International Marketing Report: Entry Strategies and Market Selection

This report provides a comprehensive overview of international marketing, encompassing its scope, key concepts, and the rationale behind businesses expanding into global markets. It explores crucial aspects such as cultural awareness, international trade, and market trends, while also delving into the macro and micro environments. The report examines international market selection criteria and the market entry process, highlighting various strategies like exporting and foreign direct investment. Furthermore, it analyzes the advantages and disadvantages of each entry strategy. The report uses H&M as a case study to illustrate the application of these concepts in a real-world context, offering insights into how businesses can organize and evaluate their international marketing efforts to remain competitive.

International Marketing

Table of Contents
International Marketing...................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Scope of International Marketing............................................................................................3
2. Key Concepts in International Marketing:..............................................................................6
3. Rationale (reasons) for a business to go to international markets...........................................8
4. Various routes to entry...........................................................................................................10
LO2................................................................................................................................................11
1. Key International market selection criteria............................................................................11
2. International market selection process...................................................................................11
3. Market entry strategies..........................................................................................................12
2. Discuss the advantages and disadvantages of each entry strategy........................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
International marketing refers to the application related to the principles of marketing
helps to satisfy wider needs and choices of differ people resides across the national boundaries
(Alnawas and Hemsley-Brown, (2019). It undertakes the varied marketing efforts in more than
one nation in order to attain opportunities in positive manner known as global marketing. Global
marketing proved beneficial in designing the marketing mix which includes product, price, place
and promotions by customizing as per the preferences of differ kind of individuals in order to
remain competitive in marketplace. Respective report is based on the H&M which is an Swedish
multinational organization clothing retail known for fast fashion clothing. Respective report is
based on the understanding of the way marketing contributes in business strategy in international
context. Further it includes the entry modes for international marketplace by defining their
success factors potentially for respective organization. Finally it includes the way to organize and
evaluate international marketing efforts in terms of multinational, global, transitional and meta
national level in order to remain competitive in marketplace.
MAIN BODY
International marketing:
In the words of Albaum and Peterson, international marketing is the bundle of various
actions or activities that related with products and services in both direct and indirect manner
cross national borders.
In the words of Jain international marketing is cross the national boundaries for providing
satisfaction to consumers in regards of products and services.
L01
1. Scope of International Marketing
International marketing is very much important not only for organization but also plays key role
in economy by gaining employment opportunities for people positively (Collinson and Liu,

(2019). In context of H&M they operate at international level by acknowledging its scope in
wider organizational context that are as follows:
Promotion of peace among nations: Global expansion proved beneficial not only for
organization but also to each one that attach with it. All the major activities associated with the
business such as development, production and marketing majorly in context of high tech
products. in addition to organizations interact with the people helps from all countries to meet
face to face important part of interaction with employees from various nations as part of
recreation and commerce. All kinds of interaction leads towards mutual gain with business
relationships and personal relationship that get in business outcomes in potential manner.
Reduce risk of business failure by serving several foreign markets: scope of international
marketing is very much important as it enhance the global markets opening for businesses
(Gkarane And et.al., 2019). In that series the time of manufacturing of products in a country is
very much cost effective and nation gradually become the hub all kinds of exports. All activities
lessen down risk of failure as organization operates in many nations simultaneously. In context
of H&M which is a market leader by analysing needs and wants of consumers can be able to
enter into global market place as it operates in 74 countries with 5000 stores at world wide.
Growth opportunities majorly in emerging economies: At world wide, multinational
strategies provides growth opportunities in emerging economies. As it is studied that emerging
economies such as BRICS and MINT faces problem of unemployment and recession in economy
that impact on their level of profitability. So operations at international level of H&M contributes
in respective economies positively.
It promotes the utilization of talents from foreign countries: it is very much important for an
organization to recruit one of best personnel within the organization by finding talent from
foreign nation proved beneficial for organization in obtaining desirable outcomes.
It provides opportunities to reduce operational costs by producing and sourcing from low
cost producing countries: It is proved very much beneficial for organization by
internationalization to align the production and distribution in the low cost country. It helps to
reduce cost potentially to provide one of best pricing to the end users. in that regards it is very
important for an organization to reap important outcomes from foreign nations to remain
competitive in marketplace.

It provides opportunities for the promotion of bilateral agreements: international marketing
and relations proved very much potential for an organization. it helps in building bilateral
agreements that assist in enlarge business opportunities by finding out growth and development
in positive manner by using it organization can be able to create union of people at international
level that work for self interest of one another.
Increase profitability: An organization that trades products with other external countries is
reaping the benefits of a high tariff activity because residential advertising is not as profitable as
a global presentation. The misfortune perpetrated by an organization in local advertising can be
compensated by the advantage obtained by the rates in the universal promotion. Remote trade
can be achieved by exporting goods to external countries. Consequently, the gain obtained can be
used for the introduction of basic goods, new hardware, and innovation and so on. This would
also encourage large-scale exchanges in the future.
Building global brand image: While your unique meaning in identifying around the world may
vary as indicated by your stated goals, the simplest way to clarify this term is how organizations.
a system used to define their features and character in an endless scene. Logos from around the
world take their USP and look for situations that they can thrive outside of their immediate
country.
The most important thing to understand is that there is something else to celebrate around
the world besides creating a .com site and ensuring the transport of articles to different parts of
the world. Each area goes with their wonderful companies, the desires and desires of their
customers.
Benefit of economies of scale: Economies of scale are points of attention to costs that can occur
when an organization expands the size of its production and becomes progressively productive,
producing a reduced unit cost. This is because the cost of creation (calculation of fixed and
variable costs) is spread over several production units.
Economies of scale give larger organizations a bigger hand, the greater the business, the lower
the cost per unit.

2. Key Concepts in International Marketing:
The concepts in international marketing play very much important role, here are the some
important concepts are as follows:
Cultural awareness: While organizations deals in varies nations they encounter different culture
in that regards it is very potential to analyze or evaluate culture of specified country in order to
gain important insights (Mavragani, Nikolaidou and Theodoraki, 2019). In context of H&M, they
operates in almost all countries of the world and resides differ culture in terms of working,
expenditure of consumers, dressing patterns and many more. With the help of researchers
organization demonstrates taste and preferences of consumers in order to remain competitive in
marketplace.
International trade: International trade is the exchange of capital, goods and services across
borders or international territories because there is a need or lack of goods or services. In most
countries, this trade makes up a large proportion of gross domestic product (GDP).
Market trends: It is very much potential for an organization to acknowledge about trends
prevails in specified country on which they aimed to serve. In context of H&M they by
collecting knowledge regarding trends in market place in terms of fashion choices able to
provide one of best products and services to end users.
The global macro environment: Macro environment is very much important for an
organization as it helps to operate business activities in the foreign marketplace. before operating
in the international market it is very much potential for an organization to collect necessary
knowledge and information about macro environment factors such as political, social, economic
and many more. Respective factors helps in build strategies and tactics in order to remain
competitive in marketplace.
The global micro environment: while operating in the international sphere organization such as
H&M needs to understand the working practices and culture of specified nation that helps to
procure organisational goals and objectives in proper manner. by conducting the research
organization can collect potential data in order to reach at desirable outcomes in positive manner.
Consumer behavior: for an organization it is crucial to collect potential kind of knowledge and
information regarding consumers and their purchasing behaviour. Respective concept of

international marketing helps in serving consumers in one of best and potential manner to
enlarge business opportunities. In context of H&M they by using STP Model position their
products as per demand of consumers.
International market selection: criteria and process: It is one of major concept of
international marketing that relies on choosing one of best market. To choose the same required
to evaluate various factors such as economic conditions, buying power of consumers, trends of
market and many other attributes. respective factors helps to organization in serving consumers
in one of best possible manner.
International market segmentation: STP model is very much important for an organization
that helps to allocate organisational products and services by collecting knowledge about
consumer choice and preferences. In context of H&M by using STP they can build products and
services as per their preferences.
Market Penetration strategies: Penetration of market is very important for organization and it
is important to remain always competitive in the marketplace. In context of H&M by choosing
market development organization can be able to enlarge business opportunities.
Standardization/ localization (Adaptation): while operating at international market it is very
potential for organization to bring standardization in their products and services. respective
attribute proved beneficial in enhancing the consumers experience in positive manner.
International Marketing Mix strategies: Respective strategies are very important for
organization to enlarge and for market organizational products and services into the wider
marketplace. It includes standardization, adaptation and gradual change in product.
International market entry routes: There are various methods by which an organization can
enter an outdoor market. Nobody advertises the corridor methodology for all global markets.
Direct trade may be the most accurate system in one market and in another it may be necessary
to initiate a joint effort and in another it is possible to license your convention. Some of the entry
routes are discussed below:
Export: Exporting is usually just a less rigorous approach to entering a universal market, so
most companies start their global expansion using this transition model. Trade offers products
and administrations in remote countries originating in the country of origin. The advantage of
this segregation approach is that organizations stay away from the costs of setting up businesses
in the new country. Companies, in any event, must have an approach to advertising and

advertising their items in the new country, which they usually do through legally binding
contracts with a neighborhood agency or buyer.
FDI: Foreign direct investment (FDI) is control investment in a company in one country with a
commodity located in another country. In this way it is recognized by a remote portfolio
company with a view to direct control. Profit in a remote company like FDI is seen by chance
which does not establish lasting interest. A permanent base price is established when a financial
specialist at any level acquires 10% of the democratic strength in a company.
The path to the remote direct enterprise is a matter of control. Control speaks of the
prospect of effectively monitoring and influencing the activities of a remote company. This is the
main feature of the separation between FDI and unsolved remote portfolio undertaking.
3. Rationale (reasons) for a business to go to international markets
It is very much important for an organization to deal at global level as it plays very much
important role in gaining profitability and sustainability of marketplace. Here are the rationale of
international market is as follows:
Business growth due to saturated domestic market: It is very much potential for an
organization to deal in the international marketplace as it provides benefit if organization faces
saturation of domestic market (McLeay, Lichy and Asaad, 2020). Sometimes, due to not
stabilize growth in domestic market some organization not able to gain potential advantages in
that case they aimed to operate in international market.
Increase sales: It has been studied that while an organization operates in the international
marketplac, they can be able to gain huge attention of people by promoting their products and
services at wider extent. By using promotional tools they can be able to acknowledge preferences
of consumers and serve them in best manner. in context of H&M they are one of most leading
organization as they in better manner able to understand consumer preferences.
Revenues and profits: International proved beneficial in gaining profitability and sustainability
as it provides large no. of consumers in the wider market.
To reap the cost benefit of economies of scale by producing and selling more: Economies of
scale proved very important for organization in providing cost effective products and services to
the end users. In context of H&M by collaborting with low cost manufacturing country
organization can obtain the respective benefit.

Benefits from low labor costs and corporate tax: while dealing with the country where labour
cost is comparatively low and taxes and other kind of regimes are comparatively less. Respective
factors directly proved beneficial for the former organization in gaining profitability and
sustainability in the business world.
Paying corporation tax can be more beneficial to entrepreneurs than paying individual
income tax and deducts family medical insurance company tax returns and ancillary benefits
including deferred pension plans and investment funds.
To capitalize on emerging markets (BRICS and MINT): Emerging markets is very much
important for an organization as it provides the wide market. Emerging economies operations
helps in low cost labour and cheap machinery that is very crucial to provide one of best pricing
to end users.
To capitalize on transition economies: Transition economies proved very much important for
internationalization as it gives markets that are hidden and lots of opportunities available in
respective spheres.
To exploit unique capabilities and core competences: while operating in international market
organization can be able to adopt the products that are not available in the domestic market. By
using respective abilities organization can be able to create distinctive image at wide level.
Take advantage of globalization: Globalization is very crucial for organization as it provides
the lot of consumers and competitive advantage that occupied by serving respective consumers
in one of best manner. in context of H&M by operating at global level it become one of most
leading organization.
Elimination of trade barriers: While operate at international level organization can be able to
eliminate all kinds of barriers that restrict its growth and development. In that regards expansion
of market from the domestic to international market is very essential.
Building global brand image and brand reputation: Organizations can try to shape or
organize their organization’s celebrations or items from multiple perspectives, including
promotion, media, informal, and engagement with your articles or administration. A lot of
thought and thought goes into celebrations, including naming objects, structuring logos, and
committing to uniform management throughout the industry. By moving on to the show after a
short time, your image - or your reputation - is framed by existing and existing messages.

4. Various routes to entry
There is no. of various routes an organization can adopt to operate at international marketplace in
order to optimize potential outcomes are as follows:
Exporting: Direct trade is legitimately selling in the market you chose using in your first
example. Several organizations, once they have established a commercial program, go to
managers and buyers to speak with them later on in that announcement.
Licensing: It is a relatively modern course in which a company exchanges the rights to use an
object or administration with another company. A particularly useful approach is if the license
buyer is a medium-sized piece on the market that needs to be accessed. Licenses can be for
promotion or creation.
Franchise: It is a consistent North American approach to rapid market development, but it is
building a foothold in different parts of the world. Highly diversified activities for companies
that have an iterative action plan (eg food outlets) that can effectively move to different markets.
Partnering: Partnering are almost unknown when entering areas of business outside and specific
parts of the world (e.g. Asia) that may be needed. Collaboration can bring a combination of
structures from the course of action of a basic co-promotion to a complex core consortium to be
assembled.
Joint venture: Joint efforts are a special type of organization that involves setting up a third
super free agency. The procedure is 1 + 1 = 3. Two groups allow cooperation in a particular
market, geographic or object, and make a third group accept this.
Buy a company: In some commercial sectors, purchasing a conventional neighborhood group
may be the most appropriate corridor method. This could be due to the fact that the group has
many pieces, they compete with you immediately or because of government directives, this is the
main alternative for your company to enter the market.
Franchising: Under this, figure organization offers permission to every other entity as the right
to do enterprise in a designated way. The franchisor presents guidelines which ought to be

accompanied by using franchisee. It also can be used wherein H&M can have tighter policies for
all its franchisees.
Joint Venture: It is another entry mode that will be beneficial for H&M in its business
expansion, there are some advantages and disadvantages of using such type of entry strategies
which has been define as below:
Advantages Disadvantages
(a) Business can gain new insights and
expertise.
(b) Exposure to better resources.
(c) It is for a short and period of time.
(d) Risks and costs are shared by both
the parties.
(a) Objectives are not clearly defined.
(b) No flexibility in authorisation and
Management.
(c) Encourage in balance in business
processes.
(d) Clashes between culture.
LO2
1. Key International market selection criteria
Market selection plays a crucial function at the world stage. Market selection is based on a
comprehensive assessment of the various products, with regard to certain excellently-defined
criteria, considering the money and goals of the firm. Below some criteria are mentioned that are
as follows:
International marketing objectives: The first step in the market selection process is to assess or
evaluate the institution's trade marketing goals. The industry chosen to serve a specific global
marketing objective does not necessarily want to be the better placed to achieving some other
global marketing goal (O'Brien, (2019). It is essential for H&M to choose the market in
accordance of their objective for which they want to select the market.
Parameters for selection: In order to evaluate and choose the markets properly, it is necessary
to correctly set the scope and criteria for the assessment. The various methods for the choice of
the industry are the funds of the firm, the global climate, the market situation, the level of
operations, governmental policies, etc.

Preliminary screening: The goal of the preliminary screening is to exclude non-potential
markets. The characteristics used for the preliminary inquiry may vary depending on the product.
However, metrics such as population growth, per capita revenue, economic environment,
infrastructure development variables and political circumstances are widely utilized. The above
organization H&M should eliminate those markets which are not as per their scope.
Short listing of markets: Preliminary screening allows the elimination of markets which are
clearly not considered at the outset. But after the preliminary test, a substantial amount of
markets will remain. They are also investigated with the aid of more details than was being used
in the preliminary screening level. H&M should also consider this criteria before selection of a
market.
2. International market selection process
For an organization before expanding into international marketplace it is very much
important to choose one of best selection process in order to gain potential outcomes that are as
follows:
Preliminary screening: It is very potential for organization to evaluate all parameters of
selection by choosing definite process that helps in choosing one of best market to operate
(Racela and Thoumrungroje, 2020). In respective stage organization evaluate all factors such as
political, social, economic factors of specified region so that better decisions should be taken.
Analysis and selection: After conducting preliminary screening organization need to analyze
and choose one of best market in which they enlarge their business opportunities. In respective
field organization access their potential buyers, suppliers and competitors in market so that they
can plan in most strategic way to remain competitive in marketplace. In context of H&M they
conduct through research and development regarding all subject matters mentioned above in
order to gain important insights potentially.
Test marketing: In respective field organization bring their product for small scale to test
consumers’ response in order to modify their decisions so that potential outcomes should be
obtained (Sahaf, 2019).
Commercial production: In respective stage organization after commercialization apply
product at large scale for all their potential consumers.