International Marketing Report: Amazon's Global Expansion Strategies

This report provides a comprehensive overview of international marketing, exploring key concepts, and the rationale for global expansion. It delves into market entry strategies, including direct exporting, licensing, and joint ventures, while also evaluating criteria for international market selection. The report examines the arguments for global versus local marketing approaches, analyzes product, price, promotion, and distribution strategies in different international situations, and compares ethnocentric and international orientations. The report uses the case study of Amazon to exemplify the discussed concepts and strategies, offering insights into how businesses can successfully navigate the complexities of international marketing to achieve sustainable growth and profitability in foreign markets. The report also discusses criteria for market selection, considering environmental and market analysis, competition analysis, distribution channels, and consumer demand to identify opportunities for international business expansion.

International
Marketing

EXECUTIVE SUMMARY
International marketing is refers to the utilisation of marketing principles to satisfy the
needs and wants of consumers from various international markets. Business organisation adopt
international marketing to create strong international presence. Market entry strategies, routes of
market entry, criteria for selection, market orientation and differing approaches to product, price,
promotion and distribution strategy are considered during global expansion to adopt effective
international marketing practices. This along with various arguments for global and local
marketing are provided in this report.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY .................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Scope and key concepts of international Marting.............................................................4
P2 Rationale for international marketing along with market routes.......................................5
TASK 2...................................................................................................................................7
P3 Evaluation of criteria considered during the selection of an international market ...........7
P4 Different strategies of market entry..................................................................................8
TASK 3............................................................................................................................................9
P5 Main arguments for global versus local ..........................................................................9
P6 Investigation of ways in which product, price, promotional and distribution approaches
differ in various international situations ..............................................................................10
TASK 4..........................................................................................................................................11
P7 Expatiation and analysis of international marketing approaches ..................................11
P8 Comparison of ethnocentric and international orientation and ways for competition
assessment ...........................................................................................................................12
CONCLUSION ............................................................................................................................13
REFRENCES ................................................................................................................................14

INTRODUCTION
Business organisations aim to expand their business operations and create strong presence in
various international regions in order to gain success and survive in the corporate world for a
long time period. In order to ensure high profitability in foreign markets, business organisations
utilise different marketing strategies which attracts a large number of consumers for the
company. This report is based on the US based multinational company and the role international
marketing played in expansion of the company to India. The respective organisation operates in
the e-commerce industry and created a strong international presence in India with the help of
effective marketing. This report includes description about scope and key concepts of
international marketing and the rationalisation to market international. In addition to this various
routes of international marketing are also provided in this report. Apart from this criteria and
section process used during selection of an international market are provided in this report along
with various type of market entry strategies. Main arguments of the global versus local debate
are also given in this report.
MAIN BODY
TASK 1
P1 Scope and key concepts of international Marting
International marketing is defined as the selling and buying of products and services from
one country to another countries. It is also known as exchange of products and services between
the countries for a business trade.
Scope: The scope of international marketing is very wide and also has a huge meaning in
marketing context. Business cannot survival in international market without an internal plan.
Globalization plays a vital role in marketing sector as it allows the organisation to enter into
different countries to cater the market (Baker and Saren, 2016). Promoting products and services
internationally helps rising up the international markets and even bargaining power of buyers
also increases which has change the shape of the world. In reference to the selected firm, scope
of international marketing is mentioned below-
 Imports: Imports are considered as the easiest form of international market as it allows
to import from one country to another for selling in the domestic market. In context to
the chosen company the company is widely importing goods and services.

 Exports: Exports refers to as purchasing of goods and services from other countries for
use or selling. In context to the amazon, the company is actively involved in the export
process in order to enhance their productivity.
 Contractual agreements: The organisation establishes a contractual agreements with a
foreign where the foreign firm are allowed to use the organisation's patents, processes or
trademarks with the terms of agreement with or without any financial investments. In
context to the chosen company, it can be seen that company is having various contractual
agreements with various foreign countries in order to increase their customer's base
(Charter and Polonsky, 2017).
 Joint venturing: Joint venture is establishing a company by joining two organisation to
enter into a potential market. All elements such as investments, profit or losses are pre-
decided inn terms of both value and time. In respect to the chosen firm, this scope of
international marketing can help them in enhancing more productivity and profitability
and increasing their customer base.
 Fully owned manufacturing: This scope of international marketing is considered to be
the best when the interest of the organisation take full control on production and
promotion in the target market. Amazon uses this facility for selling products within the
nation or export to nearby countries. The products manufactured by them have the
control on its quality and promotions of the product. In respect to the chosen firm,
company has a strong fully owned manufacturing across many countries.
P2 Rationale for international marketing along with market routes
International marketing is highly important for business firms which want to gain stable
growth rate for a longer time period. International marketing provides business firms various
advantages to business firms which is one of the main reason behind adoption of international
marketing by business organisations on a global scale (Doyle, 2016). Amazon has gained
success in foreign markets after adopting various effective international marketing strategies.
Rational for adoption of international marketing is provided below: Diversification of income sources: Effective international marketing strategy helps the
company diversify their income sources as the goods and services of the company are
introduced to consumers from different international markets. This provides the company
new sources of income and reduces dependence of the company on a single source of

income. Amazon has gained exponential international success as they are not dependent
on single income source and gain profitability from various international markets. Adapt to demand fluctuation: International marketing is highly beneficial for the
company as it helps the company adopt to constant change in demand of their products.
Effective international marketing strategy helps the company clear inventory and gain a
stable revenue stream. In addition to his international marketing enables the company to
cater to their domestic market and respond to the needs of international consumers while
maintaining high profitability (Gupta, Pansari and Kumar, 2018). Amazon can adopt to
fluctuating consumer demand and earn with the help of strong international marketing. High potential for profitability: Business organisations adopt international marketing
strategy as it increases profitability of the company. This is one of the most persuasive
reasons for adopting international marketing as it helps the company accomplish their
most important goal of profitability. Amazon has been able to increase profitability
through effective international marketing as it helped the company solidify brand of the
company in foreign regions and gain the trust of foreign consumers.
International marketing routes
Partnering: This route for international marketing is used to market in regions which
have different corporate and social cultures. This includes formation of co-marketing
arrangement with successful regional form or creation of detailed coalition. In context of
Amazon partnering will help the company construct profitable image in regions which have
complex and different corporate and social culture as local partners have in depth knowledge
about consumer preferences and expertise in operating in the region.
Piggybacking: This route involves two or more business organisations which are not in
competition represent each others complementary products in each others market which help
both the firm expand their international presence. Amazon can utilise piggybacking by
collaborating with a non-competing firm as it requires low investment and reduces risk related to
international market entry (Heggde and Shainesh, 2018).
Foreign Direct Investment: This includes direct investment in foreign market by
building a new business establishment in the foreign country or acquiring a business firm present
in the international region. This method is suitable route to market for US based firm Amazon

as it gives full control to the company and the firm gains maximum profits from their
international business endeavours.
TASK 2
P3 Evaluation of criteria considered during the selection of an international market
Environment and market analysis
This selection criteria focuses on identification of the international market by analysing
certain variables present in each region. GDP growth is the main variable considered in this
analysis. This helps the company understand the infrastructure and growth prospects present in
the region. Analysis of country risk is essential for selection of profitable international market
which involves identification of political agitation, social stability, trade agreements with home
nation, government interference in business and currency devaluation. Market appeal is another
important variable which need to be considered during selection of international market which
revolves around identification of market demand for company product (Jin and Cho, 2018).
Operational barriers such as ease of doing business, government regulations and management
costs impact profitability and need to be considered during selection of an international
marketing region.
Amazon need to conduct profound market an environmental analysis of potential
international markets in order to identify the most profitable international region. The market
analysis conducted by the respective organisation need to cover every variable such as GDP
growth and ease of doing business. This will give the company profound information about the
consumers and costs of the market which will help the company select market which provides
high profitability to the firm.
Competition analysis
This analysis revolves around identification of competition, their distinguishing features
which contributed to their success in the region and economic performance. Conducting a
competition analysis will help Amazon understand intensity of competition in the foreign region
and tactics used by successful organisations in that regions (Khang and et. al., 2016)(Krautz and
Hoffmann, 2017). Amazon will be able to recognise international region with low competition
and secure beneficial position in the industry by understanding the reasons behind success of
their opponents and their marketing strategy.

Distribution channels
The includes selection of distribution channel suitable for the company an help the firm
quickly respond to consumer demand. The firm needs to analyse the current sales structure of the
area and find ways in which this structure can be adopted by the company for effective
distribution of their products or services (Manrai and et. al., 2019). In relation to Amazon the
company needs to ensure that the they gain in depth information about the competitive intensity
in international market to understand if the market is favourable for expansion and help the
company generate profits immediately.
Consumer Demand
This criteria for selection during entering an international market revolves around the
identification of potential consumer demand for the product or services in the international
market along with evolution of consumer demand in the future. Analysis of consumer demand
will help Amazon identify growth opportunities of the market and eliminate regions which
showcase low consumer demand.
Utilisation of these criteria will help Amazon identify profitability associated with an
international market. The company will gain success in their international business endeavours.
P4 Different strategies of market entry
Direct Exporting: This strategy of market entry revolves around directly providing goods
to international consumers form the manufacture company.
The merits of this form of market entry is that the company is able to gain full profits
without sharing them with agents or distributors. High initial investment, difficulty in
management of stock and high risks are the chief demerits of direct exporting.
Licensing: This is transfer related market entry strategy. A company which is known as
the licensor, gives permission to utilise IP of the firm to another company operating in the
selected international region for a certain time period. The licensor gains regular payment in the
form of loyalty from the company which gains permission to use their products which helps the
licensor expand their international presence easily and secure regular source of income. Constant
source of passive income and creation of growth opportunity are the merits of licensing
(Marinov, 2017). Licensing increases the possibility of IP theft and creates dependence of the
company on performance of licensor to gain profits which are the main demerits of this market
entry strategy.

Joint Ventures: These includes formation of strategic alliance between two business
organisation in which contribute their assets and share risks to enter an international market for
common benefit. The company gains access to market experts of the region along with effective
distribution networks which are the main merits of Joint Ventures. Miscommunication between
firms and limited flexibility are the main demerits of joint venture (McDonald and Wilson
2016).
Amazon need to utilise joint venture as their marketing strategy as it reduces risks related
to expansion while giving the company access to expertise and best resources.
TASK 3
P5 Main arguments for global versus local
Global marketing is defined as conducting promotional activities on a glo0bal scale in
order to attain global scale objectives of the company. The main argument which defines the
importance of global marketing in present world is to increase the income of the company and
exploit business opportunities present in various business organisations. Apart from this global
marketing practices provides business firms with various opportunities which include increase
brand recognition, high brand equity and secure beneficial position in their industry by reducing
the power of opponents. Amazon utilised global marketing in order to increase their target
consumer base.
Local marketing is defined as the process of targeting particular consumer base in a
specific region rather than aiming for a large consumer base. This type of marketing is highly
beneficial for organisation as it helps the company construct loyal consumers by constructing
custom promotional campaigns (Sharma, Kumar and Borah, 2017).
Basics Global Marketing Local Marketing
Products The products offered in this type of
marketing focus on global
consumers as a whole and products
are designed to full-fill the needs
of global consumers.
Local marketing focuses on full-
filling the needs of consumers from a
specific group and products are build
while considering their interests and
preferences.
Fund Global marketing requires huge
amount of investment and funding
Local marketing requires low funds

as it deals with diverse market. as it deals with homogeneous market.
Marketing
practices
The promotional practices used in
this type of marketing utilises
global platforms such as sports
events and international TV shows.
The promotional practices used in
local marketing utilise regional
platforms such as newspapers in a
local language.
P6 Investigation of ways in which product, price, promotional and distribution approaches
differ in various international situations
Product
This is defined as the services offered by an organisation which aim to satisfy demand in
the market. During international expansion, business organisations need to develop product
according to the needs and preferences of the international consumer base. In relation to
Amazon, e-commerce services of the company were modified in order to suit consumers in India
during their international expansion (Sun and et. al., 2019). This involved changing their
domain name and offering their services in Indian languages.
Pricing
This includes the pricing strategy adopted by the company for their international
consumers. In order to market goods to an international consumer base, organisation need to
consider the economic condition of the region to construct affordable and profitable pricing
strategy. Amazon adopted a pricing strategy which was suitable and affordable for the
consumers in India. This helped the company gain success in the country.
Distribution
This includes the distribution strategy adopted by the company to respond to consumer
demand in time. International expansion involves modification of distribution approach so that
the company uses infrastructure of the country for quick and effective delivery of products.
Amazon in addition to constructing fulfilment centres utilised unique distribution programmes
made for India. The company initiated easy ship in which the company collected products from
the seller and seller flex which trained sellers to enhance their inventory practices (Talay and et.
al., 2019) .
Pronominal

This includes the marketing strategies adopted by the company to advertise their
services. Business organisations need to consider cultural factors in order to construct effective
promotional strategy which is not insensitive to the cultural elements of the international region.
Amazon adopted unique promotional camping which focused on advertising the company to
sellers. The campaign included Indian language and helped the company connect with sellers
and build their platform (Wadhwa, Vashisht and Phutela, 2020).
TASK 4
P7 Expatiation and analysis of international marketing approaches
Business organisations adopt various approaches to international marketing in order to
enhance their profitability and cultivate strong international presence. Some of these
international marketing approaches are provided below:
Indirect Export: This approach to international market includes the company selling
their products to an mediator in their home country.
Advantages: This approach to international marketing does not require huge investment
in term of labour. Indirect export includes a mediator which has in depth knowledge about the
international region.
Disadvantages: The company is not able to form relation with their consumers due to
lack of direct contact with their consumer base. The firm is dependent on mediator for their daily
tasks.
Franchising: This strategy of market entry involves two parties which are the company
and the franchisor. The franchisor is defined as the individual or group of individual which
establish the trade name , trademark, franchise and and a business system of the company and
pays a certain amount of royalty to the company and an initial fee for acquiring the rights to
open a franchise of the firm. The firm gains regular royalty from the franchisor which is
beneficial for the company (Wu and Zhou, 2018).
Advantages: Franchising as a form of market entry reduces risks of failure in
international expansion as most of the work establishing the franchise is completed by the
franchisor which has profound knowledge about the local area. This along with swift growth rate
are the primary merits of franchising.

Disadvantages: Disadvantages of franchising include lack of control and freedom along
with investment required for training franchisees top deliver high quality goods.
P8 Comparison of ethnocentric and international orientation and ways for competition
assessment
Ethnocentric orientation: This marketing orientation emphasises on the importance of
business at home country is superior in comparison to international business. The business
organisation feels that the practices within their home country should drive their overall global
business strategy.
Poly centric orientation: This market orientation focuses on fulfilling particular needs of
international markets and understand that unique approach is required for international markets.
Geocentric orientation or international orientation: This type of marketing orientation
focuses on understanding the differences and similarities between various international markets
and their successful integration. This type of orientation focuses on including various on
combining home orientation and poly centric orientation. Amazon utilises international
orientation to successful market their products in foreign regions.
Basis Home orientation International orientation
Market perception Home market is regarded as the
primary market which is
increased by entering new
markets.
The global market is taken as
a single market (Baker and
Saren, 2016)
Market strategy The domestic market of the
company is increased as the
company moves into
international markets.
The firm adopts a marketing
strategy which is suitable
internationally.