International Marketing Strategies for Business Expansion

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INTERNATIONAL MARKETING

Table of Contents
INTRODUCTION........................................................................................................................1
LO1........................................................................................................................................... 2
P1 ANALYSE THE SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING..................2
P2 RATIONALE AND VARIOUS ROUTES TO ENTER IN A INTERNATIONAL MARKET...............4
M1 OPPORTUNITIES AND CHALLENGES IN INTERNATIONAL MARKET.................................6
LO2........................................................................................................................................... 7
P3 SELECTION PROCESS AND CRITERIA FOR INTERNATIONAL MARKET...............................7
P4 DIFFERENT STRATEGIES FOR ENTERING IN THE INTERNATIONAL MARKET WITH
ADVANTAGES AND DISADVANTAGES...................................................................................9
M2 MARKET EVALUATION AND STRATEGY FOR ENTERING IN INTERNATIONAL MARKET. 11
LO3......................................................................................................................................... 12
P5 OVERVIEW OF LOCAL AND GLOBAL MARKET................................................................12
P6 FOUR P’S IN INTERNATIONAL MARKET..........................................................................13
M3 CIRCUMSTANCES FOR ADOPTING LOCAL OR GLOBAL APPROACH...............................15
M4 MARKETING MIX IN INTERNATIONAL MARKET............................................................16
LO4......................................................................................................................................... 17
P7 DIFFERENT MARKETING APPROACHES FOR ENTERING IN THE INTERNATIONAL MARKET
........................................................................................................................................... 17
P8 LOCAL AND INTERNATIONAL ORIENTATION AND WAYS TO ASSESS COMPETITORS.....18
M5 MARKETING APPROACHES AND COMPETITOR ANALYSIS............................................19
CONCLUSION.......................................................................................................................... 20
REFERENCES........................................................................................................................... 21
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INTRODUCTION
International marketing is defined as the business activity that helps the company in the
plan, promote, and price the product and services to the customer in more than one
country. International marketing is responsible for doing the business in more than one
country and helps in the expansion of the business as marketing is the process of buying and
selling of goods and services in between producer and consumer. The Berkeley Partnership
is a consultancy company founded in 1990 and is based in London and New York UK. The
company needs to expand its business internationally with their services. For the expansion
of the business, the company needs to analyse the international market with proper
planning and strategies. In this assignment, the learner comes to know about the strategies,
approaches and planning need for expansion of the business in the international market.
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LO1
P1 ANALYSE THE SCOPE AND KEY CONCEPTS OF INTERNATIONAL MARKETING
The scope is the opportunities for the expansion of the business. The international market
has lots of scopes for the companies to expand globally. The international market has lots of
scopes that help the company in the development and growth of the business. The Berkeley
is a management consultancy company that is responsible for providing consultancy
services to other small and medium-sized companies for the expansion of the business. The
company wants to expand the business globally with the help of proper planning and
analysis of the market that leads the company towards profit (Armstrong et al., 2015).
Figure 1: The Berkeley Partnership (GD, 2019)
Scope in the global market
Peace of nation
International marketing includes the buying and selling of the goods and services globally.
The marketing gives an opportunity to the companies as well as to the employee to interact
with other once that helps in understanding each other that plays an important role in
maintaining peace among the countries. The Berkeley companies have a great scope in
going global with the services that help the company in interaction with other countries and
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give an opportunity to understand the other company that plays an important role in
maintaining the peace between the nation (Wood, 2016).
Import
Importing is the process in which the company gets the goods and services from other
country and sell them in the local market. The Berkeley needs to import better services and
ideas from other country and then needs to implement the ideas and services for the
growth of local companies (Egging and Holz, 2016).
Export
Export is the selling of services to another country that is then introduced in the global
market. Berkeley Company needs to export the services and ideas to another country that
help the Berkeley Company in expanding the business globally by the introduction of the
services in the global market (Adekola and Sergi, 2016).
Contractual agreement
A contractual agreement is doing the business on the basis of a contract with other
partners. The Berkeley Company needs to do a contractual agreement with other foreign
companies that help in the expansion of the business globally (Avdjiev et al., 2018).
Joint venture
Joint Venturing is the process of combining two international companies for the
establishment of a firm that helps both the company in expanding globally. The Berkeley
Company needs to do JV with an international company that provides a scope in the
expansion of the business in the international market (Yan and Luo, 2016).
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P2 RATIONALE AND VARIOUS ROUTES TO ENTER IN A INTERNATIONAL MARKET
RATIONALE FOR INTERNATIONAL MARKETING
International marketing is one of the major aspects of the development and growth of the
business globally. There are many reasons for which the company need to go global that
helps the company in providing better services to the clients (Katsikeas et al., 2016).
Economy
Importuning and exporting of the goods and services not only helps the company in the
expansion of the business but also helps the country in maintaining the economy of the
market. The Berkeley Partnership Company has to go global that help the company in
maintaining the economic factor of the company (Mandrinos et al., 2015).
Profit
More international business leads to more import and export of the business that helps the
company in gaining more profit. Profit relates to the popularity of the business, more
earning and growth of the business. The Berkeley Company has to expand the business
globally that will help the company in earning a profit (Katsikeas et al., 2016).
Competition
The international market is full of competition and competitors. Entering the global market
helps the company is growing rapidly to maintain competition with its competitors. The
Berkeley Company needs to enter in the market of competition with proper planning that
helps the company in competing with other competitors (Mandrinos et al., 2015).
Innovation
Entering the new market provides an opportunity to gain knowledge about new innovation
and technology that helps the company in the growth of the business. Berkeley Company
needs to enter in the international market for gaining the knowledge of new technologies
and innovation that contribute to the company is going more global (Katsikeas et al., 2016).
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ROUTES
Routes are the ways that a company uses for entering the global market. There are various
routes that a company can use for entry in the international market. The Berkeley Company
need to analyse the route which is best suited for the entry in the global market and helps in
gaining profit (Buckley et al., 2016).
Direct Exporting
Direct exporting is the easiest way for entering the global market. In this strategy, the
company directly enters the market and the distributors and the agents play the role of a
partner for the company. The Berkeley Company needs to export the services directly to the
other international companies with the help of agents and distributors that plays an
important role in the expansion of the business globally (Adekola and Sergi, 2016).
Partnership
The partnership is the way in which the company search for a partner in the global market
that helps in the expansion of the business globally. The Berkeley Partnership company has
to coordinate with the other international company for going global (Buckley et al., 2016).
Joint Venture
Joint Venturing is the setup of a new firm with the merging of two companies. The Berkeley
Company needs to use this route for entering in the market as it is an easy way and helps in
maintaining the international firm with the help of venture (Yan and Luo, 2016).
Licensing
Licensing is the legal process of entering the global market. In this process, the company
takes legal permission from the country to do business internationally. The Berkeley
Company has to take a license from the country in which the company needs to expand the
business (Buckley et al., 2016).
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M1 OPPORTUNITIES AND CHALLENGES IN INTERNATIONAL MARKET
OPPORTUNITIES IN INTERNATIONAL MARKET
Opportunity helps a company in getting advantage from the business. Opportunities give a
chance to the company in exploring the business with proper strategies and planning. The
international market has various opportunities for the company that helps the company in
the expansion of the business (Nowiński and Rialp, 2016).
Position
Use of the opportunity for entering the global market helps the company in making the
position of the company in the market as well as in making the reputation of the country.
The Berkeley Company has a great opportunity to work for the business and for the nation
(Vernon, 2017).
Expand business
Going global no doubt helps in the expansion of the business that plays an important role in
the growth of the organisation. The Berkeley Company needs to expand the business that
will help the company in earning a profit (Vernon, 2017).
Culture
Global marketing provides a great opportunity in understanding the culture of the society of
other country and market. The Berkeley Company needs to interact with more and more
countries that provide knowledge about the culture of the international market that helps in
the growth of the business (Nowiński and Rialp, 2016).
CHALLENGES IN INTERNATIONAL MARKET
Challenges are the issues and problems faced by the company in the international market.
The Berkeley Company need to face the challenges with proper planning and strategies that
help in overcoming the challenges and leads the company towards success. The challenges
include the Consumer behaviour, cultural issues, and laws of the country, market
environment, and selection of the correct market (Buckley et al., 2016).
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LO2
P3 SELECTION PROCESS AND CRITERIA FOR INTERNATIONAL MARKET
Entering in the global market is necessary for the expansion of the business globally but
choosing a correct strategy for entering the market is important for the success of the
business. It is an important aspect for every organisation to select the correct process for
entering the international market with proper analysis of the market. The Berkeley
Partnership company has to analyse the market and after analysis, the company needs to
select a better process for the success of the business (Armstrong et al., 2015).
Objective
Every market has some objective that helps in achieving the goal. The company needs to
evaluate the objective of the market that what is the purpose of the market. It is necessary
for the Berkeley Company to evaluate the goals and objectives of the markets as well as of
the company for the success of the business (Gilpin, 2016).
Parameter
Parameters are the factor that the company needs to an emphasis on for evaluation. The
parameters are the resources for the organisation, the situation of the market, government
policies, competition in the market, and the environment. The Berkeley Company needs to
evaluate all the parameters properly for the evaluation of the market that helps in the
selection of better market (Armstrong et al., 2015).
Screening
Screening is the selection and rejection of the market on the basis of need and priority. In
this process, the company select the markets that are beneficial for the business and reject
those which are not of their business. The Berkeley Company needs to do proper screening
of the market on the basis of priority and profit. The company has to select those markets
that are related to the consultancy sector and leads the company towards success (Ciriello
et al., 2016).
Evaluation
After the screening of the market, the next step is the final selection of the market. In this
process, the company evaluate and consider all the factors of all the market to bring out
best out of them. The Berkeley Company has to evaluate the selected market on the basis of
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profit, environment, culture that helps in bringing out the best market out of them and
helps in the expansion of the market (Gilpin, 2016).
Testing
After the selection of the market, the next step is testing the product in the market for
checking that the product is beneficial for the market or not. The success of the business
depends on the popularity of the product. The Berkeley Company needs to introduce a
sample product for checking the environment of the market regarding the product (Ciriello
et al., 2016).
Production
After the analysis of the market in favour of the company, the company needs to do mass
production for gaining profit in the business. The Berkeley Company has to introduce the
services within the market that helps the company in gaining profit as well as in the
expansion of the market (Gilpin, 2016).
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P4 DIFFERENT STRATEGIES FOR ENTERING IN THE INTERNATIONAL MARKET WITH
ADVANTAGES AND DISADVANTAGES
Entering in the international market is important for the expansion of the business and
every organisation needs to adopt a proper strategy for entering in the market with the help
of knowing the advantages and disadvantages of the strategy. The Berkeley needs to do an
emphasis on the different market entering strategies that help in proper setup of business
globally (Hitt et al., 2016).
Exporting
Exporting refers to the direct selling of goods and services in the international market. In
this strategy, the agents and distributors play the role of partner and help the company in
gaining profit from the market. African exports are one of the best examples of direct
exporting. Berkeley Company can use the strategy for entering in the market as this strategy
has the advantage that the company does not need to distribute overall profit of the
business with other partner and has the disadvantage as if the product is not liked by the
consumer this leads the business towards loss (Adekola and Sergi, 2016).
Partnership
In this strategy, the company needs a partner for doing business internationally. The
Berkeley Company has to search for a partner in another country that helps in the success of
the business with the help of doing a partnership. The advantage of this strategy is faster
growth and high capital. There is also a disadvantage of this strategy is that the company
needs to share the profit with the partner. Apple and IBM is the best example of partnership
(Buckley et al., 2016).
Joint venture
Joint Venture is the strategy in which the company merges with another company for setup
of a new firm that helps in expanding the business globally. Kellogg Company joined with
Wilmar is the best example of a joint venture. The advantage of the Joint ventures is that
there is no conflict between the companies regarding the profit and success of the business.
The strategy has the disadvantage that the control of the firm is in the hand of both the firm
that leads to fraud due to some conflicts (Yan and Luo, 2016).
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Licensing
Licensing is the legal process for doing business globally. In this process, the company legally
take permission of the country for entering the global market. HIT Entertainment is an
example of a licensing company in the international market. The Berkeley Company has to
take legal permission of the country for entering the international market. The advantage of
the licensing is that no one can consider the company fraud n that builds the trust of the
customer. The disadvantage of licensing is that it bounds the company and reduces the level
of flexibility (Chang et al., 2016).
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