International Marketing Report: Expansion Strategies for 4Com Plc

This report examines international marketing strategies for 4Com Plc, a UK-based communications service provider, aiming for international expansion. The report begins with an introduction to international marketing, defining its scope and key concepts, and then explores the rationale for international expansion, various routes to market (franchising, direct exporting, and joint ventures), and the opportunities and challenges associated with international marketing. Task 2 delves into the key criteria and selection processes for entering new markets, including market research, analysis of market size, and understanding the business environment. The report then evaluates market entry strategies and makes recommendations for 4Com Plc's expansion. Task 3 addresses the global versus local debate, examining how product, price, promotion, and distribution strategies differ in international contexts. The report includes an evaluation of marketing mix strategies and applies them to various international scenarios. Finally, Task 4 explores different international marketing approaches, competitor analysis, and provides recommendations for organizational structure to increase opportunities for 4Com Plc's international success. The report concludes with a summary of findings and recommendations, supported by relevant references.

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Scope and key concepts of international marketing..............................................................1
P2 Rationale for it to want to market internationally and various routes to market...................2
M1 Opportunities and challenges that marketing internationally...............................................3
TASK 2............................................................................................................................................4
P3 Key criteria and selection process..........................................................................................4
P4 Various market entry strategies, including advantages and disadvantages...........................5
M2 Market evaluation criteria and entry strategies and make recommendations ......................7
D1 Evaluation of international market........................................................................................7
TASK 3............................................................................................................................................7
P5 Overview of key arguments in the global versus local debate...............................................7
P6 Product, price, pricing and promotional distribution approach differs in a variety of
international contexts..................................................................................................................9
M3 Evaluation of client organisation that adopts global and local approach.............................9
M4 Marketing mix of organisation in international market......................................................10
D2 Marketing mix is applied to a range of international contexts............................................10
TASK 4..........................................................................................................................................10
P7 Different international marketing approaches client organisation can adopt......................10
P8 Home and international orientation and ways to assess competitors...................................11
M5 Different marketing approaches and competitor analysis..................................................12
D3 Recommendations organisations should be structured to increase opportunity.................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
International marketing is the application of marketing principles to satisfy the varied
needs and wants of different people residing across the national boundaries. Through
international marketing performance of business activities designed to plan, price, promote and
direct the flow of a company's goods and services to consumers more than one nation to earn
profits. For expanding business to international markets professionals discovers best ways to
market a product or service to other countries (Akaka, Vargo and Lusch, 2013). Each country
possess their own marketing traditions, mannerisms and culture and for expanding business
globally business organisation must get families with the environment to get success. Through
globalisation of business international brand image is created and helps organisations to expand.
To understand the concept of international marketing in this project a small organisation
4Com Plc is considered. This organisation was established in the year 1998 with a aim of
improving the communications services of the UK's SME market. Chairman of the company is
Daron Hutt. 4Com Plc is providing services like phone system, business mobiles, broadband and
internet, software and applications and wants to expand its business into international market.
Currently this company is serving UK market to serve various business organisation with best
communication services.
TASK 1
P1 Scope and key concepts of international marketing
International marketing is the process of focusing on the resources of the globe and
objectives of the organisations on global business opportunities and threats. Expanding a
business at global level provides huge scope to business organisations that is defined as-
Importance in the Global Arena: All the activities performed by business organisation
to expand business at international level helps in enhancing development of other countries when
product is of high technology. When two nations joins their hands to expand business it
ultimately leads to peace among nations (Berthon and et. al., 2012). International marketing
increases number of opportunities for businesses to expand and grow. When manufacturing in a
company becomes cost effective then it can become a hub for exports for example china.
Imports: This is one of the easiest form of international marketing in which a company
imports goods form international market and selling them to the domestic market. Through this
1

4Com Plc can hire services or order raw material form other country which is cost effective.
Imports enhancing the scope of expanding the international marketing as it leads to providing
more and more facilities to business to expand at international level.
Export: Through this form of international marketing goods and services produced
domestically can be served at international level (Bertoli, 2013). Using this system 4Com Plc
while introducing its expansion plan can serve its products to other countries where expansion is
made. Exports provides a scope of expanding business at international level as ease in expansion
and supporting form government in compliance with legal process leads to enhance more and
more operations.
Contractual Agreements: When companies expand globally its market expands and
consumer base expands that gives high amount of profits. 4Com Plc can grow exponentially by
getting into contractual agreements with several other partners overseas.
The marketing concepts helps businesses by providing then an idea needs of the potential
consumers and what efforts needs to satisfy them. Some international marketing concepts are as-
Orientation to foreign trade: Businesses when provided with an opportunity to expand
at international level then it leads to generation of foreign trade for the nation. Generation of
more foreign exchange in the country will help in growth. 4Com Plc will contribute to bring
more foreign trade in UK. When more and more foreign is brought to the domestic market then it
will eventually leads to growth and development of economy and this will leads to generate more
and more profits.
Sales in the foreign market: Internation marketing helps businesses to deal with
different culture and through complying with all the requirements of international market sales of
the company goes high at global level. Overall sales and production level of the organisation will
increase and financial condition will be improved.
Orientation to international marketing: As per orientation of international marketing
different products in order to satisfy the consumers of different countries are produces (Cadogan,
2012). Marketing mix concept will be used by 4Com Plc to understand the new market and
consumers and serving them in the best manner.
P2 Rationale for it to want to market internationally and various routes to market
Decision of 4Com Plc to expand globally is rational because expanding at internation
level provides number of opportunities and benefits that are not available in domestic market.
2

Business of 4Com Plc when expanded to international market then it will provide a new market
with large number of consumers that are unsatisfied. Serving them with goods and services as
per their desire will help in earning more and more profits. Together with this when a business
existed at international level then it is good for creating a brand image and attracting more and
more consumers. Businesses can attract more investors in foreign country to make investment in
their business and funds can be generated. Business organisations while operating at national
level possess several reasons to go internationally and some of them for 4Com Plc are as
follows-
 Grabbing large market size is one of the key reasons why business organisations go at
global level as more and more consumer base is created.
 Expansing business organisations to different markets gives access to new markets and
this also lead to enhance profit potential of 4Com Plc.
 Growth rate of business with expansion to international level goes high and this leads to
more and more profits and expansion scope to businesses.
Various market routes that can be adopted by 4Com Plc to expand their business are as-
Franchising: In this form of expansion business that wants to expand provides rights to
already existing business organisation in the target company to operate in their name. A fees is
paid to use the brand name on yearly basis. Existing business model used in businesses is
implemented in franchising. This route is preferred because it is easy to expand business through
franchising (Cavusgil and Cavusgil, 2012). Consideration must be provided that to whom
franchise is given must a firm brand recognisance in the target market.
Direct exporting: This is the most common route used for expanding business at
international level. In this method sales are made directly to the market where business is trying
to break into. Goods that are served by the company are made available in the stores of the
targeted company. Agents and distributors are made in the targeted market so that products can
be made available in international markets.
Joint Venture: In this two business organisation make a partnership to complete a
project with defined investment and profit sharing ratio. Both the organisations possess separate
entity and joined their hands to attain common object. Through this process a particular project is
accomplished and risk and return will be shared appropriately among the parties involved in the
venture.
3

For 4Com Plc franchising option will be suitable for expanding in the targeted market. As
existing business model of the company can be used to expand business at international market.
It will leads to minimise the risk certainty in the organisation when expanded to international
market. Together with this it will leads to develop management system which is well organised
and tested for improved performance.
M1 Opportunities and challenges that marketing internationally
Opportunities and challenges that are available to 4Com Plc to market internationally are as-
Opportunities Challenges
 When business of 4Com Plc is
expanded in countries where AI and
automation is highly effective then it
will help organisation to adopt new
technologies.
 Businesses when expanded at
interactional markets then knowledge
regarding market to 4Com Plc will
enhance.
 It helps to attracts new talents residing
in different countries who can become
an asset for growth and development of
4Com Plc.
 Brexit serves as a challenge for all the
European organisation as it leads to
uncertain trade situations.
 Marketing works best when pared with
local knowledge and cultural difference
is a challenge for 4Com Plc to expand
in different nations.
 Global economy plays important role in
making expansion decision and
political challenges after Brexit needs
to be considered to make expansion.
TASK 2
P3 Key criteria and selection process
Entering into new international environment is attractive and brings number of benefits
and opportunities for an organisation. Results for internation expansion become more productive
when a effective market is identified for initiating the expansion plan. It is one of the most
complex decision to identify best option for expansion that bring more profits by serving large
number of consumer group (Chung, Lu Wang and Huang, 2012). To determine favourable
market a process that needs to be undertaken by 4Com Plc to take expansion decision. This
market analysis will help 4Com Plc to study the target market and identify opportunities, threats
4

and level of competition available in the desired market. The selection process of the targeted
market is as follows-
Research for consumers and competition: Researching market on multiple levels will
help to evaluate the demand whether it is real or in illusions. Through this evaluation it will
become clear that expanding in the potential will be worthwhile for the company or not.
Identifying the consumer segment that will be served and knowing strengths and weakness of
competitors in Indian market will help to take correct decision.
High-level of the market: Analysing markets for consumers and competitors is not
enough to make correct decision. In order to obtain border understanding of the market as a
whole and potential success in the market other factors needs to be analysed. Analysis for market
size, number of buyers, barriers to entry, bargaining power of supplier and value chain in the
industry is identified (Evers, Andersson and Hannibal, 2012). Through this market research
overall picture of the condition will become clear.
Explore adjacent opportunities: Expansion plan can not be initiated in one day and for
this researchers analysed the growth and performance of various corporations. This analysis will
help in identifying that companies with most suitable growth has used a systematic, disciplined
approach to expand business to international boundaries. Finding adjacent opportunities other
then Indian market can be a winning strategy.
Understand business environment factors: Overall business environment have a
profound impact on the companies performance and the way industry operates. Business
environmental factors such as technological development, government regulations, economic
indicators, trade policies plays important role to assess business environment. 4Com Plc needs to
consider all these factors while expanding business in India (Fletcher and Crawford, 2013).
Find the market research you need fast: Gathering all the required information can be
time consuming so to make it quick various data available through renounced organisations can
be used to produce information.
Considering all the factors on the basis of market competition, market size, number of
consumers, government regulations, technological development it is advisable to expand
business in Indian market.
5

Selection process which helps business organisations to make decision in relation to
selecting the target market in which expansion will be made. The selection process for 4Com Plc
will starts as follows-
Segmentation: It is the process through which total market is divided into small groups
where demand is made for that products and services offered by business organisation. Business
organisations like 4Com Plc which is planning for expansion will design a market mix that will
match with the required needs and wants.
Selecting target consumer group: 4com plc is providing services in relation to
telecommunication services in the commercial sector and for this a country where commercial
sector is at growing will be appropriate for the organisation. Target market for the organisation
on the basis of their services is Indian market where commercial sector is at growing stage.
Selecting appropriate country for Expansion: In the present case all the pros and cons
for expansion to Indian market will be accessed in complete manner. This will help in making an
appropriate judgement for expansion.
P4 Various market entry strategies, including advantages and disadvantages
Market entry strategy is an essential part of entering into new markets as it provides a
planned distribution and delivery method of goods or services to a new target market (MARKET
ENTRY STRATEGIES, 2018). A effective marketing strategy helps in establishment and
management of contracts in a foreign country. It is important for 4Com Plc to have a market
entry strategy as it helps in getting clarity regarding aim for expansion and method for achieving
the same while entering into new market. Some of the marketing entry strategies available to
4Com Plc is defined as below-
Buying a Company: In some markets buying an already existing company is the most
suitable entry strategy. For this a suitable company that matches criteria for expansion is selected
(Leonidou and et. al., 2010). It is one of the costly form of expansion and determining the true
value of the company in foreign market is difficult task.
Advantages-
 Experienced workforce already working in the business environment.
 Business is already established and well settled and become easy to run. Current market reputation of the purchased company is used for the benefit of expansion
plan.
6

Disadvantages-
 It becomes difficult to change existing business model of purchased company.
 Compliance with government regulations and political changes make it difficult to work.
 Personal relationship of business and consumers can not be bought with purchase of
company (Advantages and disadvantages of buying a business, 2018).
Direct Exporting: In this process sales are made directly into the market using own
resources or through appointing distributes. Companies that have a established sales programme
sometimes move towards expansion through direct exporting. Agents and businesses works
together so that goals can be achieved in a well defined manner.
Advantages-
 Expansion through direct exporting is cost effective.
 Knowledge of the foreign market is experienced without large investment.
 Control on goods and services in foreign market is of the main organisation. Helps in interacting with consumers directly and building a healthy relationship
(Meissner, 2012).
Disadvantages-
 It leads to failure when agent become ineffective to perform task.
 It becomes a complex process when several feedbacks and comments form consumers are
received.
 It do not help in establish strong consumer base and more efforts needs to be made for the
same.
Joint venture: It is a particular form of partnership that is established to undertake a
specified business project (Paliwoda and Thomas, 2013). Two organisations agree to work
together in a particular market and project to maximise profits and minimise risk.
Advantages-
 Through this risk is shared among two organisations.
 Provides opportunities to take advantage expertise of one organisation in a particular
field. More funds and knowledge can be involved to complete a project.
Disadvantages-
 Conflicts of interest among organisations may leads to failure of project.
7

 Poor coordination among organisations may leads to delay in completion of projects.
Licensing: In this process a company authorises another company by issuing a license to
temporarily access to its intellectual property rights. This is one of the faster ways for expanding
business at international markets. Their are certain advantages and disadvantages attached with
licensing of a business. Some of them are explained as follows-
Advantages-
 It creates opportunity for business for generating some amount of passive income. It provides an opportunity to entering into international market in easy manner.
Disadvantage-
 Dependency on the licensor has increased fo0r success of business in international
market.
 It creates added competition in the domestic market by expanding international
businesses.
M2 Market evaluation criteria and entry strategies and make recommendations
Analysing all the opportunities for expansion a destination which provides more chances
for success and minimum risk will be considered most suitable. Their are various options
available to make expansion decision such as buying a business, direct exporting and joint
venture most suitable among them will be selected. Evaluating all the options on the basis of
goals and objectives of 4Com Plc for expansion and most suitable will be selected. It is
recommended that business strategies that is suitable and helps in attaining objective in specified
time is preferred over others for enhancing chances of success (Papadopoulos and Heslop, 2014).
D1 Evaluation of international market
International marketing concept will help 4Com Plc organisation to understand several
business markets where expansion is planned. As in Indian market consumers are highly
influenced through pricing this scenario needs to be considered while making expansion
decision. When business is expanded to other country like Canada then consumers of the
products and services offered by 4Com Plc is concentrated on quality. While serving large
number of targeted consumers in Canada quality of the product must be considered. Using
international marketing concept organisational strategies will be designed in such manner that
success is achieved with profit maximisation.
8

TASK 3
P5 Overview of key arguments in the global versus local debate
Marketing plan is important for any business whether globally or local that helps to run a
business successfully by following strategies. The nature of any business is different which is
important to understand by managers and follow the rules and legislations. It is duty of
management to analyses the global and local presence of an business organisation and prepare
the solid plans to attain the business objectives. 4 Com Plc is providing network services at local
and global level by understanding the customer's demand (Ringle, Sarstedt and Straub, 2012).
The management of such organisation make different plans for local and global level with the
help of debate, which increases the productivity. Local debate refers as local marketing plans
which helps to attracts customers in same nation and getting services. Whereas global debate
refers as marketing plan which is prepared by managers for the purpose of developing their
products and services globally which helps in development of country. The difference between
local and global debate are defined as:
Global Local
It is related with internation business activities
which is build by managers in order to run
their business outside the country or
international level.
Local debates is related with local marketing
business plan which helps attracts customer
locally or in residential country.
It helps to create various opportunities which
increases productivity and profitability.
Moreover, there are many competitors who
have attractive marketing plans to expand their
business.
It does not have many opportunities due to
having stability in marketing plan and
minimum competition.
The management of global area are generating
new trends and innovation by using different
trade policies. There exists high customer
relationship who gets better products.
In local market, there is low market trends and
high customer relationship which need to deal
for running a business.
In global debate, has wider scope that helps to In Local debate, has not wider scope due to
9

generate higher profits and outcome by using
marketing plans.
which firm is not able to generate higher
profits.
Here is need to have strong marketing plans as
well as different skills by comparing with other
organisation as well as country that helps to
take further steps.
It involves local management skills and
marketing skills to run a business at local area.
From the given differences, it is clearly defined that local marketing plans are used to run
a business only at local area, where no advance skills and high investments are required. Where
as Global debate consider different types of marketing plans and management skills to run a
business and for expansion by offering better quality of products and services. For instance, 4
Com Plc's management set business at local and global level by using attractive marketing plans
which helps to attain business objectives (Samiee and Chabowski, 2012).
Global versus Local debate
In Global debate business concern talks with all people who are living inside and outside
the regions in order to sale their products and services. It contains all letters from both query and
target sequence.
In Local debate business concern talks and share ideas with those people who lives in
their residence country and sale products and services in order to make profits. This is align with
substring of the query sequence to a substring of the target sequence.
How the marketing mix differs in various markets
Marketing mix is the combination of different element which are important to run a
business successfully. It involves product, price, place and promotion which helps to deal with
other companies and run their business successfully. All these factors are different from
international market such as to run business in international market there is need to understand
the culture, taste, interest, religion, buying habits and background of other country which helps to
run business successfully. For instance, 4 Com Plc run their business in international market by
understand the price, product, place and promotion which helps to attract employees and increase
sale. Management of such organisation compare with other international company who provides
same services at different rate and place by using different promotional activities which helps to
10