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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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:
Concepts of marketing:
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).
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).
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.
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.
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 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.
These are the four major approaches that play crucial role in any of the organization and it differs nationally and internationally.
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.
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).
International orientation is basically based on four approaches and they are:
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:
It can be done in various steps based on the requirement of an organization. Some of the major steps are:
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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