Unit 50: International Marketing assignment Sample

Introduction of Unit 50: International Marketing Assignment

International marketing is termed as a process of promotion and selling of services and products to foreign consumer base. There are multiple reasons behind global market expansion such as increased sales and growth, wider exposure to market opportunities and strengthen brand image and competitiveness. This assignment will be based on different vocational scenarios that comprises of case studies of Mountain Hardwear, Gap Inc., Adidas and Pepsi-Cola based on the international marketing concept. This report will analyse about effectiveness of marketing to international business strategies along with the selection of international market entry strategies and key success factors. Apart from that, debate on local vs. Global market will be conducted along with the discussion of elements of marketing plan. At last, different marketing approaches for global, multinational and transnational context will be analysed in this assignment.

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LO1

Meaning, scope and concepts of international marketing

International marketing is defined as the process of selling and promoting services and products to global customer base (Geeks for Geeks, 2024). In other words, it is defined as exchange of services and goods across national borders to fulfil requirements of global customers. It involves the process of distribution, advertising and promotion of goods and services in international market. Exporters, service companies, importers and multinational corporations (MNCs) are the major participants in international marketing (Katsikeas, Leonidou and Zeriti, 2020).

There is a wide scope of international marketing as it encompasses with the key areas of market entry strategies and market research. International marketing offers divers range of information that is crucial for the export planning within global market. It involves with analysing conditions of global markets, crucial for making informed decision making for Mountain Hardwear (Paul, 2020). It is a premier brand, established in 1993 has specialization in high performance in outdoor gear and apparel. With adequate market research, Mountain Hardwear can seek an effective strategy for the market expansion in global market. Along with that, brand analyses and evaluates strategies of franchising, exporting, joint venture or licensing. 

Besides that, scope of international marketing involves process of promotion and communication with the development of effective marketing strategies and campaigns (Ali and Anwar, 2021).

This enables the Mountain Hardwear to resonate with the global customers by understand their needs and interests, helps in maintain brand image and consistency. Along with that, scope of international marketing comprises of determination of pricing strategies to maintain its power, cost and position in the competitive global market. This can enable Mountain Hardwear to solidify its market position as a leading international player within outdoor gear market with the formulation of effective pricing strategies (Ipek, 2021). At last, international marketing has a wide scope of product adaption that enables the Mountain Hardwear to modify its services and products based on the needs, preferences and interest of the global customers. To accomplish this, brand can adopt and modify changes as per the regional needs to attract diverse range of foreign customers (Kumar, 2024).

The key concept of international marketing involves identification of customers need, promotion and communication strategies and understanding of market culture and trends. International marketing concepts comprises scope of market research that enables the Mountain Hardwear to identify and understand needs and preferences of customers (Rana et al, 2021). Furthermore, it guides the organization to enhance its outdoor experience through superior craftsmanship. Besides that, concept of international marketing further allows the Mountain Hardwear to adopt communication and promotion strategies with the implementation of effective marketing strategies to attract diverse range of customers (Paul, 2020). Through maintain interpersonal communication with global customers, Mountain Hardwear can identify and divides international market into different market segments.

In addition to that, international marketing concept enables the Mountain Hardwear to promote its brand through leverage of sustainable business practices by reducing the adverse environmental impact (Onyusheva, 2020). This leads to promote positive brand image within global customers, leads to promote competitiveness and number of customers.

Rationale for marketing internationally

There are multiple reasons behind market expansion of Mountain Hardwear, which are as follows:

• Improve revenue opportunities: With the international business expansion, Mountain Hardwear can grab an excellent opportunity of enhancing its profitability in global business market. International market expansion offers Mountain Hardwear a chance expands its target audience reach by conquering new market territories (Kozlenkova et al, 2021). This leads to increase number of sales, results in improved revenue turnover.
• Increase competitive advantage: with the market entry in foreign diversified market, Mountain Hardwear has an opportunity to enhance its competitiveness. This could be a reason behind international market expansion as it provides the benefits of minimized cost of products and services, hiring of new talent (Hewett, Krasnikov and Hepworth, 2021). Along with that, it facilitates more extensive base of customers as compare to its domestic market country.
• Global demands and trends: Mountain Hardwear can adapt the global trend such as digitalization and sustainability that leads to promote market relevance. This could be a reason behind market expansion as brand has an opportunity to cope with the current global market trends and demands (Atieno et al, 2023). This leads to promote economies of scale and strengthens its market position in the global business market.

Opportunities and challenges in marketing internationally

International marketing comprises of diverse range of opportunities and challenges that affect expansion of Mountain Hardwear, are as follows:

Opportunities: international marketing offers opportunity of market expansion that leads Mountain Hardwear to access new base of global customers within international market (Strobell, 2021). This leads to enhance growth potential and product sales of Mountain Hardwear. Along with that, brand can grab the opportunity related to high economies of scale through expansion of distribution and production within global business market. This result in minimizing overall cost that offers benefit of improved financial position and efficiency of Mountain Hardwear (Katsikeas, Leonidou and Zeriti, 2020).

Challenges: Mountain Hardwear can face challenge of regulatory compliance during market expansion in international market. It seems difficult for the brand to navigate diverse range of regulations, tariff policies and trade laws. This leads to maximization of cost and complicates the process of business operations (Siswati and Rapitasari, 2024). Along with that, Mountain Hardwear may face complexities related to cultural differences as it is termed as quite time consuming and challenging process.

LO2

Key criteria and selection process in market entry strategy

The following key criteria need to be considered by Gap inc. during selection of market entry strategy which is as follows:

• Market size: while entering into international market, factors related to market size and growth trends must be considered by Gap inc. This will help the brand to determine the current market size through identification of number of competitors and potential growth trends in future (Wichmann et al, 2022). For instance; if there are large numbers of competitors in the global market, it is quite challenging for the brand to maintain its brand image, sales and competitiveness. On the other hand, if there are few competitors, the chances of success of global business will increase.
• Growth trends: Apart from that, Factors of demand analysis is a crucial growth trend factor that determines the selection of global market (Hidayat, 2021). For instance: Gap inc. can choose such market which incurs high demand for footwear, clothing and accessories. Success criteria of demand analysis factor is determined as increased sales, increase in number of customers and enhanced financial position within global market (Karaköse and Akin, 2024).
• Level of competition: during international market entry, Gap inc. can invest in conducting appropriate market research to identify current competitiveness in global market. This involves the identification of current competitors, their weakness and strengths and current market position (Khalayleh and Al-Hawary, 2022).
• The infrastructure: this factor involves with accessing of raw material, human resources, availability of financial resources, transportation and logistics and technological advancements resources. These factors are termed as significant in smooth operations of business within international market (Yusuf and Matiin, 2022). Selection of market entry by Gap inc. depends on the presence of these factors in infrastructure. These factors of infrastructure inform about Gap inc. towards the selection of international market with adequate infrastructure facilities.

Selection process for international target market:

• Step 1: Establishment of objectives: The first step for the selection of international target market for Gap Inc. is related to establishment of objectives for market expansion (Hanaysha, Al Shaikh and Alzoubi, 2021). Gap Inc. aims to expand its market by offering diverse range of accessories, footwear and clothing for women, men and children.
• Step 2: market research: This step involves conduct of market research about availability of raw materials, resources, labour, financial services, economic and political conditions and regulatory compliance (Sudirjo, 2023). Gap inc. could invest in market research to identify current market and consumer trends by identifying their interest, preferences and needs. This will help brand to define its target market and leads to enhance success in international market expansion (Raewf, Thabit and Jasim, 2021).
• Step 3: market segmentation and competitor analysis: Gap Inc. can segment its market on the basis of target segment based on geographic, socio-economic and cultural variables. This will enable brand to specify its target market in international market. In addition, Gap inc. can perform competitor analysis to identify its competitors, their weakness and strengths and probability of substitutes and market threats. This will assist Gap Inc, to formulate effective marketing strategies to maintain its strong presence within global market.
• Step 4: Selection of target market: Based on the variables of market segmentation and competitor’s analysis, Gap Inc. selects its target market of men, women and children by offering diverse range of services and products.
• Step 5: Entering into international market: This is the last step that involves entering into global market with the selection of best market entry strategy that enables the brand to manage its business operations within international market (Paul, 2020).

Different market entry strategies that can be used by Gap Inc.

Strategies of global market entry are defined as methods that are used by the companies to plan, deliver and distribute their services and goods within global market. There are multiple global market entry strategies that can be used by Gap inc. to expand its business, which are as follows:

• Outsourcing: this strategy of international market entry involves hiring of another organization to manage business operations within global market. It enables quick entry of organizations within global markets by offering access to insights of global local market, specialised expertise and global talent (Geeks for Geeks, 2024).
• Advantages of outsourcing: Gap Inc. can adopt this global market entry strategy of outsourcing that facilitates the advantage of leveraging local expertise about local markets and culture. Besides that, this strategy offers the advantage of increased efficiency and controlled cost through opening local investment opportunities in business (Katsikeas, Leonidou and Zeriti, 2020).
• Disadvantages of Outsourcing: However, Gap inc. can face certain disadvantages while adopting outsourcing as a global market strategy, such as lack of flexibility and instability. For example: Gap inc. may face difficulty of friction due to lack of flexibility in formulation of managerial decisions (Ali and Anwar, 2021).
• Franchising: in this global market entry strategy, a franchisor grants the corporate rights to franchisee in context to use its business model, brand and operational system. In revert; the franchisee pays royalties and franchisee fee to the franchisor.
• Advantages of Franchising: Gap inc. can adopt this market entry strategy as it offers the benefit of low-cost global market entry and shares risks related to finance (Ipek, 2021). Moreover, it facilitates assistance to business in terms of managing its business operations and risks within global market.
• Disadvantages of Franchising: However, this market entry strategy of franchising is associated with certain disadvantages such as lack of control over business and operational and legal complexities (Kumar, 2024). These complexities are related to granting of rights to use brand name and business model in unauthentic or unethical manner.
• Joint venture: it is termed as one of the most effective market entry strategies that defines about engaging two or more organizations that agrees to share their business identity.

Advantages of Joint Venture: Gap inc. can adopt this market entry strategy that offers the advantage of sharing business rewards, resources and risks in global business market. Further, joint venture enables Gap inc. to access distribution channels, local knowledge and market expertise that helps brand to strength its market position and brand image (Rana et al, 2021). For example: Gap Inc. can enjoy high flexibility in terms of managing its business operations and structure by entering into contract of joint venture with local UK company that emerges as an advantage for brand. This leads Gap inc. to extend the lifespan, results in achievement of project milestones of offering wide range of clothing, accessories and footwear for children, men and women (Paul, 2020).

Disadvantages of Joint Venture: However, international market entry strategy of joint venture has possessed certain disadvantage such as imbalance of expertise and restricted flexibility. Disadvantage of imbalance of expertise related to resources, profitability and expertise is common in this market entry strategy due to which Gap inc. can face the limitation of expertise imbalance (Onyusheva, 2020).

Market evaluation criteria, entry strategies and recommendations for Gap Inc.

Based on the market evaluation criteria of demand analysis, growth trends, level of competition and market size, market entry strategy of joint venture could be applied (Kozlenkova et al, 2021). Gap inc. can formulate strategic alliance with the respective business partners to access their resources, business structure and customers that are denoted as significant criteria for market evaluation. Here are some practical recommendations to Gap Inc. within context of entering into global market:

• It is recommended to Gap inc. to invest in adequate market research that will help brand to understand current market and consumer trends (Hewett, Krasnikov and Hepworth, 2021). Besides that, this will assist brand to comply with the legal regulations and policies that are mandatory to follow while market expansion.
• Along with that, it is suggested to Gap Inc. that it can implement effective marketing strategies to establish interpersonal relations with foreign customers. This will help business to strengthen its global market presence and improved efficiency and performance.
• It is advised to brand that it can establish connection with local investors and businesses prior to market expansion as they offer expertise and financial assistance to Gap Inc. This will enable brand to access key information, current marketing strategies and resources that are vital for the success of business within international market (Atieno et al, 2023).

Evaluation of international market context

Context of international market involves strategies of market entry, relationship and tools for marketing and promotion that helps brand to market its services and products. This leads to offer valuable insight to business about analysing current market and consumer trends, market competition and growth trends (Strobell, 2021). However, it comprises of certain challenges related to adverse competitor landscape and complexity in cultural diversity. On contrary to that, insights gained by international market context helps brand to make informed decisions related to selection of market entry strategy. Concept of international marketing helps businesses to analyse factors related to infrastructure, financial services and level of competition that enable them to streamline their global business operations (Katsikeas, Leonidou and Zeriti, 2020).

LO3

Key argument on Global vs. Local market

Global marketing refers to the process of selling and promotion of brand’s services and products in international countries. On the other hand, Local marketing refers to the marketing strategy in which brand targets customer within nation’s geographical boundaries (Siswati and Rapitasari, 2024). There is range of difference in global vs. Local market, based on certain factors which are as follows:

• Scope: Global market encompasses with diverse global audience and cultures that are crucial factors for managing business in international market. Moreover, it is significant for Adidas to gain wider exposure and to grab opportunities related to increased sales, brand image and competitiveness (Wichmann et al, 2022). On contrary, local market focuses on limited geographical area within boundaries of nation. Therefore, there is limited opportunity for Adidas as the brand has to deal with limited local customers within nation.
• Consumer Preferences: Global market focuses on offering standardized products to meet demand of global customers (Hidayat, 2021). On the other hand, local market emphasis on offering products according to needs and demands of local customers.
• Marketing strategies: Business within global market requires adopting effective marketing and promotion strategy to attract diverse international customers (Karaköse and Akin, 2024). For example: Adidas can adopt the digital marketing strategy to connect with global customers, leads to attract them towards brand. On contrary, business within local market adopt marketing strategies that are primarily based on localized contents and marketing campaigns with the use of regional messages and channels.
• Regulatory environment: Global business needs to navigate with international policies and trade standards that are crucial for streamlined business operations (Khalayleh and Al-Hawary, 2022). On contrary, local business are required to comply with the local laws and trade policies that are prevailed within geographical boundaries of nation.
• Supply Chain: Business in global market finds it complex and difficult to maintain supply chain. On the other hand, supply chain is shorter and easier to maintain with the help of local transportation and logistics companies (Yusuf and Matiin, 2022).
• After considering above mentioned multiple factors, it is suggested that Adidas can choose global market to operate its business activities. There are multiple reasons behind selection of global market over local market as it facilitates wide exposure for growth and development in terms of increased competitiveness, number of customers and sales as compare to local market.

Marketing mix in international context

Adoption of marketing mix in Adidas

Adidas could implement the marketing mix within international context with selection of adequate strategies within elements of product, price, promotion and distribution. For the product element, brand can apply the differentiation strategy that provides basis of differentiation from the competitor’s product (Ipek, 2021). This will enable customers to identify the difference between different products and helps to develop loyalties towards brand. On the other hand, Adidas can implement competitive pricing strategy by setting an economic cost for its products. This price is primarily based on the prices charged by its competitors within competitive global market, leads to promote positive reputation. In addition to that, Adidas can adopt the digital marketing strategy with the application of social media platforms (Kumar, 2024). This will enable brand to reach wider audience and helps to establish emotional connection with brand. At last, Adidas can adopt intensive distribution strategy that aims to penetrate diverse range of local market within global market.

Justification about application of marketing mix in international context

The international marketing mix comprises of product, pricing, promotion and distribution strategy. Adidas could adopt the differentiation product strategy that was justified within concept of international marketing mix as it helps to establish a factor of differentiation between brand’s products with competitor’s product (Rana et al, 2021). On the other hand, competitive pricing strategy offers the benefit on increased sales and customer base within competitive global market. For example: Walmart adopts the competitive pricing strategy by offering products at minimized prices as compare to its competitors, leads to attract customers (Paul, 2020). Adoption of digital marketing strategy is justified as it enables Adidas to wider reach to target audience. At last, Adidas can adopt intensive distribution strategy as it leads to enhance market coverage and promotes loyalty and brand recognition within global market.

LO4

Different approaches for international marketing with relevant examples

In this today’s dynamic and competitive business environment many organisations has adopted and implemented the international marketing approaches and merge. Like Pepsi-Cola and Frito-Lay many companies choose merger strategies to expand and grow business. There are many different approaches related to international marketing used by the firms which are explained below:

• Multinational – It refers to the procedure of publicising and selling goods or services to the target audience worldwide. It allow the companies to expand their business in new markets through competitive pricing, internet and international distribution. For instance – top fast food chains like KFC has adopted the multinational approach and focus on their menu in every country to meet the local tastes (Recker, 2023). The company uses the radio, TV advertisements and social media platforms to market their products.
• Global – A global international marketing strategy refers to the plan to facilitate an organisation develop from a global business that sells goods and services in many other countries. This strategy emphasises the requirement to achieve economies of scale through selling fundamentally the similar goods and services in all market. For instance –Microsoft, a leading technology company which is known for their software products provides the same software programs in all over the world but make adjustments in the programs so that they can match languages.
• Meta-national –In this meta-national approach of international marketing, a business do innovation from day one across the world and expansion of business takes place across new foreign market, new consumers or new segments. For example –McDonald’s, a largest fast-food firm has used the meta-national strategy that has enabled the company to acquire the large market share (Shoham, 2021). The restaurant has tailored its food products as well as marketing techniques according to the tastes, preferences and interests of the local people.

Comparison between home and international orientation

• Home Orientation – Home orientation basically pay attention on observing and understanding the various competitors in the domestic markets. This approach undertakes that domestic market is main competition source and opponents from other regions are less relevant.
• International Orientation – International marketing is explained as performing business operations within more than one country. The competition in this kind of marketing is intense and organisations need to cope up with domestic as well as international competitors. The companies who operate globally generate more profit than firm that operate locally, so it is good marketing approach.

Implications of each approach

• Home orientation – It can restrict a limit of firm’s understanding of international competitors and developing global markets. It can obstruct opportunities for business expansion and development. Through concentrating only on local competitors, firms can avoid possible threats from global competitors who can enter into the local market or target same audience.
• International orientation – It offers a wider perspective on opponents, industry and market trends. It allows firms to find out new opportunities and adapt to ever-changing business dynamics. Evaluation of global competitors needs extra resources and proficiency. It can include dealing with different economic, legal and cultural elements that can increase difficulties for organisations.

Advantages and limitations of international marketing approaches

Recommendations for organisation structure

• The structure of the companies must be developed in a way that all upper management team stays aligned towards accomplishing common objectives.
• The roles and duties of each department and workers should be clearly explained and each person must stick with job roles (Meyer, Li and Schotter, 2020).
• The organisations can focus on the environment so that they can reduce problems and challenges.
• It is crucial for the organisations to use strategies and develop open communication system so that it can reduce the conflict situation.

Conclusion

It was concluded that international marketing played a pivotal role in success and growth of organisation in today’s competitive world. This assignment summarizes different vocational scenarios that comprises of case studies of Mountain Hardwear, Gap Inc., Adidas and Pepsi-Cola based on the concept of international marketing. Effectiveness of marketing to international business strategies along with the selection of international market entry strategies of franchising, outsourcing and joint venture was discussed. Apart from that, debate on local vs. Global market was conducted with help of which it was identified that global operations is a better strategy. At last, Ethnocentric, Polycentric and Geocentric marketing approach for global, multinational and transnational context was analysed in this assignment.

References

Books and Journals

• Ali, B.J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. International journal of Rural Development, Environment and Health Research, 5(2), pp.26-39.
• Atieno, C., Ogutu, M., Munjuri, M. and Kagwe, J., 2023. The Influence of Firm Characteristics on the Relationship between Foreign Market Entry Strategies and Financial Performance of Listed Multinational Firms in Kenya.
• Hanaysha, J.R., Al Shaikh, M.E. and Alzoubi, H.M., 2021. Importance of marketing mix elements in determining consumer purchase decision in the retail market. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 12(6), pp.56-72.
• Hewett, K., Krasnikov, A.V. and Hepworth, A., 2021. The Impact of Home Market Institutional Conditions on Market Entry Strategies of Firms from Emerging Markets. In BUSINESS PRACTICES, GROWTH AND ECONOMIC POLICY IN EMERGING MARKETS (pp. 5-25).
• Hidayat, C.W., 2021. The Influence Of Mix Marketing On Decisions For Use Of Online Transportation Towards Global Competition. International Journal of Science, Technology & Management, 2(4), pp.1154-1163.
• Ipek, I., 2021. The relevance of international marketing strategy to emerging-market exporting firms: from a systematic review towards a conceptual framework. International Marketing Review, 38(2), pp.205-248.
• KARAKÖSE, S. and AKIN, F.İ., 2024. A New Perspective on Marketing Mix Elements in the Context of International Consumers. TWIST, 19(3), pp.35-43.
• Katsikeas, C., Leonidou, L. and Zeriti, A., 2020. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review, 37(3), pp.405-424.
• Khalayleh, M. and Al-Hawary, S., 2022. The impact of digital content of marketing mix on marketing performance: An experimental study at five-star hotels in Jordan. International Journal of Data and Network Science, 6(4), pp.1023-1032.
• Kozlenkova, I.V., Lee, J.Y., Xiang, D. and Palmatier, R.W., 2021. Sharing economy: International marketing strategies. Journal of International Business Studies, pp.1-29.
• Kumar, V., 2024. International Marketing Research: A Transformative Approach. Springer Nature.
• Meyer, K.E., Li, C. and Schotter, A.P., 2020. Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda. Journal of International Business Studies, 51, pp.538-576.
• Onyusheva, I.V., 2020. Exploring Foreign Market Entry Strategies as a Way of International Business Expansion. Вестник университета «Туран», (1), pp.9-14.
• Paul, J., 2020. Marketing in emerging markets: A review, theoretical synthesis and extension. International Journal of Emerging Markets, 15(3), pp.446-468.
• Raewf, M.B., Thabit, T.H. and Jasim, Y.A., 2021. The relationship between the elements of marketing mix and consumer behavior during environmental uncertainty. Cihan University-Erbil Journal of Humanities and Social Sciences, 5(1), pp.50-55.
• Rana, S., Prashar, S., Barai, M.K. and Hamid, A.B.A., 2021. Determinants of international marketing strategy for emerging market multinationals. International Journal of Emerging Markets, 16(2), pp.154-178.
• Shoham, A., 2021. Standardization of international strategy and export performance: a meta-analysis. In Strategic Global Marketing (pp. 97-120). Routledge.
• Siswati, E. and Rapitasari, D., 2024. Optimization of Foreign Market Entry Through Adaptation to Changing Market Trends in The Destination Country. International Journal of Science, Technology & Management, 5(4), pp.743-748.
• Strobell, H.W., 2021. The impact of German culture on the decision making process of market entry strategies–a case study of pet care companies from Germany (Doctoral dissertation, University of Worcester).
• Sudirjo, F., 2023. Marketing Strategy in Improving Product Competitiveness in the Global Market. Journal of Contemporary Administration and Management (ADMAN), 1(2), pp.63-69.
• Wichmann, J.R., Uppal, A., Sharma, A. and Dekimpe, M.G., 2022. A global perspective on the marketing mix across time and space. International Journal of Research in Marketing, 39(2), pp.502-521.
• Yusuf, M. and Matiin, N., 2022. Analysis of the Effect of the Marketing Mix on Purchasing Decisions. International Journal of Economics and Management Research, 1(3), pp.177-182.

Online

• Geeks for Geeks, (2024). International Marketing: Features, Scope and Significance. Online. Available through: <https://www.geeksforgeeks.org/international-marketing-features-scope-and-significance/>. 
• Korinnyi S. O. and Holianchuk A. R., (2018). ANALYSIS OF KEY COMPETITIVE STRATEGIES EMPLOYED BY INTERNATIONAL COMPANIES. Online. Available through < https://media.neliti.com/media/publications/320573-analysis-of-key-competitive-strategies-e-700d865a.pdf >
• Recker, B., (2023). 6 effective international marketing strategies by top brands. Online. Available through < https://veracontent.com/mix/international-marketing-strategies/ >

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