Analyzing International Marketing: Scope, Trends, and Strategies

This essay provides a comprehensive overview of international marketing, beginning with its scope, which includes importing, exporting, contractual agreements, joint ventures, and fully owned manufacturing. It then delves into the rationale behind organizations seeking internationalization, such as expanding market size, avoiding local competition, earning higher margins, and accessing global resources. The essay also highlights key global macro and customer trends, including globalization and changing consumer behaviors. Furthermore, it examines marketing's role in contributing to business strategy within an international context, using Econsave as an example. Finally, the essay explores the factors influencing internationalization, such as company characteristics, industry factors, external influences, and networking, emphasizing the importance of a well-defined international marketing strategy to meet organizational objectives. Desklib offers more resources including past papers and solved assignments for students.

Scope and definition of international marketing.
The first scope of international marketing is important. Importing is the easiest way to
internationalize a company. International companies can import things and resell them in
their home country’s market. But this can only happen when the demand is high in the
domestic market. Also, companies should localize certain products or meet the restrictions of
certain countries so that the product can successfully be imported[Citation error].
The opposite side of importing is export. Exporting is also a scope of international
marketing. Companies can export their product towards other countries to enlarge their
market and increase their company’s reputation. Same as importing, exporting has its own
restriction. For example, if MacDonald wants to export their product or enlarge their market
to Malaysia, they must get a halal certification first before they export their product into
Malaysia(The Scope of International Marketing | Marketing Lessons, 2017).
The next scope of international marketing is Contractual Agreements. Contractual
agreement is an agreement that is made between two or more parties. This agreement is
legally enforceable and it allows companies to expand their market toward other countries.
With this contract, companies can grow and expand their market and customer base.
Companies can grow rapidly by making a contractual agreement with partners
overseas[Citation error].
Apart from that, Joint Venturing is also one of a scope of international marketing. Joint
venture is a business arrangement that is made by two or more parties that have the same
objective. Local companies can partner with foreign companies to get benefits. For example,
a local company can partner with a foreign company because the foreign company can help
us to know foreign market’s dynamics and it is beneficial to our local company to survive in
foreign market[Citation error].
Furthermore, I would like to talk about fully owned manufacturing. In order to stabilize our
market in foreign country, it is important if we fully own manufacturing at foreign country.
This could help companies to control the quantity and quality of product that they need to
produce and companies can also sell their product easily to the country nearby.
Last but not least, the definition of international marketing is to satisfy and fulfill needs or
demand from different countries and different people.
Rationale for why organizations are seeking to internationalization
The reason for Econsave seeking internationalization is to expand the market size. This is
because the cost of expanding market size in the local market is more expensive than

expanding in the foreign market. In a relatively remote area of foreign country, it usually
lacks a shopping mall that sells daily supplies, although it must be in a nearby city area. If
Econsave open subsidiaries in this kind of area it can easily expand their market size.
The second reason is to avoid competing with local companies. This is because as
competition intensified, the company inevitably fell into a price war. When the price war,
company’s profits will be seriously affected. So, to avoid this kind of situation, companies
will tend to change their target market to foreign market.
The third reason is to earn high margins and profits. Companies can expand their market
in those areas that are in high demand to what the company offers so that the company can
get high profit. For example, Microsoft sells its products to the USA due to usage of software
there and computer operations there(Happy, 2015)
The fourth reason is to be close to the supply source, benefit from global sources advantage
and gain flexibility to product sourcing. Companies that establish its operations next to
suppliers can get the raw material flexibility and decrease the production cost. For example,
Ford established its operation in Dubai due to petrol affordability which means people are
more likely to buy cars there(Happy, 2015)
Key global macro and customer trends
Globalisation is the growing integration and independence of economics and cultures
and involves increased trade and increased movement and capital and people. It results
in large increases in trade between countries and large increases in money moving between
countries and in foreign direct investment by governments and transnational corporations.
There Are also increasingly similar products and services being sold across the world and
large increases in outsourcing to different countries for components or services. It can
increase in international travel and instant communication across the world. This can
increasingly similar cultures and attitudes across the world and converging income levels
across the world. In particular, economic globalisation includes decreasing barriers to trade,
increasing ease of moving capital and money across countries and increased incentives for
foreign direct investment. Globalisation is a developing phenomenon. It brings great
opportunities and also more risks as businesses and their competitors are increasingly able to

operate in more than one country. Econsave’s opportunities are falling tariffs and other
barriers to trade mean it is cheaper and easier to sell to other countries. Costs fall as more
efficient, lower-cost labour and materials can be accessed, so it’s product can be priced
lower. This can let Econsave increase the outcomes and access to information sources mean
consumers are exposed to marketing activities and are more able to buy. It can expand the
markets to other countries, for example like in Brazil, China, India and Africa. Econsave also
has internet-based marketing that enables international marketing, even for smaller
businesses and lets global branding become possible. This has risks or threats that small or
nationally based businesses face increasing competition from global businesses. Global
businesses have to fund ever more expensive marketing campaigns and people focus on their
own culture and reject global products.
Econsave can increase economic collaboration by increasingly acting together to bring free
trade as international governments agree to remove barriers to trade by negotiation, for
example, through the World Trade Organization. This creates increasing opportunities for
businesses to engage in international marketing activities. It also leads to trade blocs that
have low or no tariff or non-tariff barriers between members. However, there may be high
barriers to trade with non-members. These blocs include the Association of Southeast Asian
Nations(ASEAN). Businesses looking for international markets must research these blocs and
their rules closely when choosing where and how to market.
Their customer trends is to become the front-runner supermarket of Malaysian in which
consumers can obtain great bargain and saving from grocery shopping and strive to offer our
customer with wide range of groceries at the lowest price possible without compromising on
the quality of service and customers’ comfortability
Marketing’s role in contributing to the business strategy in an international context.
Formulating a global marketing strategy may be an important fund for Econsave.
Formulating a variety of aspects of global marketing strategy is the most important thing
for companies to compete globally. For many companies, marketing on a global scale is
essential. When companies are marketing globally, they increase customer base, traffic, and
baseline. Increasing the number of customers the company has is a valid way to increase
sales(Importance of Global Marketing Strate...).
Developing an international context marketing strategy can help Econsave ‘s business in
many methods. The first method is to promote the global market to improve the efficiency of
Econsave products and services. As the company grows and learns, new and improved
products or services will become more to provide customers with better choices and
quotations, the company should share their improvements with a wider audience. By
formulating a global marketing strategy(Importance of Global Marketing Strate...).
Over the past few years, strategic marketing has become increasingly popular within the
organization. However , there is still some confusion about the accurate meaning of strategic
marketing and its role in the organization.Econsave has the largest and most extensive

network of branches in all major towns and cities, which is unique to any other supermarket
or hypermarket operator. In addition, Econsave has a strong influence nationwide and it is
always looking for new opportunities throughout Malaysia. Econsave currently operates
supermarket chains in Malaysia. Econsave Group currently has 50 retail stores in Malaysia
and they are looking for people who are affectionate about the grocery industry and want to
be part of a growing company. However, Econsave’s vision is to create a management team
of dedicated professionals who have strong integrity, high professionalism, and emphasis on
excellence and a dynamic decision- making process(Admin 2019).
Econsave’s advantage lies in having its own strong brand and valuable services. Compared
with other large companies, econsave’s coordination is much worse, which makes them more
adaptable compared with other companies. Econsave also has a competitive price strategy,
and concentrated price cuts allow it to attract more consumers through competitors and obtain
the quantity that supports the lowest price. Econsave has a larger business that is not only
concentrated in major cities, but also operates in almost every region, and has more than 60
outlets in Malaysia(Admin 2019).
Factors That Influence Internationalisation.
Developed countries are already discussing factors affecting SMEs, but they are still trying to
find empirical evidence. It aims to understand the influencing factors that affect the
internationalization of Malaysian SEM, and identify the most influential factors and
determine the most influential aspects. They use Delphi technique through telephone
interviews and also E-mail to do this exploratory. The participants include panel 32 experts,
academicians, policymakers, government agencies and Chamber of Commerce. The
influencing factors they found were company characteristics, industry factors, external factors
and incentive factors. The Internet is the most influential factor. Malaysia originated from the
factors affecting the internationalization of SMEs. In short, they have some insights into the
internationalization process of SMEs, and put forward some suggestions for future

research[CitationError].
The first factor is the motivation for internationalization, and the second factor is the
characteristics of the company, the third factor is industrial issues, the fourth factor is external
influences and the last factors is networking. The percentage of consensus is in the diagram.
First, the experts identified 44 projects, which is the motivation and reason for the
internationalization of Malaysian SMEs. These motivations can be divided into 6
subcategories. 69% of experts believe that domestic conditions are the most important
influencing factors, of which 11 projects, 50% of resources seek conditions 9 projects, 50%
globalization includes 4 projects, 4 projects that comply with the conditions of suppliers
31% , Survive 25% to survive 5 items.[Citation error]
The second factor requires the identification of two important drivers. The first company
is the company itself, such as the company's human and other resources, capabilities and
reputation. The second key feature of top management. According to the percentages and the
items in the diagram these findings suggest strong agreement among the experts that top

management characteristics, for example the interpersonal skills and background have a
significant influence on the firm’s choice to go international.[Citation error]
The third factor is the industrial factor. Malaysia is a temptation for SMEs. Among them,
50% mentioned that our sales economy has improved, and 38% believe that the nature of the
business sector makes it easier for them to enter foreign markets. The survey results also
indicate the industrial and industrial nature of "halal food" and other wood products.
The fourth factor is the external factor. SEMs need to be alert to foreign and local political
and 295 Influential factors for SMEs. The highlight of being aware of the external
environment is globalisation of enable take part in international outsourcing and cross border
alliances In product reduced transaction costs. Communication, international transportation
and logistics have facilitated rapid growth internationally.([No title], n.d.)
The last factor is networking . In global markets, networking played a remarkable role by
linking SME into the global market. 100% are agree the importance of institution.81% are
personal relations and 75% referred to the importance of business not matter small or foreign
Setting an international marketing strategy to meet objectives.
By now, it should be obvious that companies and organizations that plan to compete
effectively in the world market need a clear, prominent international marketing plan
that must be based on a complete agreement on the market in which the company is
introducing its products. Therefore, despising international marketing is to ensure that any
international strategy should be studied in detail, and the knowledge required to gain a
competitive advantage should be understood and accurately assessed.Therefore, the decision-
making arrangements in the international market are much larger than those in the domestic
market.
First, the product and promotion is the importance of an international marketing
strategy. One product, one message, all over the world. Although many customers or
consumers believe that this will be a strategy that many products will recognize in the future,
in reality, only a small number of products may claim to have achieved this goal. Product
adaptation and promotion expansion.This strategy is used if a promotional campaign has
reached international appeal, but the product needs to be improved because of local needs.
For example, while Econsave and Aeon shopping malls aim at everyday produce daily
necessities for the mass market in the advanced countries, in less-advanced countries they are
perceived as places for special time shopping, and are beyond the reach of the poorest

segments of the population. Second, due to exchange rate fluctuations, prices, government
involvement and transportation requirements, the pricing of foreign products has become
perplexed. The common strategy is for sellers to set lower prices for products in overseas
markets. Because many overseas countries have low income levels, this strategy is stable, and
lower prices help build market share.
1. Investigate factors that motivate international pricing, such as cost structure,
product value, market structure, participant pricing levels, and various environmental
constraints.
2. Checking the impact the company strategies should have on pricing policy.
3. Evaluating the several strategic pricing options and selecting the most suitable
approach.
4. Handling prices and financing international transactions.
Last, distribution channels are a way of distributing items from manufacturers to end users.
Logistics or logistics management involves planning, applying, and controlling the physical
flow of materials and final attributes from the original point to the point of use, with a view to
profiting to meet customer needs. There are basically three channels of communication
between buyers and sellers. The first link is the seller’s headquarters organization, which is
responsible for managing the channel and acting as part of the channel itself. The channel
between countries represents the second link. They are accountable for getting products to
overseas markets and payment in return. Finally, the third link is the channel structure within
countries, which allocates the products from their point of access to the final consumer.

PART A
Product adaptation: global vs local.
Product standardization
Product standardization refers to the process of maintaining uniformity of products and
services sold in different markets. For example, if a company decided to standardize the
products, then the products will use the same materials and process to produce the products.
The examples of the industry that use the standardization are piston industry and nut and bolt
industry. It is a type of strategy that is used in the global market(Patabendige, 2019).
Advantage of the standardization strategy. Disadvantage of the standardization strategy
● Reduction of costs
In the standardization, all of the
products use the same material to
provide. So companies can purchase
materials in large quantities and get
discounts from the suppliers.
Econsave as a supermarket, it can
produce standardization products
that have their brand and reduce the
reliance on the suppliers.
● Stagnation
When a company keeps producing a
product, it will cause the company to
maintain its position in its industry.
So, when companies try to
standardize products, they need to
try to adjust as the environment
changes.
Because Econsave focuses on its
goal to let customers pay less yet to
get the best value of a product cause
people just treat it as a supermarket,
restricting the potential of Econsave
to move to another position.

● Production efficiency
When Econsave’s products are
unified, the production process
becomes highly efficient because of
favorable factors such as mass
production, labor specialization, and
production process automation.
● Less choice to consumers
Because the products are
standardized, consumers did not
have too many choices. It may cause
the consumers to choose another
company’s products that meet their
needs.
● Obtain a high quality products
When the products are standardized
consumers can obtain relatively
high-quality products and companies
can build up the word of mouth.
● Cultural differences
Even in the era of globalization,
there are cultural-based differences.
For example, a fast-food chain
specializing in non-halal food must
adapt to the local market before it
can make a significant profit in Islam
countries.
Products adaptation
This is the strategy most commonly used by multinational companies (MNC). This product
adaptation refers to the process of modifying existing products to enter each market. This
product adaptation will modify certain aspects of the products such as packaging, design,
ingredients and language to meet the needs of different consumers from different
markets(Patabendige, 2019).
Advantage of the adaptation strategy Disadvantage of the adaptation strategy
● Many choice to consumers
When Econsave uses the adaptation
strategy, it can provide many choices
to consumers and to maintain the
consumers loyalty.
● High-costs
Every time entering a new market,
Econsave needs to spend funds on
research for the use to adapt
products. Besides that, because of
using different materials, companies
cannot get discounts by purchasing
in large quantities.
● Sales increasing
Because the products adapt to the
local needs, the sales keep
increasing.
● Cause the power decentralization
Because of the need of the people
within the company that are
understanding the local culture ,
companies are unavoidable to recruit

the local manager and give them
power for making decisions.
● Excellent local image
Because of the products are meet to
the local needs, the local people will
have a good image to the company,
● Time consuming
Companies need time for collecting
the information about the target
market’s local cultural tradition,
religion, taboo and doing the
research for the use to adapt
products.
PRICING IN INTERNATIONAL MARKET
The pricing is based on approximation, appraisal, size and quality. The price in the bazaar
is the trade value of outputs and ministry expressed in denomination of species. Accordingly,
pricing simply artifice to fix the value for an output or ministry. It is a venture that needs to
be recurrent and is a successive process.
Pricing is one of the most significant components of marketing goods mix, generates
cash and determines a firm’s survival. Pricing of the marketing mix is a necessary and
most troublesome verdict in marketing because of increased emulation, fabricate activities,
geographical trading blocs and transient exchange rates. Customers have a distinct perception
of the goods depending on the price. Therefore, pricing goods for customers is a troublesome
task, mostly because a high price may affect negatively about goods.
The ways of pricing a goods are premium and penetration pricing, price skimming,
economy and psychological pricing, product bundle pricing. However, the circumstances
are further complicated when it comes to pricing for universal markets. Setting prices for
worldwide markets is not an easy path. Decisions with regards to goods, pricing, and
distribution for worldwide markets are unique to each nation. Other elements like the ROI,
market stabilization, requirement and emulation-led pricing, bazaar penetration, money
recovery, firm and goods elements, bazaar and environmental elements.
Goods have to be distributed through the most appropriate channels and priced according to
local market environment conditions. Local bazaar conditions may be different and firms
have to adapt to the needs of local consumers. The PEST (Political, Economic, Social,
Technological) factors have been used to make sure the foreign bazaar occasions.
Environmental monitoring should continue throughout the commerce cycle. Since bazaars
must do with the law, an understanding of governmental guidelines and the process by which
it is created is central to effective marketing decision-making. Worldwide firms must know
the policy-making affair and distinct regimentation of rules, and bazaars must also make sure
the common orientation tendency and district juridicality that affect the action of their
commerce. The main elements of marketing schemes are essential to consumer contentment,
monetary ability, and commitment.
Political Factors

Pricing is influenced by juridical and regulations which necessitate goods modifications, in
compliance with health and security standards, environmental regulations, and calculation
systems. Government orientation affect and economic frameworks.(Pricing in International
Marketing Environment - Global Marketing Professor, n.d.-a).
Social Factors
People that do not have the same tastes, purchase different goods and answer in not the same
paths to the same ministry or goods. Demographic fabric of a foreign bazaar should be
concluded. The prescription of citizenry in main western bazaars, and the increase in
citizenry in several nations such as China, is another continuing fabric that will affect
worldwide marketing. When making the cost for worldwide bazaars, one has to take into
consideration common material literacy, dialect, civilization and belief.(Pricing in
International Marketing Environment - Global Marketing Professor, n.d.-a).
Technological Factors
Technological change is another dynamic but ongoing phenomenon. A perfect example is the
internet. The Internet allows online contact with consumers, suppliers, and partners and
subsidiaries around the world, but it may also increase the occasions for existing competitors
and openings for new competitors. Pricing is a strategic choice, and it will be partially
influenced by environmental elements(Pricing in International Marketing Environment -
Global Marketing Professor, n.d.-a).
PRICING STRATEGIES
Price is the aggregate of money charged for a goods or ministry. Price is total of goods,
ministry, benefit and variety. Price concludes the be priced at producing goods, give any
needed ministry that may accompany the goods, the total of benefit in order to maintain
commerce. Firms are trying to delineate the greatest classification or the lowest cost(Pricing
in International Marketing Environment - Global Marketing Professor, n.d.-a).
Pricing strategies:
Economy and Premium
Premium pricing is adopted when there is a substantial competitive advantage, and the goods
or ministry is unique and the economy pricing strategy is adopted.
Penetration or Low Price
Low profit margin will penetrate the market. Penetrating the market with an exceptionally
low priced item makes a broad consumer base. It also makes high value-for-the-dollar to the
consumer. Penetration is used when prices are set first low in order to attract new consumers
and to gain market share, and then the price is increased after the market share has been
achieved. To penetrate the market and earn market share, worldwide businesses set a low
price in comparison to other competitors(Pricing in International Marketing Environment -
Global Marketing Professor, n.d.-a).

Competitor’s Pricing
To attract the largest number of consumers and generate consistent turnover, it may be
necessary to set prices not too high, not too low, just in line with other competitors. Prices are
aimed at competition and profits are acceptable. In the long run, no single pricing strategy
will always work best, and producers should be prepared to adjust to any occasion or threats
that may arise in the ever-changing market(Pricing in International Marketing Environment -
Global Marketing Professor, n.d.-a).
Marginal Costing
In highly competitive markets, some firms may want to consider turning to marginal costing
in order to ensure that their goods are competitively priced. Marginal costing ignores the
fixed cost incurred by firms. Ignoring fixed prices will naturally reduce total costs, enabling
lower prices to be set. Firms should not use this method of pricing(Pricing in International
Marketing Environment - Global Marketing Professor, n.d.-a).
Pricing is probably one of the arduous situations for a decision maker, when trying to price a
goods or ministry. It may include the cost of producing and providing the product, the benefit
that you need to make to stay in the commerce.
The use of new technologies that support international distribution and promotional
strategies considering hardware and software.
Computerized system
Computerized system is a process, or a business that is done by computer. Compared with
using the same system to perform the same task, the computer system can perform specific
tasks more accurately and faster. Computerized system is useful to store huge information
such as stock, employees’ information etc. For example, Econsave uses a computerized