BTEC HND Business - International Marketing Overseas Report

This report provides a comprehensive overview of international marketing, examining key concepts, the rationale for companies to market internationally, and various market entry strategies like licensing, franchising, and foreign direct investment. It delves into the criteria for selecting international markets and analyzes the global versus local debate, exploring how product, pricing, promotion, and distribution strategies are adapted across different international markets. The report also discusses international marketing approaches organizations can adopt, comparing home and international orientations, and assessing competitors, using Tesco as a case study to illustrate these concepts. The report covers a range of topics including the scope of international marketing, including exports, imports, and joint ventures. It also addresses the advantages and disadvantages of various market entry strategies, along with the importance of product adaptation, pricing policies, distribution, and promotion strategies in international markets. The report provides a thorough analysis of the topic, using Tesco as a case study to illustrate the concepts.

INTERNATIONAL MARKETING
OVERSEAS MARKETING

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Scope and key concepts of international marketing..............................................................3
P 2 Rationale for company to want to market internationally and describe their various routes
to market they can adopt..............................................................................................................4
LO 2.................................................................................................................................................5
P 3 key criteria and selection process to use when considering which international market to
enter.............................................................................................................................................5
P 4 Different market entry strategies with their advantages and disadvantages..........................6
LO 3.................................................................................................................................................8
P 5 Overview of key arguments in global vs. local debate..........................................................8
P 6 how product, pricing, promotional and distribution approach differs in variety of
international markets...................................................................................................................8
LO 4...............................................................................................................................................10
P 7 Analyze various international marketing approaches organizations can adopt...................10
P 8 Compare home and international orientation and ways to assess competitors...................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing refers to the company's penetration into the prospective markets of
different countries by directly engaging in the local marketing environment. Global marketing is
the application of a single marketing strategy in the worldwide market, for a product or service.
Tesco is a British multinational groceries and general merchandise retailer headquartered in
Welwyn Garden City, England. It is the third-largest retailer in the world measured by gross
revenues and the ninth-largest in the world measured by revenues. This report contains highlights
such as strategies to enter in different markets. Key concepts of international marketing, reasons
for company to serve internationally. Various international marketing approaches organizations
can adopt. Product, pricing, promotion and distribution policy in international markets (Li, Liu
and Bustinza, 2019).
LO 1
P 1 Scope and key concepts of international marketing
Key concept-
There is a concept behind international marketing which is important and needed so that
companies such as Tesco can recognize their hometown to establish their operations in different
countries with the help of aspects such as
Global Marketing- It takes help from their headquarter town so that they can achieve service on
a national level.
Globalization- It is a different concept that focuses on setting up communication through
different channels such as social media, print media, advertising etc.
Export Marketing- This stage keeps their focus on distribution of products and transporting
goods so that trade does not get affected.
Multi Domestic Marketing- If this concept is followed then company will have to extend their
business related activities at global level.

International Market- In order to work with this concept management needs to make sure that
they are able to export and import goods over and across the world so that they can have
diversified clients and extend their branches for that.
Scope of International Marketing-
In order to increase scope company needs to enroll the method of global marketing.
Although there are areas through which they can increase their scope (Paul and Mas, 2020).
Exports-
In order to establish their name in outer markets it is important that they export their
goods to different markets so that they can spread awareness for their brand.
Imports-
It is essential for business to gather raw materials from different countries and then finish
their product and then in a professional manner sell it to other countries.
Joint Venture-
In order to increase their scope this option allows them to work with one more brand and
they can serve in places as per their decision. All the factors such as investment, profits and
losses will be decided by them. This will make it easy for them to enter in new markets and
achieve their goals.
P 2 Rationale for company to want to market internationally and describe their various routes to
market they can adopt
Increase Sales-
If company is observing that their business is successful at one place then need to look
for expanding their operations. This will help them to increase their sales. They need to make
sure that products offered by them in different markets must have different attributes which
attracts buyers and make it success. This way they will be able to increase their market share
(Lacka, Chan and Wang, 2020).
Improve Profits-

Management of Tesco needs to look for those markets that turn out to be less competitive
and set up their base of operations there. If the markets are less competitive they can set the price
as per their wants and either attract buyers to increase their sales or increase their level of profits.
Short Term Security-
If they expand to different markets they will be able to have a period of secure tenure to
serve their operations even at the time of recession or downfall in economy.
Increase Innovation-
By extending their base of operations and serving in different markets they can raise
funds through any source which they can use later on in the area of research and development so
that they can launch some innovative products or concepts in market.
Economies of Scale-
By exporting their goods and services they can attain this benefit in their business. They
need to increase their quantity of outputs and sell it into different markets with some minor
changes so that they can attain the benefit on this strategy and increase their profits.
Government Incentives-
If companies trade in exports then they will receive support from government in
monetary terms such as their rate of interest will be reduced and concessions such as these will
be added to their list so that they can use that money to offer greater goods and serve up to their
reputation.
LO 2
P 3 key criteria and selection process to use when considering which international market to
enter
Identifying foreign markets-

This is necessary before selecting as it is concerned with viability of market and assessing
the return on investment. Management needs to find out the potential of market and understand it
as there are many markets available and success of company will depend on it.
Proper selection-
In order to select proper market it is necessary to eliminate some factors which affect
business. If the product adaptation rate is high then company needs to leave that market. Some
countries have quota to export or import goods which will increase the cost. Sometimes shipping
or tariffs are high for which they have to eliminate that option (Morgan, Feng and Whitler,
2018).
Selection of foreign markets-
They need to discriminate between countries by conducting different studies or analysis.
After that they need to focus on evaluating the size of market and rate of acceptance for their
product. After they have completed screening as per the resources available to them they must
select the suitable market to achieve their objectives.
Selecting Target Countries-
In order to select a viable outcome decision needs to be taken and it is done on four
factors that are size of market, different environments such as political, legal and social. They
must also need to take help of those organizations who promotes exports as it helps to build their
GDP in market.
P 4 Different market entry strategies with their advantages and disadvantages
Licensing and Franchising-
This is a suitable option for Tesco as they deal in the line of retail and they want to
establish their business in international markets on a large scale. With this option they will get
the royalty for their name, trademarks, patents etc. even the risk will be of that individual who
will buy the franchise.
Advantages-

 Reduces the cost of entering into different markets.
 Individual who is buying the franchise have knowledge about local markets.
 Extend the option for passive income.
Disadvantages-
 Company has to leave their image and reputation in their hands and if anything is caused
by them it will directly affect their profits.
 They will not have complete control on decision made by franchisee.
Joint Ventures-
In order to enter with this option management will have to agree to share their resources
such as brand, knowledge or field in which they consider themselves expert. This is suitable in
those countries where acceptance or adaptability to new things is less and government does not
allow full ownership (Katsikeas, Leonidou and Zeriti, 2019).
Advantages-
 Risks from political side are low because they have the insights about local environments
and markets.
 They have the option of transferring knowledge, properties, assets and other resources
easily.
 Jointly both partners can grow in their respective markets.
Disadvantages-
 Many issues have happened in this form of business which belongs to clashes in culture
or difference of opinion that affects their productivity.
 If the matter is big then legal aspects are to be involved which consumes lot of time.
Foreign Direct Investment-
This form of market entry requires an investment and then Tesco will be able to deal
internationally as merger, acquisitions or other Greenfield investments. This is considered for
companies such as Tesco who plays on big level and deals in potential markets.

Advantages-
 They have the option to retain control over their operations.
 Manufacturing cost can be reduced by choosing low quality materials, cheap labor etc.
 They will have the option to get concession or subsidy on tax in favor of their investment.
Disadvantages-
 High level of risk is involved because of role and interference of government.
 It requires sufficient amount of investment to enter in different market which cannot be
afforded by many businesses.
LO 3
P 5 Overview of key arguments in global vs. local debate
A company such as Tesco who deals on large level requires talented employees who have
skills to complete tasks in flexible manner so that international deals do not get disrupted. Many
companies are making decisions to hire employees on a global level or local level but it is
important to understand that management does not work with universal approach. There are a lot
of issues when companies have to operate in both markets such as many of the people are not
able to adapt or adjust in outer culture. There are increasing concerns for security measures
which need to be looked over. It is important that company works with those employees whose
approach is open to local or global markets so that they can serve without any discrepancies and
maintain the flow by getting expected results they have set as their target. This will also help
them to improve their networking dynamics which will help them to gather more knowledge and
work with something new which can help them to attain new things (Jiménez-Asenjo and
Filipescu, 2019).
P 6 how product, pricing, promotional and distribution approach differs in variety of
international markets.
Product
Product Standardization-

In this approach they will launch the same product in different markets due to its
attributes and nature so that it can be successful.
Product adaptation-
This is different than local markets as in order to gain acceptance to their products it is
important that they invest more capital in them.
Pricing Policies-
Policy on pricing is different and kept as separate due to different measures such as
differences in wealth, competition etc. Although they are facing difficulty to use this form of
policy because due to advancement in technology uniqueness is going out of their offerings. This
is why they are using global pricing strategy so that they can serve in different markets easily.
Distribution-
There is not much of a difference in this aspect instead of change in mode of transport
and its price. Main focus of this aspect is to remove barriers in between manufacturers and final
buyers so that they can trade easily and consumers get their goods on time (Makrides, Vrontis
and Christofi, 2020).
Promotion-
This aspect focuses promoting their goods to potential buyers in different markets and it
is done on the basis of culture of people so that they accept it and does not lead to any
controversy. This helps them to portray their attitude with other foreign products and they use
these strategies as per the customer they want to target. Other things are also looked after such as
per the level of competition they want to tackle in respective markets. It is necessary that
company have appropriate amount of funds and knowledge to choose the right form of
promotion.

LO 4
P 7 Analyze various international marketing approaches organizations can adopt
Polycentrism-
It can be stated as orientation of host countries which assesses their goals and objectives.
It is done by keeping in mind the strategies made, planning and procedures implemented that
they can be used in market as per the international operations. In this method management of
company will prefer local condition techniques for foreign markets. They work on the
assessment that culture of everyone is different which makes it difficult to understand so that it
does not affect their profits. Management of Tesco have to look after control and coordination so
that they can understand their objectives and serve the needs of different countries as per their
mindset and beliefs (Moon and Oh, 2017).
Ethnocentrism-
This approach works on a perspective that states that beliefs and values of one group is
superior to others. This method is taken by those companies who have different culture or nation
of employees. This states that every nation believes that they are superior over others.
Companies that will follow this approach will focus on making decisions and set standards for
employees so that they can serve up to the quality and quantity which was expected. This
approach is a centralized approach which makes individuals adapt to local situations and it leads
to problem in staffing even after putting large money in required areas. Companies who follow
this approach may lose best of employees to their competitors which can affect their innovation
power and flexible accessibility.
Geocentrism-
This approach focuses on globally oriented measures so that it can manage the operations
of multinational companies. it does not highlights any bias factors or decisions but it shows the
way through which they can serve the company in better way. It works on the basis of evident
decisions it does not select employees because they can handle the responsibility as it is from
their home country instead it will select the most appropriate person in the company who have
the potential to solve their problems and issues globally. Main goal of this approach is to

establish a bond between the headquarters and subsidiary base of operations. Two aspects that
are geocentric that is marketing and research and development (Ibeh, Crick and Etemad, 2019).
They have to work on measuring the working and operations of every country. For instance
operations and performance will be different in home country and other country. This is why
they have to make sure and set a standard that can be achieved everywhere and offer everywhere
they maintain their operations.
P 8 Compare home and international orientation and ways to assess competitors
Domestic Marketing International Marketing
This form of marketing refers to maintaining
operations in national borders.
This form of market involves dealing outside
national borders.
It refers to marketing in local market which
keeps the scope of operations limited.
It has the availability to go global because they
serve in international markets and that’s where
they have to promote their products.
One currency is used to manage their
operations and maintain their business.
Different and various currencies are used to
manage their operations and accept payments.
Controlling and taking decisions that is related
to this form of business is easier.
On the other hand taking decisions for this
measure is difficult as they have to look after
different factors which involves high risk.
Management of Tesco needs to understand and examine these measures so that they can improve
their dealing and marketing strategies which will be helpful to them. There are different and
many opportunities for international marketing which needs to be taken into consideration so that
they can spread awareness with right techniques which helps to grasp attention of people and
help in generating more sales (Agwu and Onwuegbuzie, 2018).
CONCLUSION
From the above studies it has been concluded that Tesco needs to analyze and study different
markets before making a decision of entering into different or new market so that it does not
affect their rate of growth or profits. Management needs to consider different options and be
prepared so that they do not miss any opportunity for international markets. Other than this

management needs to use the right strategies and right policies on the basis of market they are
entering and audience they are targeting so that they don’t have to indulge in any controversy
which can affect the flow of their business. It is important for them to keep something unique in
their offerings so that they are able to attract their buyers easily. It is important for them to form
strategies and attain the benefit on economies of scale and for that they have to increase their
productivity channels.