International Marketing: Scope, Strategies, and Apple Case Report

This report provides a comprehensive overview of international marketing, exploring its scope, concepts, and rationale for businesses to engage in global markets. It delves into the key differences between international and domestic marketing, highlighting the benefits such as improved economic conditions and enhanced foreign exchange rates, while also acknowledging the associated challenges. The report examines various routes to market entry, including import, export, licensing, and joint ventures, and analyzes the critical criteria and selection processes for entering international markets, considering both internal and external factors such as resource availability, market size, competition, and risk assessment. Furthermore, the report assesses market entry strategies, discussing their advantages and disadvantages. A case study of Apple is used to illustrate distribution approaches in international markets. The report also discusses the social and political conditions affecting international businesses, and the drivers for international marketing such as competition, technological advancements, and the need for business diversification and profit margin improvement.

Coursework
International Marketing
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INTRODUCTION
International marketing represents the performance of organization activities to plan, promote,
price, and direct flow of business products and services to customers in one nation to another
nation for earning profit. The basic difference between international and domestic marketing is
the more than one country. The main target of international marketing is earning or making profit
from one than more countries. International marketing is the best thing for earning profit but it
also creates various challenges for business. International marketing face barriers such as
competition, Government involvements, legal restrains, geographical and demographical
changes and also different customers behaviours (Ibeh, CricK and Etemad, 2019). International
business has various benefits such as it provides high standard of living, it is also improved the
business and industrial growth. With the help of international marketing countries economic
conditions also improve. With the help of international marketing foreign exchange rate is also
enhanced.
The report will discuss the scope and concepts of international marketing. It will also describe
the rationale for it to want to market internationally and describes routes to market. This study
will explain key criteria and selection process which is used for entering into international
market. There is vast difference in home and international orientation and ways for assessing the
market competitors and also outlining the implication of each approach. The report will also
analyse different market entry strategies with their advantages and dis- advantages. The study
will also discuss the distribution approaches of international market through case example of
Apple company.
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LO 1
Scope and concept of international marketing
International marketing is a procedure and an important function that includes several marketing
principles that are being used to satisfy different types of customers’ needs and preferences. The
main aim and purpose of marketing department is to satisfy customers by attracting them
towards buying company’s products and given them satisfactory services. In the context of client
company (Apple) it can be said that this company is mainly focuses on its marketing and invest
in it. There is a huge difference between local and international marketing. Some scope of
international marketing is described as below:
Peace among nation
International marketing and all activities involve in it increase engagement of different countries
(Hansen and et.al., 2016). People from different countries work together directly or indirectly
which improve their personal and professional relationship. It is the main reason of peace among
nations. There are some sectors whose products made in a particular country, sales team are in
different countries etc. It also allows opportunities to work in cross culture teams and to increase
resource and knowledge sharing among various countries of the world. For example: Mobile
phone companies and sectors whose manufactures is being done in China, Research and
development in London and sales teams are across the world. This collaboration improve relation
among them.
Open opportunities
The main importance and scope of international marketing is it increases several opportunities
for the business. Manufacturing a particular product in a country can be most effective and sell it
into international marketing help an organization in increasing revenue. There are some products
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which are not only preferred by the customers in local region but they are also in greater demand
globally. Thus, international marketing helps to enhance customers and profitability. For
example, huge amount of consumer goods which are sold globally is manufactured in China.
Market expansion:
By using any type and scope of international marketing like joint ventures, export, import, an
organization can expand its business. It is well known that international marketing opens up a
wide customer’s base that can help the company in achieving greater profit margin. By making
an effective use of social media platforms and online advertising, many companies are making
its international marketing more cost effective. It does not require to meet face to face with
customers because modern era of people prefer to buy products online via internet. So, it is
beneficial for both customers and companies.
There are some factors that influence the growth of international marketing involves:
Import
It is called the easiest and common form of international marketing in which a company can get
into. Most of the companies are now importing products from particular one and other countries
and then sell it to domestic market. It can be beneficial when there is a high demand in the
domestic market (Håkansson and Snehota, 2018).
Export
Export means to sell products to other countries where there is a high demand of products. By
selling products to international market, several companies are making money and expanding
their business. It is the way of generating revenue and making aware to more people about the
products and services.
Licensing: A licensing is another way of entering in the international market as it is a written
contract between 2 parties in which a property owner and a businessman permits another party to
use that business and property. This involves 2 parties such as: licensor and licensee. It is mainly
used for companies for the commercialization of technologies.
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Joint venture: A joint venture is a type of business arrangements in which 2 parties arrange and
makes an effective use of their resources with the main aim of accomplishing a common goal for
third party and completes a specific task. In this type, each party has responsibility of profits,
losses and cost associated with it.
There are other some factors and scope of international marketing because it is a vast topic and at
rising level. Strategic alliance, fully owned manufacturing is some types and scope. Some more
factors that affect organizations that operates in international market includes:
Social condition:
It includes several demographics such as trends, needs and status of people of the society. Social
environment differs from one country to another due to some changes in culture, values, ethics
and background. So, these changes and differences can affect and influence the growth of
international market.
Political condition:
The political environment also affects the environment of the international businesses. It is said
that better the political environment is the highest is the growth of the business. On the flip side,
political instability can decrease the growth of international business. Worst political condition
creates and become the reason of riots and also increase the chances and fear of terrorism. So, it
can also affect the growth of international business.
Rationale of market internationally along with various routs of marketing that an
organization can adopt
There are several companies on different sectors that are adopting the best rout of international
marketing and more investing in international marketing. Client company (Apple) also focusing
in marketing internationally. The main reason of selecting this topic is marketing is a broad term
that is increasing competition. With the help of this topic and analysis, competition level can be
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known. It can also be helpful in academic and professional level. There are several reasons and
drivers that forcing companies to market internationally. Some reasons and the main aim of
internal marketing of Apple described below:
Competition opportunities
The main reason and driver which forcing Apple company to expand their business and
international marketing is increasing competition. This industry is increasing day by day. There
are many new entrants are coming in this industry which is reducing the profit margin of existing
companies. For taking competitive advantages and being in the competition, the company
focusing on market internationally (Javalgi and La Toya, 2018).
Advanced technology
It is also called the main driver which is putting pressure on this and other companies to think
about international marketing. Increasing use of internet is making most of the companies to
think about international marketing, Internet banking, E-commerce and others are some example
that are on the rise due to advanced technology. People also prefer to buy products online via
internet and social media platform. It’s not possible for the company to provide products face to
face and directly to different countries of people. So, it is the best way and the main reason
Recruiting new talent:
Operating in international market give access to the company to make a diversified and skilled
pool within an organization. Employees are known as the main key of the success of a business
because they are responsible for accomplishing organizational goals by performing several
functions. By attracting different culture of employees who understand different languages can
be beneficial for an organization to connect with broader customers.
Diversifying the business:
The other main reason of Apple to operate in international market is to diversify its business. In
this, companies may have to face several problems because initially company take time to
introduce and make believe to people about their products. After making aware to people,
companies can expand and diversify its business by making its products more innovative and
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differ from others. Product diversification similarly insulates the company from the risks of
declining interest in a particular item.
Improving profit margins
The main aim of many companies to earn money and increase their sales. By distributing
products in additional and different countries this company can earn profit. When company
gives qualitative products then customers can pay more when they get value for that products.
This pricing strategy with providing satisfactory and qualitative products, company can earn
more profit. It can also accomplish its al pre-determined goals.
So, it can be said that all above discussed are some drivers and reasons that put pressure on
companies to operate in international market.
Opportunities and challenges of international marketing to Apple
In the context of this technology and mobile phone industry it can be said that the planning for
the arrival of 5g network can influence and affect Apple. It can increase the competition which is
the big threat and challenge for this company. On the other hand, Apple is better known for its
wise and visionary strategic thinking that has helped it overcome marketing and competitive
issues. It is also stated that after financial loss its strength of visionary thinking and
implementing effective strategies made it able to overcome that loss. So, it can be said that this
ability can provide its several opportunities in international market.
LO 2
Key criteria and selection process
Analysis of internal factors
Availability of resources
For making an effective decision in entering into the new market requires to have enough human
and financial resources. To analyse availability of resources is very important factor for the
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company. Due to lack of human or financial resources can create several problems for the
company and it may become the reason of failure of the business (Sharma and Majkgard, 2015).
International experience
If the company has a good knowledge and experience of operating business in international
market then it can take better decision.
This knowledge makes it easy for the company. So, it can be said that it is also the main factor.
Company’s purpose:
Company’s purpose and objectives is called the main internal factors. Different companies have
different purpose as some wants to attract customers, some wants to generate revenue and
some wants to increase their brand image. So, selection of the best mode can be defined by
the purpose and objectives of the firm.
Analysis of external factors:
Market size:
It is called the main factor which the company analyse while selecting and making decision
about type of market entry. Countries those have large market size help in justifying the mode of
entry with long term commitment.
Level of competition:
Existing players in the market and increasing competition due to new entrance in the market also
influence companies in the selection process. It is called the main reason and factor of auto
companies which wants to set up their business in India.
Level of risks:
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There are several types of risk which need to be considered by the company which involves:
political, economic and operational. Political instability of a particular company and relationship
of other companies with political party can affect the decision. Economic risk arises because of
volatility of exchange rates of the market in which the company wants to enter.
Market Selection Process: For an organization, it is important to select the best mode of
entering the new and international market if it wants to expand its business and grow in
international market. There are several ways and modes in entering the market. Different
companies adopt different ways of entering the market so, it can be said that their market
selection process differ from others. Some steps of market selection process are described as
below:
Country Identification: The first and important step in market selection process is the
selection and identification of the country in which company wants to enter. In this step,
company needs to consider the distance between its own stores and other countries store for
making itself beneficial in the terms of export.
Preliminary Screening: In this step, an organization needs to score, weight and nations
based on the micro environment factors like currency stability, level of domestic consumption,
awareness in people about products and services etc. There are several factors which need to be
considered by the company such as economic condition of the country, political
stability/instability etc.
In-depth Screening: In this step, company needs to consider all factors in a detailed
manner. In this step, company focus on local conditions along with micro environmental factors
such as: marketing research, prices, suppliers relationship, availability etc. The modes of
communicating with target customers, validity and adaptability of products etc.
Final Selection: It is the next step of final selection in which, company tries to match its
goals and all factors as whether they are in the favour of the company or not. Level of
competition in the market. So, it can be said that before making the final decision, final score and
weighting can be undertaken based upn the more focused criteria.
Direct Experience: It is the last step, in which company needs to travel a particular and
target nation in order to experience first hand the nation's culture and its business practices. In its
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experience, it can ascertain that in which ways the nation is similar and dissimilar tgo the
domestic market of the company.
Different market entry strategies along with advantages and disadvantages
There are several ways and strategies of entering in new and international market. The
selection of the entry in international market by the company is chosen to accord to its size and
scope. After considering advantages and disadvantages of each marketing strategies, the
company make decision of international market entry. Some strategies of international marketing
along with its advantages and disadvantages are described as follows:
Various market entry routes
Franchising
It is somehow typical process and strategy in which but now it is gaining traction in other parts
of the world. This strategy is good for those organizations who have repeatable business model
like food outlets. This type of outlets can easily be transferred into other markets. It can happen
only when a firm has a strong brand reputation that people from different countries can utilize it
easily (De Villa, Rajwani and Lawton, 2015).
Advantages & disadvantages
It has already a strong reputation by which franchisee to invest in marketing and promotion.
The main disadvantage of this strategy is bad performance of franchisee can affect franchise’s
growth of the business.
Joint venture
It is a type of partnership but has some differences from partnership. This type of business is
being managed by third independently company. In this type of strategy, 2 companies become
agree to work collaboratively in a particular market by creating a third company to undertake
risks. Example of Joint venture is Sony cell phones.
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Advantages & disadvantages
The main benefit is it gives access to better resources like technology.
Disadvantage is flexibility can be restricted in this type and clash of cultures.
Licensing
It is called the sophisticated arrangement in which an organization transfer its rights to use thei5r
products to another company with legal activities. It is beneficial when purchaser of licence has a
good brand image and large market share in a particular market in which licensing company
wants to enter.
Advantages & disadvantages
The benefit of this strategy is it reduces risk for both parties and creates new business
opportunities.
It is for the limited time and also creates dependency upon licensor which is the main limitation
of this strategy.
Direct exporting
Direct exporting means to sell products directly into the market and country which have been
chosen by the company. There are several companies who take help of distributors and agents to
make aware and introduce their products in the new market. The selection of agents and
distributors plays a vital role (Ravelomanana and et al., 2015).
Advantages & disadvantages
The main advantage of this strategy is it allows the company to identify potential
customers and can also entire transaction control.
Disadvantage of this strategy is it is time and cost consuming process as compare to others.
So, it can be recommended to apple that it should focus on direct exporting because there are
several advantages and the main benefit is it can identify its potential customers.
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Market Evaluation Criteria: Market evaluation is the important and somehow difficult task.
This is an important task because it helps the company in identifying overall attractiveness of the
market like its size, uniqueness to offer etc.
Entry Routes Recommendations: In the context of market routes and the way of entering in the
new and international market it can be recommended to the company that it should focus on
direct exporting and sell their products direct to the selected country and in the market. The main
reason of recommending this mode is it has some features as the company can identify its
potential customers and it decreases its cost because it sells directly to customers.
LO 3
An overview and difference between global and local marketing
There is a huge difference between a local and global marketing. These huge differences is the
main reason by which companies are focusing on global and international marketing. Some main
differences are discussed as follows:
In the debate about global and local there are some issues found in both. It includes requirement
of responsibility to serve abroad, feeling obligated to serve different nations. Some people
argued this view and said that there are several opportunities of operating in the new and
international market. Along with-it companies may have to face severity of problems like
making aware to people, attract them, investment etc.
In this context, global side and (Hakobyan, and McLaren, 2016) argued that experience and
enough resources in operating in international market can give several opportunities as well as
create meaningful improvements for the company. After listening this, (Marketing, 2015) argued
and said that volunteering with those in one’s community is a civic responsibility that must be
completed before one can travel abroad. While working locally, companies can sustain project
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