International Marketing Strategies for Marks & Spencer Plc in Chile

Desklib provides past papers and solved assignments for students. This report analyzes Marks & Spencer's international marketing strategies.

International Marketing

Contents
International Marketing...................................................................................................................1
Introduction......................................................................................................................................4
Lo 1..................................................................................................................................................5
P1 Analyse the scope and key concepts of international marketing............................................5
P2 Explain the rationale for it to market internationally and describe the various routes to
market the organisation can adopt...............................................................................................7
M1 Evaluate the opportunities and challenges that marketing internationally presents to your
chosen client organisation............................................................................................................9
Lo 2................................................................................................................................................10
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter...........................................................................................................................10
P4 Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each.........................................................................................................12
M2 apply the market evaluation criteria and entry strategies and make recommendations for
your chosen client organisation.................................................................................................13
Lo 3................................................................................................................................................14
P5 Present an overview of the key arguments in the global versus local debate.......................14
P6. Investigate how the product, price, pricing, and promotional distribution approach differs
in a variety of international contexts.........................................................................................15
M3 Evaluate the context and circumstances in which your client organization should adopt a
global or local approach, highlighting the implications of doing so.........................................17
M4 Determine and articulate in detail how to adapt the marketing mix of your client
organization in different international markets..........................................................................18
Lo 4................................................................................................................................................19
P7. Explain and analyze the various international marketing approaches your client
organization can adopt...............................................................................................................19
P8. Compare home and international orientation and ways to assess competitors, outlining the
implications of each approach...................................................................................................21

M5. Evaluate various marketing approaches and competitor analysis in relation to an
organization and make recommendations on how they should operate in an international
context........................................................................................................................................23
Conclusion.....................................................................................................................................24
References......................................................................................................................................25

Introduction
International marketing is one of the vast terms that is used by every organisation which wants to
trade its products internationally. It is the tool that is used to apply the doctrines of marketing in
more than single country. This is the term that is used for the addition of the company's native
marketing strategy within the international boundaries (Amankwah-Amoah, Boso and Debrah,
2018). Here the marketing principles are applied so as to gratify the requirements and the wants
of diverse people who are living in the different localities. Her company wants to take its brand
to the other nation so as to capture the market of the country. The company Marks & Spencer Plc
is considered as the main British global retailer which is headquartered in Westminster, London.
This was instituted by Michael Marks and Thomas Spencer in the year 1884. This study consist
of an understanding of international marketing and industry strategies. While the entry to the
selection of the international market would be predicted for the company. Also, some of the
elements of marketing would be adopted so as to standardise across the global market. While at
the last evaluation of the international marketing efforts would be made.

Lo 1
P1 Analyse the scope and key concepts of international marketing.
As the term international marketing itself is self-sufficient to define what it means, however,
there are various technical forms in this term which needs to be defined so as to achieve the
whole knowledge of term. As the term, international marketing means a system which is used by
the marketer of the company so as to make it expand its business outside the local borders. While
this is the methodology where various international marketing terms are used such as the transit
pass, processing, export and the regulatory acts (Armstrong and et. al., 2015). While some of the
laws are also imposed by the government of the country where the transporting of the products
and services has to be permitted by the government. While there are many marketing tools such
as the internet which is used by the company to make their products and operation functional
internationally. Hence various approaches are used by the company so as to operate their
operations internationally these approaches contains marketing mix, 4P’s ideas and the models
given by the philosophers. Hence the international marketing has various benefits that are
associated with making the operations of the company international. If the company goes
globally and operates its operation internationally then it would become easy for the company to
internment the new customers and would also result in higher profits. As the company will enter
into the new marketplace later it would be easy to capture the fair and the customers through the
variety of offerings that they give to the customers. Also, global marketing helps organisation to
know the culture of the country in which they are supposed to expand their operations.
While global marketing has a broad scope in the present marketing situation as the company has
various opportunities that they can capture to cultivate the outcome. This is seen that it is
applicable all over the world and the people of the country can check the revenues globally. As
there are various levels of marketing which are involved in it which includes the following:
 Domestic marketing: This is the marketing which is used within its own country borders.
Here this is seen that the products of the company transfers from one state to another state
hence for the promotion of the products in this system are made through the local
channels. While for this they make their own products available to the users without
having any collaborations. Here the emphasis of the company is on gaining the local
market and to become the marketplace leader there. Hence as Marks and Spencer is

already well established in its domestic market so they don't need any other strategy for
expansion.
 Export Marketing: This is the marketing approach where the product of the Organistion is
being promoted to the internationally. Here the company does not operate its official
stores in the other country (Bianchi and Mathews, 2016). While in this approach only the
product is being supplied to the channel partner for sale. It is one of the most profitable
forms of marketing where the product is being sold outside the country without incurring
the extra cost. As this is seen that Marks and Spencer are exporting its products outside
the domestic market which is helping them to get the most profit.
 International marketing: This is the approach of marketing where the organisation
expands its business outside the domestic area. Hence through this approach, the
company open its stores in the countries where they are not functioning and try to capture
the market. While the company here implants its department and carries the research so
as to promote their product according to the demand of the customer. As this is seen that
the organisation desires to expand its set-up in Chile. As this is the market which is not
captured by the company and is free for it’s capturing.

P2 Explain the rationale for it to market internationally and describe the various routes to market
the organisation can adopt.
There is a variable source of marketing the product which can be used by the company to make
their products marketable. For expanding internationally choosing of the right global market is
most imperative so as to move into the global market. Selecting the right marker would help to
analyse the culture and the market situation of that country. Hence if the market is selected in the
right manner then it would help in focusing the business potential. Market selection is the main
task as this helps in choosing the right audience that has to be targeted by the company. While if
the market is chosen correctly then it will help in supporting the business to compete
successfully (Demangeot, Broderick and Craig, 2015). Hence the market that is chosen by the
organisation to expand its trade in Chile as there is no competition in the fashion industry due to
which they will be able to achieve the first mover advantage in the country.
Hence there are various routes that the company can capture so as to market the product
internationally. These are considered as below:
 Direct selling: This is the way which is used by the enterprise to sell the product openly
to the targeted customers and the latent clients. This is the type of offering where there is
no middle man included in the sale process. Here various roots such as websites and the
physical stores are opened by the company in the country so as to capture the targeted
customers. This root requires a huge amount of cost as well as the employee's turnover
for achieving success in the country. The type of route which suits best to the Mark and
Spencer is direct selling of its product.
 Wholesale selling: It is considered as the way of selling products to the wholesaler,
retailers and so on. This is considered as one of the best methods for selling the goods at
a large volume. This is the best way to sell the new products and present it in the market
as the supply chain is already in existence. Hence for entry into this and use this type of
approach it would be very difficult as there exist a huge and prior market research. Also,
this approach has a lower profit margin.
 Online sales: It is the best method to enlarge business in the country. Here the
organisation takes the support of the websites or the e-business websites where the
product can be ordered online through various modes. This is the route that helps in
saving the cost of the company and is available 24*7 to the customers. as if the company

is selling the product directly through its official website the exclusivity of the products
can be checked and the customers are duly aware of the products that are offered by the
company.
 Combining Channels: This is considered as the route where the products of the company
are sold through various routes (Eteokleous, Leonidou and Katsikeas, 2016). As this is
seen that the company is using the direct sales procedure where they can open various
direct outlets for offering the goods to the users. While on the other hand the official
website for online ordering can be taken by the company so as to achieve the advantage
of capturing the market.

M1 Evaluate the opportunities and challenges that marketing internationally presents to your
chosen client organisation.
There are various opportunities and challenges that are related to making the market
internationally. While some of them include the following:
Opportunities
 Market expansion: This is one of the most important opportunities for the company to
capture the market at a global level. This can be grabbed by the company by expanding
the business worldwide.
Brand reputation: This is the form of opportunity that is provided by the international marketing
where the company handles the opportunity to get an international brand reputation which results
in the good brand reputation in the world (Javalgi and La Toya, 2018). This is the form of
marketing where the brand status is not restricted within the country but is directly prolonged in
the wider areas of the international market.
Challenges Government barriers: The government of the country puts several barriers at the time of
expansion of the business. As the barriers to the import of the goods in certain countries
and the rate of tax is one of the examples which the company has to face while doing
international marketing.
 International competition: this is the barrier that is imposed due to the competition in the
global market. As in the current market scenario, the competition is very high due to
which the business of the company may be hampered.

Lo 2
P3 Evaluate the key criteria and selection process to use when considering which international
market to enter.
The selection of the global market to enter into is considered as one of the difficult tasks as this
involves various steps and the analysis has to be done rigorously so that the outcome can be
predicted to positive possibilities. Hence various steps that are included in this are:
Step 1: Analysing the marketing objectives for the intercontinental market: This is the stage
where the company has to create and develop objectives for entering into the market that they are
targeting to enter. As the company is making a plan to enter into a country where there is no
competition hence they need to maximise their operations there (Kotler and et. al., 2015). While
the company has to develop a SMART objective so as to meet the specific, measurable,
achievable and reliable outcomes.
Step 2: Selection of the country: This is the step where the company would analyse the
country where they have to enter and develop the market. Hence market research has to be done
by the company to choose the area where the there product can be sold. As the country that is
chosen by Marks and Spencer is Chile where they have to want to enter and achieve the
objective of maximising the sales. The company sets the segments which will aid to encourage
the trade in the target country.
Step 3: Pre-incorporation screening: This is the step where the company would do a pre-
incorporation screening of the nation in which they want to inflate their business. The
corporation would introduce the pre-incorporation tests where the environmental and the other
factors would be checked by the company. Also, the managerial decision and the number of
funds that are required by the company to increase its operations are determined in this section.
Also, the number of employees, infrastructural constructions and the production process would
be managed in this step.
Step 4: Test marketing: This is the step where the market is being tested by the company
for its full incorporation. Here the company would launch the products on a small scale so that
they are able to check the demand and profitability status of their products that are sold by them.
Here the feedback is collected for the product that is launched in the market.

Step 5: Commercial production and sales: here the company after doing the testing and
the market analysis starts to trade the product in the marketplace and achieve the objective of
maximising the sales. The official selling of the product is started and is done at a smaller rate.
Here the company regularly checks the feedback and change the way of production as and when
demanded.

P4 Explain, using examples, the different market entry strategies, including the advantages and
disadvantages of each.
In the international market structure, there are various market entry strategies which help to
capture the market and achieve success. These strategies are determined as:
 Entry analysis: This is the first step in the international business which helps to analyse
the potential market. Here the international business is assessed on the basis of how
much sales or revenue the business can generate. The cost would be analysed in this
which would include the cost of sales and the product prices. While the demand and
environmental factors would also be analysed before doing the business. While after this
the business would assess the potential and the existing profitability, also the profitability
for the future would be considered for the same. As there are definite advantages and
disadvantages that are related to this which includes a clear analysis of the marketplace
and the client’s trends, wants and expectations. While the organisation can take an
effective judgement for entering into the universal market. However, the disadvantages
that are related to this approach is that analysis is costlier and is a time-consuming
process.
 Exporting approach: This is the entry strategy where the exporting can be done through
direct exporting or indirect exporting policies (Leonidou, and et. al., 2018). While the
straight exporting is used to sell the produces directly to the clients and on the other hand
indirect exporting means selling the product to the intermediate company which would
further sell the product to the customers. While this approach helps in reducing the price
and the period for producing the products. Some of the advantages that are related to this
approach include more revenue alongside the aggressive brand status. While the
investment in the direct exporting is huge which is one of the disadvantages. While on
the other hand indirect exporting lessens the investment that is to be made while
decreasing the profit as a huge commission has to be given to the seller.