International Marketing Management Report: Marks & Spencer Strategy

This report provides an in-depth analysis of international marketing management, specifically focusing on Marks & Spencer's strategies for global expansion. It begins with an introduction to international marketing and its importance, followed by an examination of the reasons behind firms' international marketing development, including a PESTLE analysis to assess the macro-environment. The report delves into marketing concepts, including the marketing mix, and evaluates the costs and benefits of international market presence. It analyzes STP marketing strategies, international marketing research techniques, and various methods for market entry. Furthermore, it discusses distribution channels for product export, the process of making international investment decisions, and the role of the marketing mix in sustaining a competitive advantage. The report concludes with a comprehensive overview of the topics discussed, providing valuable insights into international marketing management.

INTERNATIONAL
MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Discuss reason behind development of international marketing in firm with its Pestle
analysis...................................................................................................................................3
1.2 Assess the elements and process of marketing concept and cost and benefits of its present
market.....................................................................................................................................5
Analyse STP marketing strategy of organisation...................................................................8
TASK 2............................................................................................................................................9
2.1 Discuss the international marketing research techniques.................................................9
Discuss the uses of techniques and evaluate method for entering market...........................11
Discuss the distribution channels for export of products and services.................................14
Analyse how international investment decisions are made by the firm...............................16
TASK 3..........................................................................................................................................18
3.2 Difference between marketing mix and extended marketing mix..................................21
3.3 Discuss the role of marketing mix in sustaining competitive advantage.......................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
International marketing management plays a major role in research of foreign markets
which helps the companies in establishing their market in new country and also provides stability
in products, customers and profits. It is an application of marketing in more than one country and
also there is a connection between global marketing and international marketing which stands on
a same level. Further, this report will analyse the factors and techniques used by Marks and
Spencer for international marketing management. M&S is the leading fashion retailer of UK and
now has expanded its market into food industry to gain major number of customers across the
globe. Further, the company is planning to expand its market in new countries so the
international marketing manager of M&S will evaluate the marketing concepts and Pestle
analysis to research about macro environment of the organisation.
Moreover, the report will evaluate marketing research techniques use by the manager and
segmentation, targeting, positioning of the market in response to products and services launched
by the firm. Besides, the marketing manager of Marks and Spencer will analyse the investment
decisions made and how the company maintain its sustainable development globally. Hence, the
report will focus on basic marketing tools used by the manager when the company plans to
expand its boundaries within the foreign market. Marks and Spencer basically deals in Apparels
therefore it is important for the company to evaluate the market trends in order to serve
satisfactory services. The firm has 30 stores in United Kingdom with 45 different departments of
clothing. The focus of company is to maximize profits and revenue by offering services keeping
in mind taste and preferences of buyers. It was formed in 1884. The quote and vision of
enterprise is “don’t ask the price, it's a penny".
TASK 1
1.1 Discuss reason behind development of international marketing in firm with its Pestle analysis
In today’s competitive market, firms are facing a lot of problems in marketing of their
product. For the expansion of business it is important for the firms to use some techniques to
encourage the marketing of the firms' product and services. Marketing of product at international
level is the most significant method to improve the sales and to capture the target market. Firms
prefer international marketing to know the demand of their products in other countries
(Rothaermel, 2015). This helps them in making the product more reliable towards the
international customer. It helps in improvement of the product marketing policies. Branding of

the product at international level makes the belief of foreign customers towards the firms. And
the companies will get the opportunity to expand their business at the international level. In the
context, As an international marketing manager of Marks & Spencer in UK. We have done an
analysis of the company’s international marketing requirement. It has been considered that the
company wants to expand its business in other countries also in order to enhance its products
credibility in the international market.
In this analysis we have recognised some marketing concept elements which are helpful
in determination of marketing needs at global level of Marks and spencer such as customers
mind set or its psychology towards the products of the firm. It is the main element for the
company marketing policies to know the actual preference of the customers towards the
products. It is being recognised that the consumer get influenced through many ways and to
convince them to purchase the products. Due to changes in marketing policies of the competitors
the consumers get affected and they will prefer to change their mind-set towards the product of
the competitors. The company has to analyse the competitors marketing methods to grab the
customer's attention and have to make necessary changes in the products and services and
marketing policies.
Another element is company's marketing mix which covers all the elements of the marketing
such as:
 Product: It is an important element of the marketing which means to identify the right
product for the market which is targeted by the company.
 Price: It is the priority of the company to make the price of the product relevant for the
customers, so that they take interest towards the product.
 Place: The Company has to find the correct place for the marketing of product because it
will boost the credibility of the product and helps in finding their targeted customers for
the sale of the product.
 Promotion: After determining the other three elements, we have to recognise the
methods through which we can promote the product and services to the customers.
Further, analysing the element we move towards the steps must be followed towards the
marketing of the business at international level (Hairand et.al. 2012).
 Determination of goals: The initial stage of marketing at international level starts with the
clear identification of the goals to be achieved by the company. In this process we have to

analyse the objectives of the Marks and Spencer towards their international business
promotion.
 Analysis of the situation: For the further promotion and marketing of the product in other
countries we have to recognise the situation or the condition of the market of the
particular country in which the company want to expand its business. With the SWOT
analysis, PEST analysis of the company we will analyse the situation (Hodgkinson and
Healey, 2011).
 Focus on the marketing strategy: After analysing the situation we have to develop a
perfect strategy and have to focus to follow up of the strategy. We have to sure that the
strategy which we are implementing should make positive effects on the marketing of the
product of Mark and Spencer.
 Decisions towards the marketing elements: fore marketing at international level we have
to take decisions regarding the influence of marketing mix. Selection of the correct
elements has been done for the expansion of the business. Such as development of the
product, decisions towards the pricing, distribution, organising of the promotional
activities.
 Follow up and control: This stage of the process at which the proper plan or effective
strategy has to be followed by for the marketing and development of the company's
international business.
1.2 Assess the elements and process of marketing concept and cost and benefits of its present
market
For the purpose of the marketing at the international level there is a requirement of
analysis of cost and benefits for the company. Orientation of the marketing makes a clear
analysis of the cost of promotion of the product at the international level and the benefits for the
company. Orient ion of marketing of the company focuses on the fulfilment of the customer
demands and to satisfy the customers of targeted country. It will completely make the company
aware about the preference of the customers. In relation to this, for the marketing of the product
of the Marks and Spencer marketing orientation is necessary to satisfy the demand of the product
of the targeted customers and provide them satisfaction. It is also done to analyse the cost and
benefits of the marketing for this company. We have recognised that the marketing orientation

makes the customers aware about the products and helps in changing the psychology of the
customers. It will reduce the cost if the product will satisfy the customer needs and the customers
will give the preference of their products to the other.
For the further analysis of the marketing at the international level we have used PESTLE
analysis to clear the impact of the factors that will affect the promotion and development of the
products of Mark and Spencer. This analysis consist some factors which are as follows:
 Political factors: These are factors which include the rules and regulations made by the
government for the marketing of the product. It has been recognised that different
countries have their own regulations developed by the governments which will affect the
company’s marketing strategy and will affect the cost and benefits of the marketing for
the company. In this factor we have recognised some political factors that influence the
business of the Marks and Spencer. We have to develop fair trade policies at international
market so that the company would achieve the goals without any interference of the
government policies, marketing of the product which are not up to Standards will affect
the norms and the company will face the critical condition in the market, products which
we are promoting will contain the good elements and will not harm the customer. We
have to take care of health and safety of the customers. Thus, these factors will provide a
negative impact on business operations of Marks and spencer.
 Economic factors: These are the factors that influence the current economic conditions
of the company in the international market. Due to the recession in the economy of the
countries the companies economically affected and there marketing conditions at
international level is different quite low. There are various factors such as rate of interest
prevailing in the country which will affect the business of the mark and Spencer; Interest
rate fluctuations will affect the price which influences the marketing of the product.
Demand and supply of the products in the market, this is also factored which will affect
the business. Changes in the demand and supply in the international market will affect the
marketing strategy of the Mark and Spencer. It will influence the company to change its
strategy to achieve the target market. Recession in the country will affect the buying
behaviour of the customers which influence the companies to reduce their prices and
influence the marketing strategy. These economic factors have also provided negative

influence on business operations and organization needs to develop effective policies
through which they will be able to minimize their influence.
 Social factors: In past few years, social factors will also affect the business of the
company. People of every country will have different perception brands and will
purchase the products according to their preference. Behaviour of the customers towards
the purchase of the product will get influence by cultural values, social values and
consumer’s psychology. Mark and Spencer is the company which has various stores in
the different countries. As compared to UK, in country like Australia companies have
different perception towards the product of the Mark and Spencer. The company want to
expand its marketing and for this we have to develop strategies so that the customer will
get influence and company will achieve its objectives. Moreover, there are various social
factors that affect the marketing and business operations of marks and spencer like
perception, values, age and income level of consumers etc. Therefore, company needs to
develop and implement the strategy through which they will be able to satisfy the needs
of consumers.
 Technological factors: Mark and Spencer market will also get affected due to
technological changes in Australia s compressed to UK (Keupp, Palmié & Gassmann
2012). In the retail market the technological factors plays a significant role. Rapid growth
in technology has provided as provided a positive influence on business operations of
company as it has increased various channels of communication through which the
company the company is able to provide information about products and services to
consumers etc.
 Environmental factors: These are factors that influence the company’s marketing and
business. Mark and Spencer get affected by these factors due to changes in environmental
conditions in Australia as compared to the UK. In foreign market the customers will
prefer the products according to the atmosphere of the country and we will have to make
changes in the marketing according to changes in the conditions. Further, there are
various factors like changes in environmental factors like channel of distribution, climate
changes and preference of consumers towards the products of marks and spencer.

Analyse STP marketing strategy of organisation.
1. Geographic Segmentation: In the analysis of market segmentation, the companies target
the customers on the basis of Geographical area. It has been considered that customers of
different geographical area have some other preferences. It is a type of segmentation in
which there are different marketing strategies for different geographical area (Leff and
et.al. 2014). The marketing of the products is based on the preference of the customers of
different market segments. In the context, M&S will use geographical segmentation
methods to enhance its business in the other country like Australia.
 Demographic segmentation: for the marketing of the product at the international level it
is the simplest form of market segmentation. In this segmentation the M&S will generally
divide the customers on the basis of different variables like age of the customer, race,
gender, occupation, nationality etc. it has been considered that the customer's reference
will change according to these elements. To enhance the sale and promotion at
international level we can target the customers on the basis of these variables.
 Psycho graphic segmentation: in this type of market segmentation the company will
target customers on the basis of opinion, psychology, lifestyle, activities etc. In this
segmentation the companies will develop different products for every targeted segment
on the basis of these variables.
 Behavioural targeting: The companies will target customers on the buying behaviours.
In this method the customer’s behaviours will change on the basis of their financial
position, earning or way of thinking (Leeflang and et.al. 2014).
In the above method of segmentation, the targeting of the customers is necessary to
analyse the customers for the product. As the international marketing manager of the M&S we
have recognised that there are wide opportunities for the company for the growth of its products
if we will target the customers on the basis of behavioural segmentation. We will target the
customers according to their buying power (Karjaluoto, Mustonen and Ulkuniemi, 2015).
Apart from this, there are various benefits and costs of marketing orientation in context of M&S
are described below:
Benefits

 Responsiveness: Marketing orientation is considered as beneficial for M&S as it enable
them to develop and produce new products that not only meet the demands of consumers
but also do it in specified time duration. It enables the firm to respond the market changes
and reliability on data analysis also supports with accuracy of market understanding.
 Constant improvement: It also helps to drive a constant improvement in M&S
processes and systems as it promotes a culture of experimentation. Leaders and managers
of company and functional departments eventually explore the opportunities to improve
upon products and services.
Costs
 Requires high investment in market research as the company needs more powerful
market intelligence to respond changes.
 Technological infrastructure is also critical in 21 century as companies use the database
to collect, analyse and use the consumer data.
 There are major external influences that can affect the level of success M&S have with a
market orientation.
 Retail industry which is experiencing the limited growth and high competition may
provide less return on investments in market orientation.
TASK 2
2.1 Discuss the international marketing research techniques.
International marketing research is done by marketing manager to collect and gather data
about the targeted market and targeted customers. It is done by the manager of M&S to establish
in-depth view of consumers in order to satisfy their need and wants in a better and developed
way. This process of collecting information is essential for manager as it is all about whether the
company will be able to compete with other firms of retail industry so its helps the manager in
analysing the market needs, competitors and market size. International marketing manager OF
M&S focuses on basic but necessary factors of investigation in marketing research which are as
follows:
1. Segmentation of market: Manager first focuses on diving the market into sub-
groups with similar features. This is done on the basis of choices,
demographics, personalities, gender, etc.

2. Trends in the market: Marketing manager of the company knows that market
trends keeps on fluctuating so the company traces the marketing trends and
movements for a continuous period in which it wants expand its market.
3. Information available: The firm collects the pricing strategy and information
about the international market so that it becomes easy for M&S to launch its
products at prices which are easily accepted by the buyers.
4. Effectiveness of marketing: It is done by the marketing manager of the
company to analyse the new market risks, product research, competitors and
customers analysis.
5. SWOT analysis: Before expanding market the company need to do its SWOT
analysis to evaluate its internal strengths, weakness, opportunities, and threats.
Marketing research techniques used by the international marketing manager of M&S
are as follows:
 Primary Marketing Research: This research process is carried by firm to
collect information which can be used to improve the services, products and
functions of the organisations. Marketing manager of the company term this
as field work as it aims at market instead of analysing the already available
information. In this process of collection of data manager focuses at specific
questions and not relevant issues.
 Secondary Marketing Research: This method of collecting information do
not need field work of marketing manager but in this manager evaluates the
already given information through multiple sources. This data is based on
information collected by other people on same topic and available to manager
for free or sometimes paid. Further, this information is available to marketing
manager of M&S through many sources like, newspapers, office data,
internet, magazines and many more.
 Qualitative Research: It is qualitative market research as it focuses on
feelings and opinions of buyers for the products offered by the organisation. It
gives the idea to M&S, if the commodities offered by them are lacking
something. Researcher after this gives the idea to manager of firm, if there is

change needed in goods and services which the company is planning to launch
in new market.
 Quantitative Research: This research of marketing manager is based on
statistical data and hard facts instead of opinion and feelings of buyers. This is
useful for manager in both terms that is primary and secondary research. This
process helps the marketing manager in finding out the size of the
international market.
Hence, in international market research the company is focused on researching about Product
because acceptance for organisations products ad services plays an important role in determining
the successful business operations. Apparently analysing the promotional techniques used in
international market is important because it is the only strategy and technique which helps the
firm in creating awareness about its products ad services. Lastly, evaluating the appropriate
channels of distribution plays an important role in as it assist the company in connecting with
consumers by delivering their products and making easy availability of services.
Discuss the uses of techniques and evaluate method for entering market.
The marketing manager of Marks and Spencer uses five primary market research
techniques for entering into international market which are as follows: Focus groups: The best and effective way used by the marketing manager for conducting
primary research is by focusing groups. This aims at gathering people at one place and
asking them questions about the products and services offered by firm. Researcher of
Marks and Spencer asks question related to product development, their preferences and
feedback. Besides the manager uses the advanced technology for collecting information
like instead of physically meeting them manager conducts research through video
conferencing. Hence, when the company faces difficulty in decision of group or selection
of audience’s manager focuses on them by offering them free coupons, gifts, and
shopping vouchers. Survey and questionnaires: Second effective way followed by marketing manager for
conducting this research is survey and questionnaires. Survey is most used method as it is
broad term and covers survey interviews, buyer’s satisfaction card and survey forms and
many more. The survey is conducted by M&S in form of web questionnaires which
enable entity to collect feedbacks and analyse further management.

 Observation: This is done by researchers by either communicating with them or by
noticing their reacting towards the products and schemes offered by M&S. Manger uses
this process as it is a personal approach according to surveys. In-depth interviews: These interviews are based on choices and preferences of buyers.
The researcher follows this method to dig further information that what actually buyers
want and answers are evaluated at the time of conclusion.
 Trials and experimentation: In this method of research, hypothesis and variables are used
by manager. In this the company offers same product with different styles and offers
them to different consumers, then after sales the firm analyses sales of products and then
conclude with the packaging design.
Further, the manager of Marks and Spencer uses two secondary market research
techniques for entering into international market which consists of:
Internal Sources
These are those sources which are already available for manager and are gathered
through company's data base and file system. Internal sources of Marks and Spencer includes:
 Balance Sheet
 Profit and loss statements
 Inventory Records
 Sales figures
External Sources
Sometimes marketing manager is unable to collect much information through internal
factors so the company make use of external factors for gathering sufficient information. Hence,
the researcher uses information which is collected through outside which involves May sources.
The external information collection process is wide and varied that is why manager of M&S
follows this technique to assess information about the company. External sources of organisation
comprise:
 Internet
 Government Sources
 Competitor data of retail industry
Extended marketing mix