOCAL APPROACH, HIGHLIGHTING THE
IMPLICATIONS OF DOING SO...............................................................................................16
P6 INVESTIGATE HOW THE PRODUCT, PRICE, PRICING AND PROMOTIONAL DISTRIBUTION
APPROACH DIFFERS IN A VARIETY OF INTERNATIONAL CONTEXTS....................................17
M4 DETERMINE AND ARTICULATE IN DETAIL HOW TO ADAPT THE MARKETING MIX OF
YOUR CLIENT ORGANIZATION IN DIFFERENT INTERNATIONAL MARKETS..........................18
TASK 4.......................................................................................................................................19
1

P7 EXPLAIN AND ANALYSE THE VARIOUS INTERNATIONAL MARKETING APPROACHES
YOUR CLIENT ORGANISATION CAN ADOPT.........................................................................19
P8 COMPARE HOME AND INTERNATIONAL ORIENTATION AND WAYS TO ASSESS
COMPETITORS, OUTLINING THE IMPLICATIONS OF EACH APPROACH...............................20
M5 EVALUATE VARIOUS MARKETING APPROACHES AND COMPETITOR ANALYSIS IN
RELATION TO AN ORGANIZATION AND MAKE RECOMMENDATIONS ON HOW THEY
SHOULD OPERATE IN AN INTERNATIONAL CONTEXT..........................................................22
CONCLUSION............................................................................................................................23
REFERENCES.............................................................................................................................24
2

INTRODUCTION
International marketing can be referred as the application of marketing principles by
companies or industry in more than one country. Due to globalization, many companies
carry out their operations in almost any country around the world. It can be said in simple
words that the trading of goods and services among different countries around the world is
defined as international marketing (Terpstra, et al. 2012). It includes all the procedure that
is planning, executing rates, promotion as well as the distribution of products as well as
services around the world.
In the present scenario, no company is restricted to perform their trading activities to their
national borders. Majority of the companies are expanding through their well-defined
competitive marketing strategies while considering the demands, choices, preferences and
tastes of customers (Berthon, et al. 2012). This assignment comprises of the study of Click
Travel Ltd and focuses on the understanding the contribution of marketing to the business
strategies at international level.it includes the scope can key concepts of the international
marketing. It describes the importance of selecting the entry strategies in international
markets along with the key success factors. It also includes the elements of a marketing plan
that can be adapted to international markets. It also highlights the different approaches
adopted by the organization in international marketing.
3

COMPANY OVERVIEW
ClickTravel Ltd is a travel management company that was established in the years 2008. The
aim of the company is to reduce the cost and complexity of booking a holiday for their
clients. The clients of the company include public, private and charity organizations across
the wide spectrum of industries. It manages business travel by combining the award-
winning team members with the innovative and latest technology (ClickTravel Ltd, 2018).
The earnings of the company above £35,000 are about 23 per cent. The staffs of the
company consist of 205 members. The aim of the company is to expand its operations
across the world.
4

TASK 1
P1 ANALYSE THE SCOPE AND KEY CONCEPTS OF INTERNATIONAL
MARKETING
DEFINITION
International marketing is defined as the application of marketing principles in order to
satisfy the different needs and wants of various people who reside across the national
border (Armstrong, et al. 2015). The reason for the organizations such as ClickTravel being
global is to increase economies of scale, the elongated life of the products, huge market
share, untapped international market, and high growth and profit opportunities in the
international market.
CONCEPT OF INTERNATIONAL MARKETING
Domestic Marketing: Domestic marketing is referred to that marketing where the target
people are excluded from the home-country market. It resembles the global marketing
scenario in the technical terms (Akaka, et al. 2013). A company can be said domestic when
the products and technology and new market diversification is done within the country.
Export Marketing: the saturation of the domestic market or requests from customers from
other countries results in export marketing without undertaking any additional marketing
effort (Terpstra, et al. 2012). At this stage, the aim of the company is to expand its market
size by exporting the goods from one country to other countries. The outcome of this is that
in the organizational structures of domestic marketing firm, international sales force
department is present
International Marketing: in the international marketing, the focus of the companies is to
change the exporting to undertake marketing efforts in the foreign country (Crooks, et al.
2011). The company undertakes the marketing operations by establishing subsidiaries in
foreign countries.
Multinational marketing: multinational marketing approaches are applied by the company
in international marketing as it is realised that domestic marketing mix can be extended in
the different business environment in other countries. The subsidiaries in other countries
5

work as independent units using different marketing mix for different market environments
across the countries.
Global marketing: It is the tactic used by the company in order to increase the global reach
of the brands from domestic scale to international level (Hudson and Thal, 2013). Global
marketing is attracting a large number of international customers for profits and global
recognition.
SCOPE OF INTERNATIONAL MARKETING
The scopes of international marketing are given below:
Export: export is shipping the good and services for the trading purpose from one country to
another by abiding by the rules and regulation of both home and a foreign country.
Import: importing is known as purchasing the products and services from the external
sources that are foreign companies around the world (Haggerty, et al. 2012).
Re-export: re-exporting is referred to the exporting of foreign goods and services that are
imported previously from various locations such as free circulation areas, industrial free
zones and so on to rest of the world.
Formalities and Procedures of Marketing: the framing of different laws and policies by
different countries result in more complex and time-consuming process which is to be well
aware and abided by both importers and exporters (Haynes, 2010).
Trade block and their impacts: measures are to be taken to minimise the impacts of trade
blocks such as EU, ASEAN, CACM, AFTA and LAFTA while performing the marketing activities
by the active participation of several countries (Park and Oh, 2012).
6

P2 EXPLAIN THE RATIONALE FOR IT TO WANT TO MARKET
INTERNATIONALLY AND DESCRIBE THE VARIOUS ROUTES TO MARKET THE
ORGANISATION CAN ADOPT
There are various reasons for the company to enter international markets. Most of the
companies follow standard market entry and development strategy. The aim of the
company ClickTravel is to enter the international market because of the following rationale:
Opportunistic Development: the company such as ClickTravel aims to get opportunistic
development by using unsolicited approaches). It is observed that at least 25 per cent of the
UK companies initiate the internationalisation process through unsolicited approach
(Majaro, 2013).
Following Customers Abroad: in order to get the potential growth for the business, the
companies such as ClickTravel Ltd turn to the global market to cater to large number of
customers across the globe (Grissemann and Stokburger-Sauer, 2012). The aim of the
company is to expand by following the customers in abroad including the feature of B2B
supply.
Following Competition Abroad: when the company wants to expand or grow across the
world the company aims to follow the competition overseas to cater to the new markets by
considering the needs and expectations of the customers (Majaro, 2013).
Geographic Market Development: It is essential for the companies to consider the
geographic expansion to succeed in global marketing companies.
7

M1 EVALUATE THE OPPORTUNITIES AND CHALLENGES THAT MARKETING
INTERNATIONALLY PRESENTS TO YOUR CHOSEN CLIENT ORGANISATION
Various opportunities and challenges faced by the company such as ClickTravel Ltd while
marketing their products and services at the international level are:
OPPORTUNITIES
 One of the most important opportunities is the increase in the income levels of the
individual in developing countries which gives the opportunity to be globalised.
 There is the consistent demand for innovation in the products and services offered
by the company such as ClickTravel Ltd in the travelling industry (Mauri and Minazzi,
2013).
 Another opportunity is catering a large number of customers by serving quality
products and services to achieve customer satisfaction and global recognition.
 It will be beneficial for the company to introduce its products and services to new
prospects resulting in enhancement of profits and revenues for the company (Hsu,
2012).
CHALLENGES
 One of the major challenges is the development of intensive global competition in
the tourism industry.
 Another major challenge is the requirements of high investment and setup cost in
order to open its branch in a foreign country (Christou, 2015).
 The company might face certain issues such as political or economic and social issue
while marketing its services and products at international level.
 Lack of availability of resources can also be the reason for facing the challenges in
travelling business.
8

TASK 2
P3 EVALUATE THE KEY CRITERIA AND SELECTION PROCESS TO USE WHEN
CONSIDERING WHICH INTERNATIONAL MARKET TO ENTER
SELECTION CRITERIA TO BE CONSIDERED TO ENTER INTERNATIONAL MARKET
It is essential for the company such as ClickTravel Ltd to select the right criteria in order to
enter the international market:
Political risks: It is essential for the company such as ClickTravel Ltd to consider the level of
political stability in the foreign country in order to enter in the international market
(Bengtsson, et al. 2010).
Market demand: the company such as ClickTravel Ltd needs to consider the size of the
market in the foreign country along with the growth rate in the respective industry that is
travelling industry.
Trade barriers: the company needs to get notified of the tariffs and non-tariffs barrier such
as regulations, import licenses, quotas and so on. Regulation for packaging and labelling and
necessary adaptation is to be considered while entering the international market (De Mooij,
2013).
IMS- INTERNATIONAL MARKETING SELECTION
9

Fig 1 international market selection process
[Source: De Mooij, 2013]
There are five stage processes to identify the best opportunities available in the
international markets in the selection process of international marketing. The five stages in
the selection process include county identification that is segmentation, target, positioning,
preliminary screening that is a collection of relevant data on each country, in-depth
screening that is an analysis of relevant data, final screening that is filtering less promising
countries and direct experience by selecting most promising country.
10

P4 EXPLAIN, USING EXAMPLES, THE DIFFERENT MARKET ENTRY
STRATEGIES, INCLUDING THE ADVANTAGES AND DISADVANTAGES OF
EACH
Different type of marketing strategies can be adopted by the company such as ClickTravel
Ltd that can be used by them to enter international market along with its advantages and
disadvantages are as follows:
EXPORTING: when the products are produced by host countries and is shipped to foreign
countries for the purpose of sales is called as exporting (De Mooij, 2010).
Advantages: the advantage is that it requires low investment and fewer risks.
Disadvantages: the disadvantage is that the company has no control over the foreign
market and has limited information about the external environment.
FRANCHISING: in this method a semi-independent company pays the fees or royalty in
order to use the trademark and products and services of the parent company (De Mooij,
2010).
Advantages: major advantages are a requirement of less investment, fewer risk, and
knowledge regarding the foreign culture and market to the franchise and so on.
Disadvantages: one of the major disadvantages is that maintaining lack of trade secrets;
also other disadvantages are difficulty in control, reduced market opportunities for both and
so on.
TURNKEY PROJECTS: this is another special mode to enter the international market. A
contract formed is between the company and contractor in order to design and construct
the facilities and train the employees for exporting the process and technology to another
country (Sigala, et al. 2012).
Advantages: the major advantage is that increases the possibilities for the company such as
ClickTravel Ltd for establishing a business unit to earn profit due to existences of limited
direct investment opportunities and lack of expertise in the particular area.
11