International Marketing Report: Strategies and Market Evaluation

This report delves into the core concepts of international marketing, outlining the rationale for organizations to expand globally and exploring various routes to market, including exporting, franchising, licensing, foreign direct investment, and joint ventures. It examines the key criteria and selection processes for entering international markets, alongside a detailed analysis of different market entry strategies, their advantages, and disadvantages. The report uses Morrisons as a case study to evaluate market entry strategies. The report covers the scope of international marketing, including domestic and export marketing, key concepts like the production, product, selling, and marketing concepts. Furthermore, it explores the opportunities and challenges organizations face in international marketing, such as cultural differences and political instability. The report also includes an overview of the selection process, including international marketing objectives, parameters for selection, preliminary screening, shortlisting of markets, evaluation, and test marketing. Finally, the report addresses international marketing approaches and the comparison of home and international orientation.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Scope and key concepts of international marketing..............................................................4
P2 Rationale for an organisation to market internationally and various routes to market.........5
M1 Opportunities and challenges that marketing internationally presents to an organisation...7
TASK 2............................................................................................................................................7
P3 Key criteria and selection process to use while considering which international market to
enter............................................................................................................................................7
P4 Different market entry strategies including advantages and disadvantages..........................8
M2 Market evaluation criteria, entry strategies and recommendations in context with
organisation.................................................................................................................................9
D1 Critical evaluation of international market that how organisations should consider
marketing strategies for different markets..................................................................................9
TASK 3 & TASK 4 ......................................................................................................................10
Covered in power point presentation........................................................................................10
CONCLUSION.............................................................................................................................10
REFERENCES .............................................................................................................................10

INTRODUCTION
International marketing refers to the performance of all kind of business activities which
is made in order to plan, promote as well as direct all company goods and services on
international basis to earn better profits. The main goal of company is to sell their products in
those countries where there is demand of those products. There are certain ways through which
company can enter in international market like with the use of exports, global web strategy,
licensing and franchising, direct investment as well as joint ventures also. Companies like to
expand their market on international basis because they find a large scale operation and huge
market is available which is not possible while doing marketing across the nation only. The
below report includes concept of international market and routes to market, selection process,
market entry strategies, arguments in both global and local debate, elements of marketing plan. It
also involve different international marketing approaches and comparison of home and
international orientation. The below report is based on Morrisons. It is the fourth largest chain in
UK. The company main products are food and drink, books, clothing, magazines. It was founded
in 1899 by William Morrison and opened their first supermarket in Victoria.
TASK 1
P1 Scope and key concepts of international marketing
International marketing is considered as the method of exchanging all products and
services across borders of nation in order to meet customer demands. It includes various factors
like product, price, different brands and so on. There are two types of marketing which are
domestic and international marketing. While expanding the market on international basis
marketing manager must have the skill of understanding whole environment and how
customers , suppliers think in complete different country. There are certain key concepts while
following the process of doing market internationally and it been explained as below:- Domestic marketing:- It is defined as a type of marketing in which all type of marketing
activities are been targeted in their home country only. When a company achieves growth
in their own sector then they decides to enter new markets, use different technologies but
within their country only. Export marketing:- It is defined as the stage of expanding the market outside the
country. The main objective of this stage of export marketing is to mainly expand their

market size. All products are produced in their country only but are exported outside the
country also. When companies follow the stage of doing export marketing, at their initial
level they don't do much investment.
 International marketing:- Instead of just operating in home country and exporting some
products in other countries now company focuses on entering other countries also and
start doing operations in those countries. While doing international marketing company
change their strategies also and expands manufacturing, production and certain other
activities also.
There are certain other key concepts also with respect to international marketing and it is been
explained as below:- The production concept:- It is defined as the concept of those products that will be
selected by customers which are available at a large scale and are not much expensive.
So, mainly in this concept focus is mainly on increasing the output and then fulfilling all
needs of consumers. The product concept:- It is defined as those products which will be accepted by
consumers are of best quality and has advanced features. The selling concept:- While selling all products promotion is very much necessary
because unless promotion is not done customers will not purchase products. So, it is
defined as the concept in which customers demand certain promotions been done. The marketing concept:- Businesses has to do much marketing efforts in order to attract
customers and be successful. It depends on those efforts only to become better than
competitors.
Scope of international marketing Imports:- It is defined as the concept of bringing products from outside and then it to
customers within the country. It is been analysed that companies use importing in order
to enhance their production line. Exports:- It refers to selling products outside the country in order to earn more profits.
Even if companies has not fully managed products they export semi managed products
also. Contractual agreements:- In terms of contractual agreements they can be into certain
forms like licensing, trademarks and many more. In context with licensing, it means that

a company gives approval to other company in order to manufacture their product for a
certain amount of money.
 Contract manufacturing:- It is defined as the concept of hiring other company to
produce their company products. While doing international marketing it is considered as
the best option.
P2 Rationale for an organisation to market internationally and various routes to market
For an organisation there are many reasons to expand their market internationally and it
is been explained as below:- Increased profitability:- While expanding the market internationally companies are able
to increase their revenue as well as decreasing overall operational costs. With the help of
doing market internationally companies can attract more customers. While doing
marketing within the country only much technologies are not used but while expanding it
to international market advanced technologies are used to generate more profit. Economies of scale:- While doing marketing at international level and entering the
foreign market it becomes beneficial for company because they achieve greater
economies of scale. It becomes an opportunity for company to expand their company at
high level and generate new products.
 Attracting new talents:- Entering into international market companies gets an advantage
of attracting new talents as there will be people who know different languages and
belong from different culture so it is beneficial for them as they can attract more
customers .
In context with Morrisons, their man reason of entering foreign market because it became
necessary for them to deal with their main competitor TESCO. So, instead of just been a national
operator they need to operate internationally also. With the help of this they can achieve high
economies of scale due to which their costs can get reduced.
Various routes to market internationally Exporting:- It is considered as the best way to enter into foreign market and it assures
low risk also. While applying the method of exporting, companies find it cost effective
because high amount of investment is not done as products are produced in home country
only.

 Franchising:- It means that business owner gives certain rights to other person or group
of individuals to run their business in selling all products and providing services. Licensing:- It is defined as the concept of giving permission to another organisation for
using their property. It does not include much investment to be done and provides high
return on investment. Foreign direct investment:- It means to directly invest in all facilities that are been there
in international market. It needs huge capital in order to deal with costs like advanced
technologies, staff and many more. Foreign direct investment can be done in two ways
like creating a new venture or acquiring an existing organisation only.
 Joint ventures:- It means an arrangement been done between two or more parties mainly
for the purpose of creating a new business. The contribution of investment to be done is
contributed equally and all income and expenses are also divided in equal manner.
In accordance with Morrisons they entered foreign market with the help of joint ventures. As
they decided to expand their market in Australia so they decided to use the help of joint ventures.
M1 Opportunities and challenges that marketing internationally presents to an organisation
There are many opportunities and challenges that organisation can face while doing
international marketing and it is been explained as below:-
Opportunities:- Learning a new culture:- It gives an opportunity to company to learn a complete
different culture and working with new business partners. It helps them to attract large
number of customers because they work with new business partners which have better
knowledge of their culture. Company reputation:- When company expand their market internationally their
reputation also gets improved. It is not easy for company to earn reputation at initial level
so while hiring good business partners they earn better reputation and it is only possible
while doing international marketing.
Challenges:- Political instability:- While doing international marketing there are different political
systems and different economic systems in every country and it becomes a major
challenge for them. As all economic policies impact organisation while doing
international trade.

 Considerable diversities:- Every country follows their culture only, speak different
languages, have different demands so it becomes a challenge for them because they had
to deal with all difficulties that they may face. It also becomes difficult for them to
promote their products as company has to it according to their culture.
TASK 2
P3 Key criteria and selection process to use while considering which international market to
enter
When company decides to do international market, they had to select a efficient market
so that everything can be managed well. There are various steps which need to be followed
while selecting which market to enter and it is been explained as below:- International marketing objectives:- It refers to the process of determining overall
objectives of an organisation. While selecting the international market it must be selected
on the basis of all objectives whether it will be achieved but there may be some market
ideas which not be effective for other international markets. So, it must be selected while
considering both markets. Parameters for selection:- There are different elements which should be considered
while evaluating international market so that business enters a correct international
market. The different parameters are situation of markets, competition level and many
more. Preliminary screening:- It refers to the concept of removing all those markets which are
not effective for businesses. After selecting market on the basis of parameters screening
is done in terms of political conditions, per capita income, population size. Short listing of markets:- After selecting certain markets removal of those markets has
to be done which are not at all effective. There are many markets but the most effective
one is selected. Evaluation and selection:- When short listing is done of effective markets they had to be
evaluated also on the basis of cost benefit analysis and feasibility study. When evaluation
is done the best international market is selected.

 Test marketing:- It is the last stage in which international market is tested at small level
in which products are launched in that specific market. When companies start getting
positive response then they produce it on large scale basis.
P4 Different market entry strategies including advantages and disadvantages
There are different type of market entry strategies like licensing, franchising, exporting
and many more. It is been explained as below:- Licensing :- In context with licensing, it means to give permission to another company
in relation to manufacture their own product for a certain amount of money. Licensing is
beneficial because it creates new opportunities for business because it doesn't require
much investment to be done and through this the company can increase their reputation
also but it has certain drawbacks also as they lose control over licensee because it would
be all their production facilities and it can also affect reputation as if any kind of
mismanagement would be done then reputation of both parties will be affected.
 Franchising:- In context with franchising it refers to a type of business in which there
are many owners and they all share a single brand name. It is beneficial because with the
help of franchising international expansion becomes easier as well as fast due to good
market knowledge but while doing franchising it may require more investment also in
form of both management time as well as capital.
In context with Morrisons, they had signed a long term franchise as well as a supply agreement
with Sandpiper which is a operator of 43 mini supermarkets. In terms of licensing Ocado has
initiated a licensing partnership with Morrisons and through this agreement company was
allowed to use Ocado technologies.
M2 Market evaluation criteria, entry strategies and recommendations in context with
organisation
In context with Morrisons they had evaluated their market criteria on the basis of price,
location, quality as well as all products are provided at time period been set. There are different
market entry strategies like exporting, licensing and many more so all strategies were beneficial
for them. It is recommended that Morrisons should use the strategy of licensing and franchising
because it will be beneficial for them by giving permission to another company and it is also
recommended that company should focus more on quality rather than price.

D1 Critical evaluation of international market that how organisations should consider marketing
strategies for different markets
While evaluating international market organisations should focus on identifying effective
countries and identifying competitors. It is necessary to identify effective countries because
while generating new businesses they must have the capacity of returning better results and
identifying competitors it is necessary because it determines how resources should be used. In
context with Morrisons, they should use the entry strategy of franchising and licensing in order
to achieve all targets.
TASK 3 & TASK 4
Covered in power point presentation
CONCLUSION
From the above report it is been concluded that in today's world expanding a business at
international level is very important. As there are many competitors in the market and everyone
tries to use best strategies possible so to deal with them expanding the market globally is needed.
It is also been analysed that while enhancing the market company should develop such culture
which is appropriate for foreign market so that in future companies don't have to face problems.

REFERENCES
Books and Journals
Asseraf, Y., Gnizy, I. and Shoham, A., 2020. International marketing doctrine: the use of
guiding principles.International Marketing Review.
Baumgartner, H. and Weijters, B., 2021. EXPRESS: Dealing with Common Method Variance in
International Marketing Research.Journal of International Marketing, p.0022242921997081.
Cateora, P.R., and et.al, 2020.International marketing. McGraw-Hill Education.
Farrell, C., 2020. Do international marketing simulations provide an authentic assessment of
learning? A student perspective.The International Journal of Management Education,18(1),
p.100362.
Hewett, K., 2020. Advancing international marketing thought based on the China experience.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing.Journal of
Strategic Marketing,28(8), pp.681-701.
Rana, S., and et.al, 2020. Determinants of international marketing strategy for emerging market
multinationals.International Journal of Emerging Markets.
Sheth, J.N., 2020. Borderless media: Rethinking international marketing.Journal of International
Marketing,28(1), pp.3-12.