International Marketing Strategies for Business Expansion

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INTERNATIONAL MARKETING

Table of Contents
INTRODUCTION.....................................................................................................................................2
LO1........................................................................................................................................................3
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING.....................................................3
P2 RATIONALE FOR INTERNATIONAL MARKETING AND VARIOUS ROUTES TO ENTER IN THE
INTERNATIONAL MARKET.................................................................................................................5
M1 OPPORTUNITIES AND CHALLENGES FOR ENTERING IN THE INTERNATIONAL MARKET..............7
LO2........................................................................................................................................................9
P3 CRITERIA AND SELECTION PROCESS FOR CHOOSING THE CORRECT INTERNATIONAL MARKET...9
P4 DIFFERENT MARKET ENTERING STRATEGIES INCLUDING ADVANTAGES AND DISADVANTAGES10
M2 MARKET EVALUATION CRITERIA AND STRATEGIES FOR ENTERING IN MARKET.......................11
LO3......................................................................................................................................................13
P5 OVERVIEW OF THE KEY ARGUMENTS IN THE GLOBAL AND LOCAL MARKET..............................13
P6 HOW THE PRODUCT, PRICE, PLACE, AND PROMOTION DIFFER IN INTERNATIONAL MARKET. . .14
M3 CIRCUMSTANCES IN WHICH THE ORGANISATION SHOULD ADOPT A GLOBAL OR LOCAL
APPROACH......................................................................................................................................15
M4 HOW TO ADAPT THE MARKETING MIX IN DIFFERENT INTERNATIONAL MARKET.....................16
LO4......................................................................................................................................................17
P7 VARIOUS INTERNATIONAL MARKETING APPROACHES...............................................................17
P8 HOME AND INTERNATIONAL ORIENTATION AND THE WAYS TO ASSESS COMPETITORS...........18
M5 VARIOUS MARKETING APPROACHES AND COMPETITOR ANALYSIS..........................................19
CONCLUSION.......................................................................................................................................20
REFERENCES........................................................................................................................................21
1

INTRODUCTION
Marketing is the process of selling products and enhancing people’s interest in the product
and services. Marketing can be achieved by understanding the customer's interest and
analysis of the market. Marketing focuses on all business factors including product
development, advertising, and product distribution. Every factor has equal importance in
marketing. International marketing refers to the process of expansion of the business in
other countries by import and of products, goods and services in a different country.
Increasing demand in customer’s choice, taste and preferences encourage the companies to
expand the business globally. International marketing helps the company to fulfil the
demands of the customer by importing and exporting goods on national borders. In this
article, the learners come to know about the importance of the international market, how
international market contributes to the expansion of the local market, how to enter in the
market, and what strategies are needed to enter in the international market.
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LO1
International marketing refers to import and export of goods and services globally for the
expansion of the business. International marketing is also known as global marketing and
has huge scope for growth of business but need proper planning to enter and survive in the
international market (Armstrong et al., 2015).
P1 SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING
SCOPE
Royal Dutch Shell Plc. is a public limited company introduced by Marcus Samuel. Shell is an
international Energy company responsible for providing energy solutions to other
companies and countries and has lots of scope in the expansion of business globally (Hansen
et al., 2016).
Import- Importing refers to buying of products and goods from other countries for re-selling
or for manufacturing of new products. Shell also needs to enhance the importing of raw
material from different countries as importing has a large scope for entering the
international market. Importing also enhances the growth of the business (Hansen et al.,
2016).
Export-Exporting is selling of the finalised product in the international market for the
expansion of the business as well as for earning the profit. Shell needs to expand the
business globally by exporting the finalised product to the international market (Hansen et
al., 2016).
The contractual agreement-Contractual agreement is making an agreement between
companies. The agreement may be the licencing, technical assistance or co-production. The
contractual agreement became necessary when the business enters the international
market. Royal Dutch Shell needs to do such contract agreements with different international
companies for expanding the business (Hansen et al., 2016).
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Joint venturing-Joint venturing is merging of two brands for a particular time period for
establishing a new firm. The new firm then works individually and achieve goals that are not
related to the parent companies. Shell Company needs to joint with some international
company for expanding the business in other fields then oil and energy distribution (Hansen
et al., 2016).
Contract manufacturing- In contract manufacturing one company assembles the product
and the other company is responsible for product marketing. Shell needs to do contract
marketing with some other international company that helps in the expansion of the
business internationally and also cuts the cost of price and risk and has an easy exit at the
same time (Hansen et al., 2016).
Fully owned manufacturing-In this method the company has full control over the
manufacturing and marketing of the product. The company has all over control on the cost
and quality of the product for a long term interest. Royal Dutch Shell needs to follow the
strategy for long term manufacturing (Hansen et al., 2016).
Strategic alliances-Strategic alliances are the strategy used for gaining a competitive
advantage over other companies. It is somewhat difficult to achieve the goals alone so the
company needs to tie up with the other companies to take advantages over other
competitors in the same industry. Shell needs to tie with the international companies for
gaining profit over other competitors (Hansen et al., 2016).cc
KEY CONCEPT
The main purpose of international marketing is to educating the companies about the
difference in the national and international marketing environment and the influence of
strategies in the foreign market. The concept of international marketing helps the company
in taking the correct decision for marketing that is important for taking huge advantages
from the internal market (Dinnie, 2015).
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P2 RATIONALE FOR INTERNATIONAL MARKETING AND VARIOUS ROUTES
TO ENTER IN THE INTERNATIONAL MARKET
RATIONALE
International marketing provides business opportunities for all type of companies.
According to research, the company in the international market has more chances to grow,
less failure and more competition to develop the business (Rishi and Bandyopadhyay, 2017).
Increase sales and profit-Expansion of business globally increase sales and profit. Royal
Dutch shell needs to enter in the international market for increasing the sales and earning
more profit and for that the company needs to produce unique products with the help of
new technology (Rishi and Bandyopadhyay, 2017).
Short and long term security- For the export of the products the company emphasis on the
security of the product by improving the product quality, production capacity, more
employment and financial strategies. Shell also needs to focus on the factors for making the
company secure for long term (Rishi and Bandyopadhyay, 2017).
Increase innovation and management learning-Expansion of business internationally forces
the organisation to do new innovation for being in the competition and also the
organisation learn new management skills from other competitors. Shell needs to enter in
the international market for learning new skills that help in the growth of the business (Rishi
and Bandyopadhyay, 2017).
Economics of scale-Exporting of products that are widely accepted around the world and
Shell needs to do emphasis on the exporting of oil and energy resources for the growth of
economics as oil and energy resources are very important for every organisation (Rishi and
Bandyopadhyay, 2017).
Competitive strike-Entering in the international market increases the competition of the
organisation. By increased competition many of the competitors move on and also the
company focuses on winning the competition. Shell needs to enter in the international
market that helps in the growth of the organisation (Rishi and Bandyopadhyay, 2017).
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ROUTES TO ENTER IN THE INTERNATIONAL MARKET
Entering into the international market is quite difficult for local companies. The company
need some mode through which they can enter in the international market. The company
needs to make proper planning and strategies before entering the international market as
well as needs good knowledge about the international market (Chenery et al., 2015).
Franchising the brand- Franchising the brand with the international company is the best
way of entering the international brand. This allows the international company to open the
branch internationally. The shell can adopt the way by franchising the product brand with
international companies (Chenery et al., 2015).
Direct exporting- Direct exporting is the easiest and most common way of entering the
international market. In the strategy, The Company directly export the products
internationally. Agents and distributors play the role of a business partner in exporting the
products. Shell needs to adopt the strategy for exporting oil and energy resources (Chenery
et al., 2015).
Partnership-Partnership refers to getting a partner in another country that will help in the
expansion of the business. Expand the business by helping financially, or by promoting the
product and have some share in the profit of the business. Shell needs to do a partnership
with other company that helps in the expansion of the business by financing, promoting or
selling of the product (Chenery et al., 2015).
Joint ventures-Joint venturing is merging of two brands for a particular time period for
establishing a new firm. In these two companies from different countries set up a
partnership for establishing a new business. There are equal shares of both companies and
stay separate from each other, but work together for the new business. Shell needs to set
up a joint venture that helps in the development of new business (Chenery et al., 2015).
Licensing-licencing is the process in which the company directly interact with the foreign
firm and ask them to own the product. Shell needs to interact with foreign companies for
expansion of business (Chenery et al., 2015).
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M1 OPPORTUNITIES AND CHALLENGES FOR ENTERING IN THE
INTERNATIONAL MARKET
OPPORTUNITIES
Opportunity is the chance of getting advantage from the business. Royal Dutch shell needs
to use the opportunity for entering the international market. The international market has
various opportunities for the domestic company to enter into the international market
(Lazaris and Freeman, 2018).
Importing and exporting- Importing products from foreign companies and exporting
domestic products internationally are the best opportunity for organisations to enter in the
international market. Shell has a great opportunity for entering the international market
with the help of import and export (Lazaris and Freeman, 2018).
Licensing- licensing refers to the agreement for using the brand or property with legal
authority. Shell needs to use this process as an opportunity by taking the license of using the
brand name for the oil and energy resources (Lazaris and Freeman, 2018).
Franchise- Franchising is an opportunity that allows many companies to expand the
business in the area of location with maintaining the brand name and control on the
business. Shell needs to tie with other companies for franchising that help the organisation
in the expansion of the business (Lazaris and Freeman, 2018).
Outsourcing- Outsourcing refers to the process of expanding the business with the help of
the third party that benefits in providing low cost, experience and great skills. Royal Dutch
shell needs to interact with the third parties to earn material at low cost, highly skilled and
experienced labour that helps in the expansion of the business (Lazaris and Freeman, 2018).
CHALLENGES
Challenges may be defined as the issues faced by the organisation while entering the
international market. The organisation needs to analyse and use the challenges as an
opportunity. The challenges may be the physical distance, the culture of the country,
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organisational culture, tariffs and export fee, human resources, market environment and
selection of the right country (Knight, 2015).
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LO2
An organisation needs to face many challenges while entering the international market, but
there are lots of opportunities and benefits of entering the international market. The
organisation needs to look after some of the key factors for the success of the business
(Armstrong et al., 2015).
P3 CRITERIA AND SELECTION PROCESS FOR CHOOSING THE CORRECT
INTERNATIONAL MARKET
Selection of the correct market is an important aspect for every organisation as the success
and the failure of the business depends on the market. Shell needs to enter in the market by
properly evaluating the market environment and after that selecting the market (Urbaniak,
2018)
International marketing objectives- Royal Dutch Shell needs to find the objective of the
market as not all the market has the same objective. The market objectives play an
important role in the earning profit for the business (Urbaniak, 2018)
Parameters for selection- Shell needs to focus on the parameters for selecting the best
market the parameters may be government policies, market environment, competition,
resources and international environment (Urbaniak, 2018)
Preliminary of screening- Preliminary screening is the process of eliminating the market
that is not beneficial for the business. Shell needs to find out those international markets
that help in the development of the business (Urbaniak, 2018)
Evaluation and selection- The selected market then evaluated on the basis of cost benefits
and attractiveness. Shell needs to properly evaluate the market for the growth of the
business (Urbaniak, 2018)
Test marketing- A small scale production is tested in the selected market for testing the
feedback of the market. Shell needs to evaluate the market on the basis of feedback
(Urbaniak, 2018)
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Commercial production- If the organisation gets positive feedback then the company can
start the mass production for business. Shell needs to evaluate the feedback properly and
after that need to produce the mass scale of oil and energy sources (Urbaniak, 2018)
P4 DIFFERENT MARKET ENTERING STRATEGIES INCLUDING ADVANTAGES
AND DISADVANTAGES
Every organisation needs a strategy for entering the international market. There are many
ways for entering in the market and has lots of advantages and disadvantages. The company
needs to evaluate the factors before entering in the market (Rexhepi, 2015).
Direct exporting- Direct exporting is the selling of product directly in the international
market. The agents and distributors act as the partners of the company. The advantage of
direct exporting is there is less risk in the manufacturing of the product then overseas and
gives an opportunity to learn the overseas market. The disadvantage is the lack of control on
the agents and distributors. For example, in the direct exporting of African products, the
agents and distributors are less loyal that leads the business downstairs (Rexhepi, 2015).
Licensing- licensing is the process in which the company directly interact with the foreign
firm and ask them to own the product. Coca-cola is the best example of licensing. Many
companies have the license to make coke. Licensing is a good way to start the business in
foreign and also no tie-up of capital is there. The disadvantage is limited participation
(Rexhepi, 2015).
Franchising- Franchising is the process that allows the companies to expand the business in
other location with maintaining the brand name and control over the business. The
company get advantage of foreign earning and internationalisation. The disadvantage is the
company needs to do lots of planning and have to choose the correct partner (Rexhepi,
2015)
Partnering- Partnership refers to getting a partner in another country that will help in the
expansion of the business. For example, the partnership between Google and Luxottica is
one of the best partnerships in the world. The advantage of the partnership is increased
capital, faster growth and cost saving (Rexhepi, 2015).
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Joint ventures- In these process two companies from different countries set up a
partnership for establishing the new business. For example, Sony Ericsson is a joint venture.
The advantages of joint venturing are getting better resources and new insights and
expertise. The flexibility is not restricted (Rexhepi, 2015).
M2 MARKET EVALUATION CRITERIA AND STRATEGIES FOR ENTERING IN
MARKET
EVALUATION CRITERIA
Market evaluation criteria play an important role in entering in the new international
market. Every organisation needs to evaluate the market properly before entering for the
growth of the business. Royal Dutch Shell needs to follow the evaluation criteria properly
before entering the market (Herold et al., 2017).
Producing an initial list of the potential new market- Shell needs to prepare a list of
companies in the international market which have great potential and are beneficial for the
organisation. The organisation needs to choose the market that is related to the business
i.e, oil and energy sources (Herold et al., 2017).
Eliminating the less attractive market- After preparing the list of the international market
the next step is to eliminate the market that is not beneficial for the organisation. Shell
needs to eliminate the markets which are not attractive or less beneficial for the business.
The main emphasis is on eliminating those markets that are not of the oil and energy sector
(Herold et al., 2017).
Selecting the most attractive market- After eliminating the less attractive market the final
step is to select the best market in the list of the remaining market. Shell needs to choose
the market that provides profit to the organisation. The market should be attractive and
help in the growth of the organisation (Herold et al., 2017).
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