International Marketing: Zara's Business Activities and Market Entry

This report delves into the international marketing strategies of Zara, a prominent fashion retail brand. It explores how marketing principles are applied to satisfy diverse consumer needs across national borders. The report examines Zara's business activities, focusing on its expansion into new markets and the role of marketing in achieving global success. It covers key aspects of international marketing, including market selection, entry strategies (such as exporting, licensing, and joint ventures), and the adaptation versus standardization of marketing plans. Furthermore, the report analyzes the marketing mix (product, price, promotion, and distribution) within a global context, addressing challenges and opportunities in today's rapidly globalizing world. It highlights the importance of understanding local market differences and adapting marketing approaches accordingly. The report also examines the various approaches to international marketing, including polycentrism, ethnocentrism, and geocentrism, offering a comprehensive overview of Zara's international marketing efforts.

INTERNATIONA MARKETING

INTRODUCTION
International marketing termed out use of marketing principle that assist to satisfy the
varied needs and wants of diverse individual across the national boarders (Cantoni, Rocha and
Righetti, 2019). It can be termed out as international procedure of planning and implementing the
formation, put value, upgrade and delivery of ideas.
The present report is based on business activities of Zara, this is fashion retailing brand
that engaged in offering fashionable commodities to customers. Currently, Zara is taking steps
towards to enter new market to enhance profitability.
The present report is based on business activities of International marketing.
Furthermore, study will establish the considerate that how marketing contributes to business
strategic world-wide context. Also, evaluation will be conducted on selection of global markets
and define the key accomplishment components. Lastly, investigation will be conducted on
features that how marketing plan needs to adapted and standardised.
LO 1
P1
International marketing termed out as the global marketing and this has earned great scope in
this competitive era. This is defined as act that mainly designed to plan, value, encourage and
directs the flow of firm belongings and services to customers. In addition to this, the scope of
global marketing enhances with international market for opening up for business (Rhoades,
Castiello-Gutierrez and O'Toole, 2019). Henceforth, universal brands reprobate in major portion
of their incomes from outside of the parental country. Additionally, factors affecting the scope of
international marketing are termed out in following context as-:
P2
The rationale behind entities to adopt international marketing is to have expansion of
business activities and to generate large amount of profitability. In addition to this, international
market offers more opportunities and growth potentially. There are number of entities that go
international to expand their business operations (Martínez Alvarado, and Flores de Rivas,
2019). Therefore, the significant aspect of inward bound markets are inclusive of creating more
profits, to undertake rival for new sales, investment opportunities, expanding, falling costs and
hiring new talent. Henceforth, the routers to enter into international market are termed out as-:
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Scope of global market-
 Imports- It is one of the calmest form of global marketing in which one country sell
commodities in the domestic market.
 Exports- This is opposite to import. Under this, entities export their commodities to
international market in which they can sell product to localities with purpose of
generating profitability (Lamont and Boduszynski, 2020).
 Joint venture- In this, two market enter into potential market. Under it, investment,
profit or losses all are absolute in terms of both worth and time period.
LO 2
P3
International marketing plays crucial role to expand the working of the enterprise. With
help of taking steps towards to internationally, the entity must have the capability to rise demand
for their goods, diminution within the economic instability from their home market, and to take
the initiatives that looks over to change new customers (Aberman, 2020).
International marketing selection process-
Marketing called out as one of the significant approach at world-wide level. Thus,
selection of market is mainly relay over the evaluation of diverse markets. Henceforth, these are
outlined as-;
 International marketing objective- At this, this is crucial to regulate or to determine the
marketing objective of the enterprise. There market must be chosen that aids to
accomplish the firm objectives in world-wide market.
 Limitations for selection- To undertake proper assessment, this is crucial to lay down the
parameters for undertaking estimation (Catanzaro, Messeghem and Sammut, 2019).
Henceforth, these parameters for selection based on firm resources, market situation and
infrastructure factors and political conditions.
 Preliminary screening- It enables to eliminates the market that do not encounter the
consideration at very outset.
 Short listing of markets- Initial transmission aids to eradicate the markets that do not
encounter the consideration. Thus, the market tends to further mark off with help of the
information that used at the initial transmission stage.
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 Evaluation and selection- At this, number of the market get short listed. Among all of
these, the best one is chosen for launching commodities by considering company
resources and external environment (Catanzaro, Messeghem and Sammut, 2019).
 Test marketing- The market can get tested on the smaller scale with help of introduction
of the product. This also assist to the produced in measuring overall response from
particular market after tested achievement.
 Commercial production- Once the produce gets tested in chosen market, the entity takes
further steps with mass production.
P4
The number of the entities are taking steps to enter into international market. Thus, the
global plan of action can be helpful in manner to extend long term success to the company.
Therefore, following strategies for entry options are outlined as-:
Direct exporting- It is termed out as to selling the commodities directly to the market that have
chosen to market. It is one of the suitable method for the big enterprise. For example- the entity
as Hilfiger can use these methods in manner as direct sales and online sales. It aids to connects
the brand directly with customers (Cantoni, Rocha and Righetti, 2019).
Licensing- It is one of the sophisticated arrangement in which entity traders the rights to use
commodities or service to another firm. This can be selected for licenses can be for marketing or
production (Rhoades, Castiello-Gutierrez and O'Toole, 2019).
Joint ventures- It is defined as the particular form of partnership that inclusive of creation of
third party that is independent managed company. Under this, two companies agree to work
together in a particular market.
Direct investment- There are number of international market that may select to get engaged in
full scale production and to carry out the marketing abroad with use of directly make investment
in wholly owned subsidiaries. In addition to this, it can be stated that the subsidiaries of
marketing activities need to make larger amount of investment. This is defined as plan of action
that is also some risky as this needs complete understanding of business conditions and customs
at international market.
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LO 3
P5
In today rapidly globalizing world, there are number of entities who aim to undertake
business activities on a global scale. Thus, number of challenges are needed to face to operate
business activities effectively and efficiently. Additionally, the working of firms in foreign
markets can be studies for periods to understand that major elements impact the choice between
resident marketing and standardized world-wide marketing. Henceforth, this can be stated the
one of core problem of international marketing is to make the selection among selling the same
commodities across all boundaries and the execution of native marketing plan of action to
answer to local differences (Martínez Alvarado, and Flores de Rivas, 2019). Thus, it can be said
that local values give the product or service a higher grade of recognition. Indeed, common
needs of the consumers may be generally valid but local effects such as faith, attitudes, and
motivation can be varying.
The global-local problem disturbs international businesses affects highly although
marketing can be defined as one of important thing to cope up with it. With the use of
standardizing the marketing mix across countries, a global plan of action leads to a huge cost
administration benefit due to economies of scale. Thus, companies at the international level may
face the greater pressure. With help of showing the showing substantial differences in the wants
of customers and the character of the individual countries
P6
Marketing mix can be defined crucial term that helps to undertake the business activities in
effective and efficient manner. Thus, components to market mix are outlined as-:
 Product- In this, the decision relates with international market enterprise follows varied
orientation such as ethnocentric, polycentric and geocentric. In the case of ethnocentric
orientation, the entity uses to produce commodities with a complete domestic focus,
whereas in geocentric orientation the commodities use to get designed by considering the
entire market as local one (Aberman, 2020). In addition to this, Luxury products,
innovative products, and technologically advanced products are marketed under
geocentric orientation. To promote the product at the international level the entity needs
to produce quality commodities so that brand image can be enhanced and entity may get
the popularity at the world wide scale.
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 Price- Under this entity use to charge fixed price to get profit margin. In world-wide
marketing, dealers adopt exclusive marketing decisions that is highly suitable for the
external market conditions. There are number of variables that hugely disturb the pricing
choices of the dealers such as the cost of manufacture, transport costs, tax and tariffs,
values of connected products etc. In addition to this, vendors take planned valuing
choices with help of making an allowance for the number of components.
 Promotion- The product promotion in the local market is usually the same but to promote
the product in the international the entity needs to adopt the approach that helps to
promote the commodities at the wider scale (Lamont and Boduszynski, 2020).
 Distribution approach- It is termed out as the approach in which marketing altercation
reflects the flow of various features in the exchange procedure between two entities at the
global scale. Henceforth, these entities will be mentioned to here as “seller” and “buyer”
for simplicity.
LO 4
P7
International Marketing termed out as the act of business activities that is mainly designed
to design, value, encourage, and direct the flow of a business’s goods and services to consumers
or users in more than one state for a profit. Thus, approaches to international marketing are
outlined as-:
Polycentrism- It is termed out as the international recruitment method in which HR can recruits
the personnel for the international business (Catanzaro, Messeghem and Sammut, 2019.). Under
this, the nationals of host country mainly get recruited for managerial positions to carry
operational activities for subsidiary firms. It is approach leads to have better productivity due to
better knowledge in terms of host market.
Ethnocentrism- This is one of the method of international recruitment in which HR recruits the
right person for the right job for undertaking international business activities. Henceforth, this
can be stated that Ethnocentrism in marketing termed out as the preference of products from
one's own home country rather than purchasing items from other countries.
Geocentrism- This is termed out as geocentric which can be termed out as firm management
looks at opportunities on a global scale. They do not put focus on the way that business gets done
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in a given country this aids to represent that how to conduct business anywhere in the world,
based on common ways of communicating.
P8
International marketing is termed out as the process of good and services in the
international environment and application of marketing principle that aids to fulfil the individual
and organisation objective in more than one country. Thus, it can be stated that globalisation,
technological advancement and availability of internet creates wide range of opportunities to
enter into international market to maximise the profit and also enhance brand image of an
enterprise (Catanzaro, Messeghem and Sammut, 2019.). This is inclusive of the uncertainty risk,
challenges and huge level of competition so that the marketers must take steps towards to
analyse the international market for taking the key business decision. It is termed out as
procedure that assist to investigate needs of customers, existed technical advancement within
international environment, the differences relate with socio-cultural of specific country in which
the marketers want to lunch the commodities. This is defined as process that looks over to
expand entity local marketing plan of action through identification of target market and also
execute the positioning strategies to get the success within international market.
Henceforth, this can be stated that there are number of the foreign marketing approaches
that is mainly depends over the components such as domestic countries, need of the
commodities, suitability of the commodities as per the requirement in foreign market, production
capacity that aids to meet out the needs and wants of the foreign markets. Henceforth, this can be
stated that there are many of the non-active direct foreign marketing, occasional foreign
marketing, day-to-day foreign marketing, international marketing or multinational marketing and
global marketing.
CONCLUSION
Hereby, it can be summarized that international marketing termed out as an ability to
market effectively to a variety of markets at both foreign and domestic. The present report has
covered the business activities of international marketing of ZARA. Furthermore, report has
demonstrated the understanding that how marketing contributes to business strategic
international context. Also, evaluation has been conducted on selection of international markets
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and define the key success components. Lastly, investigation will be outlined over the elements
that how marketing plan needs to adapted and standardised.
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