Analysis of International Marketing Strategies for Marks and Spencer

This report provides a detailed analysis of international marketing strategies, focusing on the application of these strategies to Marks and Spencer (M&S). The report begins with an introduction to the scope and key concepts of international marketing, followed by an examination of the rationale for organizations to market internationally and the various routes to market that M&S can adopt, including licensing, franchising, strategic alliances, and joint ventures. Key criteria for selecting new markets are then discussed, encompassing market demand, competition, country performance, trade barriers, and climate considerations. The report further explores different market entry strategies employed by M&S, such as exporting, franchising, and mergers and acquisitions. A key section provides an overview of the local versus global marketing debate, followed by a detailed discussion of the differences in product, price, promotion, and distribution approaches in the international marketing context. The report concludes with a comparison of home and international orientations and an assessment of competitors.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASKS.............................................................................................................................................1
P1. Scope and key concepts of international marketing.........................................................1
P2. Rationale for an organisation to market internationally and various routes to market that
Marks and Spencer can adopt.................................................................................................2
P3. Key criteria for the selecting new market........................................................................3
P4. Different Marketing entry Strategies adopted by Marks and Spencer.............................4
P5. Overview of the key arguments for local vs global debate..............................................5
P6. Differences in the product, price, promotion and distributional approach in the
international marketing context..............................................................................................6
P5. various international marketing approaches.....................................................................8
P8.Comparison of home and inter national orientation and ways to assess competitors.......9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing is define as the type of marketing which is done outside
the geographical boundaries of the nation. Scope of international marketing is wide and there are
lots of approaches which a company can follow to enter in a new foreign market(Armstrong and
et.al., 2015).
TASKS
P1. Scope and key concepts of international marketing
International market has some purpose which is publicizing the difference in between
national and international marketing and the way they influence marketing strategies formulation
and its implementation. An appropriate identification of all aspects of international marketing
will allow Marks & Spencer for taking up advantages of big opportunities which are offered by
these kinds of markets. In the international market, it has to deal with the environment which is
completely unknown and has a complex nature. M&S has to adopt and develop some strategies
which will enable it to succeed in these markets. There are three kinds of phases which one has
to set like foreign trade orientation, guidance for sales in foreign markets and international
market orientation. Whereas, on the other side, strategies which are global depicts that world
market is homogeneous in nature. There are numerous benefits which can be derived from the
adoption of these strategies.
The usage of internet and social media platform as well as many advertising techniques
has facilitated the growth of global marketing. There is a tremendous change which globalisation
is currently witnessing; is increasing the scope of international marketing(De Mooij , 2015).
Scope of international marketing used adopted by Marks and Spencer has following factors
which are:
Export
In this process, goods and services are traded from one country to another which can be
promoted by social platforms and also following the rules regarding this process in both; home
and foreign country.
Import
It is the process of buying and bringing products and services to home country from other
nations.
Re-export
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It is the process of exporting foreign goods in the similar state likewise; it was imported
previously, from the area which has free circulation to those premises has inward processing and
zones which are industrial free.
Trade block and their impact
Trade block is built by those countries which have an active participation involve EU,
LAFTA, ASEAN, EFTA and CACM.
P2. Rationale for an organisation to market internationally and various routes to market that
Marks and Spencer can adopt
There are various ways M&S can adopt for international marketing which are described
as follows:
Licensing
Licensing is define as where it can charge some fee for the usage of its technology,
expertise or brand. Licensing can include franchising, turnkey contracts and contract
manufacturing(Mathews and et.al., 2016).
Franchising involves the process in which a company provides its brand, concepts,
expertise and other facilities which are required for operating in other international markets. All
the management is controlled by franchisers.
Turnkey contracts are considered as one of the major strategies for building large plants.
It includes factors such as providing training and development to the employees where skills
tends to be sparse.
International Agents and Distributors
Agents are considered to be an initial step in the international market. Agents are known
to be an individual or an organisational body which is contracted to conduct business in foreign
market on its behalf. They take commission on number of goods sold instead of taking an
ownership for the goods. Agents can also represent two or more companies. They can be
considered as a low costing individual but has low control options. If Mark and Spencer has an
intention to get globalised then it makes sure that their contract allows them for regaining direct
control over the goods. Distributors are similar like agents but they have ownership on the goods.
They take incentives for marketing the products and makes profit out of it.
Strategic Alliances
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This term depicts the whole series which comprise of relationships between companies
that market their products internationally. These can be in between two competitors. They are
generally non-equity based agreements which denote that companies in agreement remain
independent and separate(Morschett , Schramm-Klein and Zentes, 2015).
Joint Venture
Joint ventures are those which are equity based that depict that a company which is set
up with different parties own a proportion of the newly formed business. Following are reasons
which denote the reason for Joint Ventures that help to assist them for entering into a new
market:
 Accessing technology, core competency and management skills
 For gaining entry into a foreign market
 Accessing different distribution channels, manufacturing and R&D
P3. Key criteria for the selecting new market
Following are the key criteria for selection of new foreign market:
Market Demand
Market demand is generally one of the main aspects where company should decide
whether to enter in that market or not as demand denotes quantity of the particular product
demanded by customers in that market. Marks and Spencer first analyses the market demand, the
market with high demand has capability to give lots of customers and a good sell of the products
which is beneficial for the company itself(International marketing mix strategy.2018).
Level of Competition
Degree of competition is an important aspect which can help to decide whether to take
entry in that market or not. Assessing level of competition includes studying the competitors
completely which includes their product price points, quality , methods for distribution, loyalty
of consumers and ability of providing sales services to them. A great competition can lead new
entrance to form strategy accordingly.
Country Performance
It includes assessing of macro-economic conditions and trends of a selected country
where one is showing interest to expand their business. Also, population of the country and other
demographic aspects are important factors that influence decision. If a country has suitable
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macro-economic condition then one can easily set up their business in that particular market and
a large population leads to form a strong consumer base in the market.
Trade Barriers
It is equally important to know tariff and non-tariff barriers which can be standards,
regulations, quotas, import licences and other necessary aspects of regulations such as
adaptations, packaging and labelling of the particular country where M&S wants to enter. These
barriers have a direct influence on the business operating of a particular firm, a country with
strict and complex trade barriers are hard for performing business(Papadopoulos and
Heslop,2014).
Climate and location
Climate and location facilitates the process of activities which are involved in the
business. A suitable climate makes every activity easy whereas an accessible location can lead to
effective logistic operations which is essential and helps in the reduction of shipping cost.
Location and climate should also be suitable for the product as some products are sensitive to
particular climate.
P4. Different Marketing entry Strategies adopted by Marks and Spencer
There are different strategies which are adopted by M&S for entering into new market:
Exporting
It is considered as the most obsolete and well operating form in foreign markets. In this
strategy no direct manufacturing of goods are required they simply produce goods in their home
country and send it to other foreign countries and marketing of their products are performed.
There are different types of responses to the export which is dependent on pressures which are
perceived by decision maker.
Advantages
 It has less risk as manufacturing is done in home country
 Provides learning opportunity of foreign markets Reduction of potential risk of operating
Disadvantages
Every country does not have smooth rules and regulations regarding imports of goods so
it can be based on mercy of particular country.
Franchising
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It is a process in which supplier(franchiser) allows an operator for using their trademarks
and distribute goods in the defined areas. Franchisee also pays a fee to the supplier. It can be
regarded as a practice which uses business model of a firm which is successful(Penz and
Kirchler, 2016).
Advantages
 It provides freedom for employment
 It already has products and services which are proven
 Reduction in the risk of failure
Disadvantage
It includes a high amount of fee which has to be paid by franchisee, not every one can
afford to adopt Mark and Spencer's franchise(Souchon, and et.al., 2016).
Mergers and Acquisition
This is also known as strategy for expansion. Merger and acquisition are important and
are considered to be strong drivers of globalisation. It can be collaborating with other company
which is a competitor and having same consumer baseline and acquisition can be a hostile
takeover.
Advantages
 Increase in the power of market
 Technology acquisition
 Optimum utilisation of resources
 Risk minimisation Tax Benefits
Disadvantages
Some companies which are acquired can be obsolete in working and introducing new
concept can be very complex.
P5. Overview of the key arguments for local vs global debate.
 Local or domestic marketing can be referred as marketing which is done within the
nation's geographical boundaries whereas International marketing can be regarded as a
set of activities such as production, promotion, distribution, advertisements and selling
are performed outside the geographical limits of a nation.
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 Local Market is served over a small area whereas global market is served over large
areas.
 Interference of government is less in local marketing whereas it is comparatively high in
international marketing.
 Operations of business in local marketing are performed only in single country whereas
in global marketing it is performed more than one countries.
 Use of technology in local marketing is less whereas international marketing requires
more use of technology(Samiee and et.al., 2015).
 Risk factor involved in local marketing is less as compared to international marketing.
 Capital requirement is less in local whereas global market requires huge capital
investment
 Nature of customer is similar in local markets whereas international markets witness
variation in the taste and preferences of customers
P6. Differences in the product, price, promotion and distributional approach in the international
marketing context.
There are different approaches of product, price, promotion and distributional approaches
which are followed in international market:
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(Sources:https://ceopedia.org/index.php/International_marketing_mix_strategy)
Product strategies
It includes following aspects under the policy of product:
Product Standardisation
Under this strategy company provides products which are unchanged in the foreign
markets. These actions have sense when due to the nature of product , it has similar usage criteria
for every customer in various markets. It is very comfortable strategy which is not also so
expensive.
Product adaptation
It includes various adjustments which can be done on product and changes required in its
properties. It includes several aspects like packaging, size, symbols and colour. The process of
adaptation requires huge capital investment and experience regarding it.
Gradual changes in products
It is the type of situation when one has no danger regarding emergence of any
competitors.
Pricing Approach
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It involves the problem which are associated with price management on the scale for
international marketing. It has two types of points of views which are
Introduction of separate price policy in foreign markets.
Developing modern technologies associated with communication which makes all markets
similar which are distant,making implementation of separate pricing policy very hard. In this
particular case companies follows global pricing strategy.
Distribution Approach
Distribution activities in an international market are related to offering the products in
market in a particular form which is very appropriate and suites the market condition. The
activities should be adopted on the basis of marketing mix and can get change along with them.
The main goal of this policy is to overcome all kinds of barriers such as spatial, temporary and
ownership between distributors and customers. For this international logistics plays a vital role
for all those international sales and production activities
Promotional Approach
Promotional activities plays an important role in transferring information to all those
potential buyers regarding the product and services of company, in order to make them buy their
offerings. These objectives are dependent on certain factors such as
Promotional objective in the international market
 Financial resources
 regulatory body in a country
 Cultural factors
 Competition in the foreign market.
P5. various international marketing approaches
Mark and Spencer can follow various international approaches which are:
Product or commodity approach
Under this approach the main focus is in the their offerings or it is regarded as the
offering which is based on commodity. This can be related to the movement of particular good
from the producer to the ultimate customer. This approach has a concern on problems which are
related to a particular commodity or item which can condition and sources of supply, nature of
demand, demand extension, transporting mode, storage, packing, standardisation etc.
Institutional approach
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In this particular type of approach focus is mainly non the study of institution which h
includes middlemen, wholesalers, retailers, sup[pliers, exporters, importers , warehousing and
etc. which are involve in the process of marketing during the movement of offerings. This
approach can be regarded as middlemen approach. More emphasis is done on the analysis of
functions related to institution.
Functional Approach
This approach provides more importance to functions which are related to marketing. It
concentrates on the services which are specialised or those junctions which marketers performs.
As marketing is a combination of various activities such as buying, selling, pricing,
standardisation, storage, transportation, advertising, packing and etc.
Management Approach
It concentrates on those activities or functions related to marketing and decisions
associated with the firm. It includes those approaches where manager is concerned with handling
specific problems and situations. This approach leads to the valuation of current market practices
for achieving specific marketing objectives. There are two types of factors which can be
controllable or uncontrollable, which has a influence on the decision making. The controllable
factors can be related to price, adjustment, advertisement etc. whereas uncontrollable can be
economical, sociological, psychological, political which can cause a tremendous change in
market. These factors which are controllable can be controlled by the company whereas
uncontrollable resist the marketing opportunities
P8.Comparison of home and inter national orientation and ways to assess competitors
Market orientation is defined as the philosophy of a company which focuses on the
process of discovering the needs and desires of customers and fulfilling it with their product mix
Home orientation is based on the aspects of two concepts which includes product and
marketing orientation, which includes business processes that kind of a product which is has a
ease in production not according to the customers whereas as marketing orientation business is
developed in the basis of the want of the customers. In international marketing there are four
concepts which are related to market orientation which are ethnocentric, Poly centric, Regio
centric, Geocentric in which ethnocentric considers that home country is the first priority and
superior, poly centric says that every country is unique , regiocentric concentrates on similarities
and differences of the world and geocentric has a world view.
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Assessing different competitors has some following criteria such as
 Determination of number of competitors
 Who are the customers and what is the benefit they are getting
 What are their key strengths
 What are their key success factors
 What market orientation they are adopting.
CONCLUSION
It has been concluded that international marketing is very important aspect for those
firms which wants to expand their business globally. There are various approaches to reach in the
market such as mergers and acquisition, licensing, joint ventures , franchising etc. Also one has
to take care of many factors which has a major influence in the international marketing.
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