International Marketing Approaches: Amazon Case Study & Analysis

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This report provides a comprehensive analysis of international marketing, focusing on key concepts, strategies, and approaches. It begins by defining the scope of international marketing and the rationale for organizations to expand globally, highlighting various routes to market. The report evaluates the criteria and selection process for choosing international markets, using Amazon as a case study to illustrate different market entry strategies, including joint ventures, mergers, acquisitions, and exporting, along with their advantages and disadvantages. It also presents an overview of the global vs. local debate, examining differences in product, pricing, promotion, and distribution approaches in diverse international contexts. Furthermore, the report analyses various international marketing approaches and compares home and international orientations, outlining ways to assess competitors and the implications of each approach, with a particular focus on Amazon's strategies in the Indian market.
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International Marketing
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Table of Contents
INTRTODUCTION.........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse the scope and key concepts of international marketing......................................3
P2 Explain the rationale for an organization to want to market internationally and describe the
various routes to market they can adopt.................................................................................4
TASK 2............................................................................................................................................5
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter........................................................................................................................5
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each......................................................................................................6
TASK 3............................................................................................................................................7
P5 Present an overview of the key arguments in the global vs local debate..........................7
P6 Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international context...............................................................................................7
TASK 4............................................................................................................................................8
P7 Explain and analyse the various international marketing approaches organisations can
adopt.......................................................................................................................................8
P8 Compare home and international orientation and ways to assess competitors outlining the
implications of each approach................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRTODUCTION
International marketing is the application which complete the need of different people
who are living across the national or international border. International marketing is used to
increase high economy of scale, high market share, use an unused planned market and increase
the opportunities to expand the business in international market. There are various ways which
are adopted by different companies in order to enter international market (Baker and Saren,
2016). This can be include exports, Global web, Licensing and franchising, direct investment and
joint venture. For this assignment the chosen organisation is Amazon, which is an American
international technology company, founded in 1994 by Jeff Bezos. Headquarter is in Seattle,
Washington, United State. This project provide a review on amazon and its success growth in
India. This project consist a deep understanding for marketing contribution in international
marketing. Evaluate various success factors which are used by the organisation by entering
international market. Different types of marketing plan which are adopted by organisation to use
international market are analysis. In last international marketing efforts are demonstrate.
MAIN BODY
TASK 1
P1 Analyse the scope and key concepts of international marketing
International marketing are an important concept for business who want to expand their
business. It is concerned with international consideration and standardised market tools which
are spread across the world. International market is a simple application of marketing principle
which are applicable in more than one country (Cateora and et.al., 2020). The scope of
international market will make sure about the increasing market share and this will help in the
companies to increase the share of company in international market. This will further increase
the competition and increase risk and different type of challenges affect by the market within
organisation. Scope of international marketing include exporting of goods and services in foreign
markets. This include various things such as:
Establishing: International market help the company to expand their business by
establishing a new market in new place by processing, packaging and many more services.
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Joint venture and collaboration: This include the scope of international market while
establishing joint venture and collaboration in foreign countries with different foreign company
in order to increase sales and profitably.
Licensing arrangement: This system give the right to the company to work with the
foreign companies in other countries. This include patents, trademarks and many more financial
agreements.
Consultancy services: This service is covered in the scope of international market. Most
of the exporting company send their consultant in foreign country so that they guide their
employees to work effectively.
There are various factors which will make a strong impact on the scope of international
market. International market, make a strong emergence and influence of global trade and
services (Gupta, and et.al., 2016). It will create global acceptance and increase the usage of
internet and many other facilities. When a company enter into international market, the wide
range of opportunities are open up for them to expand their business and growth in market.
P2 Explain the rationale for an organization to want to market internationally and describe the
various routes to market they can adopt
The reason for choosing international marketing within organisation is to adopt different
kind of ways and procedure which open up the policies and opportunities for the companies
within market. Choosing international concept in amazon make a success and become a rational
objective of the company which create their own success in market. Amazon are reliable who
actually serve the customer or make the strong and effective relation to enhance their
competency within the marketplace or across globe. There are various routes which are adopted
by amazon to expand their business in India market (Katsikeas, Leonidou and Zeriti, 2019). They
grow their business in India via e-commerce facility and they are targeting to achieve the target
for $200 billion by 2027. The first step is to launch a website in 2013 with a custom domain
name for the market and customer of India. Furthermore they try to evaluate different solution
for the Indians in order to increase their own sale and attract more customer and gain trust. They
established near about 21 warehouses in all over India. Furthermore for increasing opportunities
in India they sale their products by suing customized pricing models for providing different
services in India.
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Amazon face various challenges while establishing service in India. First challenges is
the risk of fraud with online payment transactions. Another challenges is some regulatory
challenges as India's strict policy against foreign direct investment, which actually bound the
MNC's to consumer online (Kotabe and Helsen, 2020). All of these rational behaviour of the
company make them visible in the path of success and make them different from others. In
addition to that challenges, amazon has to use innovative business models to make strong
operations in India. Another main issue is to convincing retailers to sell their products at amazon
is the complex tool. All these challenges are faces by amazon in order to accomplish the target of
market in international market.
TASK 2
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter
Selection of market is an important tool for selecting the market which are adopted by
organisation regarding entering international market. When amazon wants to enter into India's
market. These criteria include:
Defining marketing objective: For making a successful organisation to go into market,
it is expected from them to achieve targets. The developing marketing objective of amazon
helpful for them to expand their business in the new market. The SMART objective for the
company is to expand their business in India, and expand their market till 2027 and their main
target are retailers.
Parameters for selection: An evaluation and proper selection of the objective are helpful
for achieving and discussing all parameters which are actually related to market expansion. This
will include organisational resources, nature of competition and different government policies.
Preliminary screening: To identify the objective and screening them to eliminate market
risk which are not potential for the company and their new market. This will help the company to
reduce the risk which are happening in market due to entrance of the company in new market.
Short listing of market: here company choose the appropriate market options which are
helpful for achieving organisation's objective and goals (Lu, Scholz and Nguyen, 2018). As
amazon choose Indian market in order to increase their profit and sales.
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Evaluation and selection: after selecting a market it is again evaluated on the basis of
cost benefit and feasibilities studies. Then rank all of them and choose the best one which
actually accomplish the rules and objective of company.
Test marketing: In starting, market are tested by the company while establishing a small
market and small scale by launching new product in market. Then analysis the feedback about
the market and take the decision to continue in market or expand further.
Commercial production: once the test result comes positive, the company needed to
commercialize their products with mass production. With the help of advertisement on social
media and different other ways it is possible to commercialize their products in such a way that a
customer will attract and support the company’s sale and policies.
P4 Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each
There are various market entry strategies which are helpful for the company to expand
their business. Every market strategies have their own advantages and disadvantages to choose
the right entry option in international market (Murphy, Laczniak and Harris, 2016). Amazon go
through with all market strategies and choose the appropriate one which are helping in achieving
company's goals.
Joint venture: When foreign market join the hands with local investors to start a
business then it will know as joint venture. Amazon use joint venture to come in India by using
different joint venture with local suppliers to gain the trust on Indian customers. It is helpful in
expanding resources to expand their operations and a complete control over the projects is not
necessary for the success venture. But some problems which are comes are failure for selecting
the right partner and high price competition.
Mergers and acquisition: It is the process where all the companies are right now
interested in sharing profits. It is good when a company do not want sale their company but they
want to expand it in international platform. The disadvantages is time lag and uncertain process
which are using by other employees. This is the stable way as compare to others, having
probable disadvantages of this strategy, this is one of the most adopted strategy by the companies
in market.
Exporting: It means selling the direct sale of goods and services in another country. It is
one of the oldest method and well established method for reaching in foreign market without
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more investing there (Pedada, Arunachalam and Dass, 2019). This is very fast and low risk factor
which are used by amazon. But at the same time they have less control in foreign market, low
knowledge and negative environmental impact of different use of transportation. But amazon use
this technique in order to attain more market sector in India.
TASK 3
P5 Present an overview of the key arguments in the global vs local debate
In today's world, the debate is on standardised and adoption in the marketing which has
marked a spark a debate for decades. In today's market globalisation will be effective and
standard an aim to operate company in new market or in local markets. Local market is the
simple tool which increase their ability to think global and act global. It is the activities which
are appointed through foreign market which define as strategies and company use different type
of influencer for deciding marketing strategies (Sharma, Kumar and Borah, 2017). When it
comes to local markets, people mostly try and develop their strategies and engage them sleeves
as the important part of the employees. The debate for local market vs. international market is
going on in market from many decades. They both have some advantages and disadvantages in
the market. In local marketing people try to develop engage right stakeholders. And local
marketer plan and make strategies to adopt different policies and practices. Local marketers
include a strong trust where as in global market the trust level is low. Local marketers have less
opportunists and less human labour to expand their business but in global market the
opportunities are increasing, new and innovative human capital are welcomed to expand their
business. The quality of the local products are more attractive and based on culture but in global
marketers, the quality is minimised which reduce the trust of people who are investing in
international markets.
P6 Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international context
Basic marketing concept tell us about the strategies which are using by the company to
meet the target audience in order to meet the desired targets. The right approach is based on right
product, their pricing, promotional and various distribution approach which are actually helpful
in international context.
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Product: product is the important tool for accomplishing marketing tools and a company
must consider different cultural, background, religion, buying habits and knowing the level of
personal disposable income of the company (Vellas, 2016). In amazon the products are the one
which are used by different suppliers so that customer can get all products at a single place.
Price: Pricing strategies in the international market contain various information and
things which increase the price of the product as compare to domestic markets. It include the cost
of transport, tariff charges on imports, exchange rate fluctuations, the currency price and the
general economic situation in the country. In the amazon they actually used customized pricing
models to serve the products in India. They use different pricing models in India as compare to
USA. And mostly they provide all in one service as their prime membership will be beneficial
for amazon prime video, songs, free home delivery and amazon kindle.
Promotion: With the help of international marketing concept it is explained that
promotion is an important tool for the company as it will help the company to gain the trust of
the local customer and it will affect the sale of company also. They used promotional techniques
in order to shipments and delivery solutions for the customer of India (Wanda and Razak, 2018).
They use joint venture with different suppliers and shipment companies of India which are easy
ship and seller flex. Who deliver the products to their owner in given time period?
Place: Place is the element which is used by the companies to distribute their products or
services to the customers. For amazon their place in international markets are India where they
want to expand their business at global level and enhance company’s position and employee’s
efficiency.
All of these promotion mix are suitable and distributive approach when the concept comes
for international markets. This is very important for the concept of international market to know
more about their promotional mix strategies within market with the help of these 4P’s.
TASK 4
P7 Explain and analyse the various international marketing approaches organisations can adopt
There are number of marketing approaches which are adopted by companies while
having international business marketing. The main two approaches are transaction cost
approaches and global integration approaches. And all approaches are focus on different
decisions of company and adopting global market strategies.
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The transaction cost approaches: It is the approach which is used for the development of
international market which are based on transaction cost analysis (Watson and et.al., 2018). This
approach is based on choice of entries into international market with the view of trade-off
control.
The standardised Perspectives: It is used for potential benefits of standardised different
elements for marketing mix tool which are actually used to adopt the strategies which are helpful
for selling products in local and global markets.
The global configuration: This use for starting the concept of company’s activity at
different stages in different countries to improve efficiency and gain the maximum competitive
advantage. This will improve the performance and competitive advantages for the growth of
company in the international market.
The Global Integration: It is the international approach which emphasis is placed on the
importance for conducting all major markets and use integrating strategies to develop markets.
This is mostly used to analysis the competitive analysis of company as amazon competitive
company is flip-kart.
P8 Compare home and international orientation and ways to assess competitors outlining the
implications of each approach
Market orientation is mostly use as the key factor for the success of domestic and
international markets. But the knowledge about degree of orientation remains limited for
different companies to know about the international orientation. Home orientation is related to
different opportunities which are useful for the companies which are relatable to different
changing need, taste and preference in order to introduce new and innovative products. While
comparing home and international market concept this is comes to know that both have some of
the advantages and disadvantages that may suffer within organisation and make a string impact
on the sales activities of the company. After knowing all this concept related to international
market (Wanda and Razak, 2018). In amazon it is important to expand their business for the
success growth of company. Major recommendation which are adopted by amazon in related to
international marketing concepts as to increase their warehouses in India and especially in Tier 3
cities. So that they can increase the trust of customer in market. They can further use more
updated technologies which ate helpful for customers to reach easily to company. All these
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strategies are helpful for company to growth in the international market and enhance the
goodwill of the company.
CONCLUSION
From the above report it is concluded that international market is an important tool for
expanding the business in international market. There are very large scope of international
market which actually help the company to expand its operation in all over world. International
market has various options which are useful for company and different option for routes to enter
in the market. With the help of right selection process so that they can adopt right market to enter
into international business. To enter into market different market entry strategies are used to
enter in international market. Although there are various arguments are stated in the context of
global and local marketers. This project help in understanding the concept of international
marketing efforts and a deep evaluation of marketing plan is important for inspecting
international market.
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REFERENCES
Books and Journals
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Cateora, P.R. and et.al., 2020. International marketing. McGraw-Hill Education.
Gupta, and et.al., 2016. Marketing innovation: A consequence of competitiveness. Journal of
Business Research, 69(12), pp.5671-5681.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era: opportunities, challenges, and research directions. International Marketing
Review.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Lu, V.N., Scholz, B. and Nguyen, L.T., 2018. Work integrated learning in international
marketing: Student insights. Australasian Marketing Journal (AMJ), 26(2), pp.132-139.
Murphy, P.E., Laczniak, G.R. and Harris, F., 2016. Ethics in marketing: International cases and
perspectives. Taylor & Francis.
Pedada, K., Arunachalam, S. and Dass, M., 2019. A theoretical model of the formation and
dissolution of emerging market international marketing alliances. Journal of the
Academy of Marketing Science, pp.1-22.
Sharma, A., Kumar, V. and Borah, S.B., 2017. Ritualization: A strategic tool to position brands
in international markets. Journal of International Marketing, 25(2), pp.1-24.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.]
Wanda, M.N.M.S. and Razak, F.Z.A., 2018. Cultural influence and international marketing: A
review of dimensions and market entering. EXCEL International Journal of
Multidisciplinary Management Studies, 8(7), pp.12-27.
Watson IV, and et.al., 2018. International market entry strategies: Relational, digital, and hybrid
approaches. Journal of International Marketing, 26(1), pp.30-60.
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