Introduction of International Marketing Strategies & Approaches for Organizations Assignment
Marketing is one of the most crucial processes that play vital role in the growth and development of any organization. It is the major factor that helps an organization in attaining the goals and objectives. International marketing has a variety of scopes and key concepts that are essential for every organization. There are various reasons of marketing products and services internationally and some of which are described in this report below. Entry in the international market is not an easy task as there are several steps that need to be followed by every organization and all those steps are discussed below. Strategies of entering in the market have different pros as well as cons that affect the organization. Four major marketing elements are also discussed in this report that is significant for domestic as well as international marketing. To understand the concept of marketing and its strategies an organization has been selected named Tesco limited. Tesco is a multinational company and Jack Cohen is the founder of this company. Headquarter of Tesco is in "https://en.wikipedia.org/wiki/Hertfordshire" Hertfordshire UK.
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P1 Analyse the scope and key concepts of international marketing.
Marketing is defined as the process of acquiring the objectives of individual as well as organization by planning and implementing the conception, promotion, pricing and allocation of goods, services and ideas. There are numerous concepts and scope that international marketing possesses and some of which are listed below.
Scope of marketing:
- Promotes awareness: Marketing is a process that enables the customers to know in deep about the product and its quality and that makes customers aware about the product as well as about the company producing this product.
- Go international: Global marketing often leads to increase the business of an organization and helps in acquiring the objectives of the company. Company can look for countries where economic conditions are quite good as compare to other so as to ensure a positive result.
- Enter in the local market of host country: Tesco can enter in the local market of host country by working along with the small scale companies of the foreign countries.
- Builds the reputation of company:Marketing in an effective manner always helps in building a good repo in the market. Tesco by its good marketing strategies increasing its value and reputation in the global market.
- Increases sales:Marketing is one of the most crucial factors that play vital role in boosting the sales of an organization. The sales of Tesco have remarkably increased after it started using effective marketing strategies.
- Fosters healthy competition:Marketing in a proper and appropriate manner always helps in fostering healthy and good competition (Steinberg & Greene, 2015).
- Use 7 P’s of marketing: The 7 P’s of marketing always helps an organization to enhance its marketing strategies. This helps the Tesco to analyse the environment effectively and take decisions as per the requirement. The 7 P’s are: price, product, place, promotion, place, people and physical evidence (com., 2013).
Concepts of marketing:
- Needs: Needs are the most common features that an organization must consider before entering in international market. Needs are of different types such as physical needs, individual needs and social needs.
- Wants: Human wants and desires are infinite, and the products are manufactured in order to fulfil the expectations of customers by satisfying their wants.
- Demands: Demand is basically the requirement of any product or service in the market. It is the responsibility of Tesco to underscore the demand of its products in the market.
- Self-reference criteria: The Self Reference Criterion is an insentient positionto one's own experiences, knowledge and cultural values as a ground for making decisions. This helps the employees of the Tesco Company to do work as per the culture of the organization.
- Globalization: Globalization will help the company to expand its business in foreign countries and increase its revenue. International business often leads to provide a large amount of money to an organization.
- Standardization: The Tesco Company needs to standardise its products and services in order to acquire its main goals and objectives (com. 2013).
- Products: A product or goods can be defined as something that is manufactured so as to fulfilthe needs of the customers (Steinberg & Greene, 2015).
- Values: Value is something that a customer wants in response to the money he spends for a product or service.
P2 Explain the rationale for it to want to market internationally and describe the various routes to market the organisation can.
Marketing internationally has been an important factor that enhances the growth and development of different organizations and there are number of reasons why Tesco want to market internationally. International marketing has various advantages and disadvantages also.
Reasons to enter in global market:
To go global: International market helps the company to expand its business globally and increase sales and revenues. Nowadays MNC’s are the companies earning on a very high scale.
For growth and profit: Growth of the company and increasing the profit percentage is the main reason why companies often tend to move in international markets. It increases their brand value, increases the revenue of the company, etc.
There are many reasons why international market does not function and some of the major reasons are:
Political condition: Political stability is very important for the functioning of an international market. Any fluctuation in the political condition often leads to the failure of proper functioning.
Economic fluctuation: Economic condition of international market affects the functioning of the market and this affects the sales and revenue of the company.
Social factors: Social and cultural factors also play vital role in affecting the functioning of international market.
Describe routes to market:
Low risk:Dealing withExporters and Agencies often lead to lower the chances of risks and helps in entering the international market effectively. Their impact on the business of Tesco Company is not very huge.
High risk:Joint venture and foreign manufacturers are very hazardous routes as the chances of risks are higher in these routes. These routes may lead to affect the business of Tesco Company on a large scale.
There are numerous challenges that Tesco faces while marketing its products internationally and there are various opportunities that come up by marketing globally.
If the political condition of a foreign country is apposite as per the requirement of Tesco, it helps in boosting the sales and market of company.
Improper political condition often leads to affect the business of Tesco globally.
Tesco earns a large amount of profit from countries where the economic conditions are well enough (Uspsdelivers, 2016).
In Underdeveloped or developing countries Tesco often faces complications in deciding the price.
· Reputation management
Tesco creates a good reputation in the market where demand of grocery products is high.
Due to its high price of products company faces difficulties in building a good reputation in poor countries.
It becomes easier for the Tesco company to promote its products and services in a country where a large amount of people uses social websites.
Company has to spend a large amount of money to promote its products where social websites are ban or people don’t often use (Marketingmix, 2017).
P3 Evaluate the key criteria and selection process to use when considering which international market to enter.
There are various steps that are chosen by Tesco Company while entering the international market and some of the most crucial ones are listed below:
Market size: The size of the market and availability of resources in that market must be found out before entering in any of the international market.
Competitors: Competitors availability and their value in the market must be found out before entering the global market. This will help the Tesco to work as per the situation and as per the competition of market.
Legal requirement:Legal requirements and legislations should have to be considered before entering in an international market. These are the factors that affect the growth of an organization so Tesco should take care about these factors (Tesco.com. 2013).
Costs:Costs of products and services should be considered before moving towards any international market. Price is something that play vital role in any of the market whether it is national or international.
Infrastructure:Infrastructure of the country and the economic value of the market should be scrutinized before entering in that market.
Customers’ types:It is the responsibility of Tesco to identify key customers and bring out policies and procedures to fulfil their needs and demands (Londhe, 2014).
P4 Explain, using examples, the different market entry strategies, including the advantages and disadvantages of each.
There is a plethora of market entry strategies that play vital role in Tesco Company but all of them have some advantages and disadvantages also. Some of the pros and cons are listed below:
· Low cost of entry
· Chances of monetary risks are low.
· Totally dependent on the national intermediary.
· Inadequate knowledge of foreign market.
· Monetary risks are moderate.
· Marketing cost is low as compared to others.
· Transportation cost is very high.
· Numerous barriers can be seen in trade.
· Funds commitment is low as compared to other.
· Can be considered as subordinate of a foreign market.
· Profitability is low as compared to other strategies.
· The cost for entering in the market is low.
· Chances of quick foreign extension.
· Extra cost is required for controlling.
· Apposite qualification is required.
Based on the market evaluation criteria and the strategies of entering the market there are some recommendations that Tesco could follow in order to succeed in the domestic as well as international market.
- Tesco must underscore the host country effectively before entering in that.
- Identify the value of marketing mix in the host country so as to make effective strategies to decide the price and the quality of product in that country.
- Scrutinize effectively the pros and cons of each and every marketing strategy so as to avoid any damage or failure in future.
- Analyse each and every factor such as political, economic, cultural and so on before planning the expend business in any other nation.
Marketing strategies if adapted effectively play vital role in the growth and development of an organization. There are numerous ways in which Tesco can adapt its marketing strategies effectively for various markets.
- Marketing research: Research of market is very important before taking any decision related with marketing mix. Tesco regularly identifies the needs and wants of customers by research and works in order to fulfil them.
- Pricing: Pricing is an important factor that directly impacts upon the sales as well as on the profit of the Tesco Company (Educba, 2018).
- Advertising and sales promotion: Promotion and advertising play vital role in increasing the sales and revenue of the company as it helps the company to reach to its customers by the mode of advertisements.
- Financing: It is also an important factor as adequate finance is required for marketing purpose and this can be achieved by the shareholders, banks, etc. (Ghosh, 2016).
P5 Present an overview of the key arguments in the global versus local debate.
There is a plethora of arguments going on in the local as well as international debate related with marketing strategies and their execution. Some of the main arguments are listed below:
- The national and international companies now totally depend on developing a pool of talented people who can operate domestically and globally but the main topic of arguments is should they be recruited internationally or domestically.
- International managers exist nowhere, and it is only the experience that can help a person to manage marketing internationally. Still there are some people who are extra talented to fix in any culture, but the problem is that they are very few.
- Four P’s of marketing mix is also a major topic of discussion for which there has been considerable hostile debates. It has been quite confusing for the companies to decide all the four components of marketing mix effectively.
- HOLLENSEN’S GLOBALISATION MODEL:
The model of hollensen’s demonstrates that preparation for internationalization and industry globalism are proportional to each other. The above image of hollensen’s model shows that preparation stage includes three stages and they are immature, adolescent and mature whereas globalism includes three market and they are local, potentially global and global. All the nine steps play vital role in entering in any of the international market.
P6 Investigate how the product, price, pricing and promotional distribution approach differs in a variety of international contexts.
These are the four major approaches that play crucial role in any of the organization and it differs nationally and internationally.
- Product:The quality of product varies as per the requirement of the customers and on the basis of scale of economy in any country. Countries where the economic conditions are good enough, the quality of product is good whereas in poor countries customers need to compromise with quality of product.
- Promotion:Promotion is also based on political, economic and so on factors. Tesco promotes its products online in countries where a large number of uses social websites. In countries where there is a ban on social websites Tesco need to spend money to advertise its products.
- Price:Price is one of the most important factors in marketing mix as it decides the sales of the company. Price of a product is being fixed based on the economic condition of a particular country.
- Place:Place is decided based on the accessibility of customers to that place so that customers can easily purchase the products.
Tesco is a multinational corporation and hence it requires an international approach as it will enhance the growth and development of company worldwide (Marketingmoves, 2013).
Tesco can use global approach of marketing when it needs to promote its products on an international level and want to exceed its business globally. It will help the company to overcome any barrier and achieve its goals and objectives.
Tesco can adopt local approach when it needs to increase its business in the domestic market and want to augment its image and reputation in the market. It will help the company to beat its competitors and reach on the acme of success (Freedmaninternational, 2017).
Adaption of marketing mix in any of the organization is based on various factors such as conditions of market, competitors, shareholders, economy, politics, etc. These are the factors that bring changes in the adaption of marketing mix.
Tesco should place or distribute its products where there is an availability of potential customers who can purchase the goods products by Tesco.
Tesco should make products as per the expectations of national as well as international customers as it is a multinational corporation, so it is very important to keep in mind the needs of international customers also.
Price of the product should be fixed by Tesco based on the economic condition of a country so that the customers can easily purchase the product.
Marketing mix is a significant model in any of the organization which play vital role in promoting the goods and services of the organization. It consists four major components and they are product, price, place and promotion. All the four are essential for effective marketing.
- Product: Product is defined as an item that is manufactured so as to satisfy the needs and wants of the customers. It is the responsibility of Tesco Company to ensure the quality of product and raw material used in manufacturing the product. A research is mandatory before producing any product as it determines the demand of product in the market.
- Price: It is one of the most important components of marketing mix as everything depends on price and cost of the product. Tesco uses this component so as to identify the survival as well as profit of the company. It is the responsibility of the company to decide price of any product based on the market research.
- Place: It is defined as the component in which the distribution of product takes place and it is mandatory for the company to decide place which is easily accessible to its potential customers and buyers. There are different types of distribution strategies that are used by Tesco and some of which are exclusive distribution, intensive distribution, franchising, selective distribution, etc. (Londhe, 2014).
- Promotion: Promotions is also an important factor that play vital role in boosting the sales and revenue of the company globally. This component consists of different elements such as advertising, sales recognition, public relations and sales promotion.
P7 Explain and analyse the various international marketing approaches your client organisation can adopt.
There are a large number of ways in which Tesco Company can adopt different marketing approaches and which could influence the growth of the company globally (Martin, 2016). Some of the most important marketing approaches that Tesco can adopt are:
Centralised: Centralised approach involves the preservation of authority and power by the help of decision making and strategic planning under the guidance of top management. This approach also involves systematic and reliable stipulation of authority.
Decentralised: This approach involves distributing the responsibility to the different levels of employees based on their experience and requirement of tasks. This approach is free and open. It is relatively faster as compared to centralised approach (Martin, 2016).
Open international markets step by step,one country at a time or all countries at once:This is the approach in which the total market is open and authority is being provided to either one country at a time or to all countries at a single interval of time (Ghosh, 2016).
P8 Compare home and international orientation and ways to assess competitors, outlining the implications of each approach
International orientation is basically based on four approaches and they are:
- Ethnocentric approach:In such approach the standards maintained by organization in home country is considered as default and all subsidiary need to follow these standards. In this approach the product, price and promotion remain static and does not change (Westjohn, et. al., 2016).
- Polycentric approach:In this type of approach, Tesco gives equal importance to the national market of every country. This type of approach is best suitable for countries with fluctuating economic, cultural and political conditions. Execution of any strategy under this strategy is quite easy as compared to other approaches (Ayuso&Navarreteâ€Báez, 2018).
- Regio-centricapproach:In this type of approach Tesco find countries where the economic, political and cultural conditions are similar in such a manner to satisfy the wants and needs of potential customers.
- Geocentric approach:This is the approach that fosters the international marketing, and this doesn’t compare nationality with any superiority. The major goal is to find the best men and all the major problems and issues are solved under several political and legal limitations (Shoham, 2015).
There are numerous ways in which competitors can be assessed and all of them have equal importance. Porter’s five forces analysis is one method that is used by Tesco Company to analyse its competitors.
Marketing consist of various approaches that play a significant role in the growth of an organization and some of the approaches are:
- Institutional approach: This is very crucial approach as it focuses on mediators such as stakeholders, importers, exporters, wholesalers, agencies, etc. These are the people who are involved in the marketing process (Steinberg& Greene, 2015).
- Functional approach: This approach includes numerous marketing functions and the major ones are selling, buying, storage, allocating, promoting, standardization, packing etc.
- System approach: This approach focuses on the relation of company with its marketing functions. Some of the major functions are production, manufacturing, pricing, marketing, etc.
- Management approach:This approach focuses on how the managerial tasks are performed in the organization and how they could improve.
It can be done in various steps based on the requirement of an organization. Some of the major steps are:
- Identification of main competitors
- Analysing and comparing competitors’ content
- Analysing the SEO structure of competitor
- Examine the interaction of competitor in social media
- Determine the areas of improvement (Marketingmoves, 2013)
It is the main responsibility of the management of an organization to structure the organization in such a manner to maximize the prospects and opportunities. There are various methods that can be used by an organization to structure the organization effectively (Hult, et. al., 2018).
Tesco can use this method to structure the company and to attain the goals and objectives of the company.
· It is one of the most powerful brands in the whole world.
· It has 6784 stores worldwide.
· Tesco has won plethora for awards for its excellent products and services.
· The debt of the Tesco Company had affected the profit margin of the company.
· Lack of experience is also another issue that affects the business of Tesco Company (Bhasin, 2018).
· Tesco can ensure the boom in the economy of the company as it is amongst the top three largest grocers in the world.
· IT sectors could play an effective role in the growth and development of Tesco Company.
· Due to the economic fluctuations in UK the market of Tesco could also affect.
· Profit margins can be affected the rising cost of food material.
Marketing as discussed above is very important and significant process that helps an organization in promoting its products and services. There are various scopes and concepts of marketing that have been explained above. Tesco Company has been selected to understand the concept of marketing and its strategies. Reasons for using marketing strategies have been discussed above and what role these strategies play also discussed above. To enter in a market there are various steps that an organization need to follow and all of them discussed above in relation with Tesco Company. Pros and cons of marketing strategies have been described in detail that shows how it has positive and negative aspect. Marketing has different elements and their adaption is very crucial so the adaption process in relation with Tesco has explained above. Approaches of marketing and their impact on the goals and objectives of Tesco have been discussed. Four major P’s of marketing also discussed above.
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