This sample will let you know about:
- Define international marketing.
- Discuss strategies for industrialisation.
It was established by King Gillette as safety razor manufacturer in Massachusetts. United States. The report highlights information about concept and scope of international marketing, routes to market, criteria and procedure of selection to enter in international market, different market entry strategies. Further, it includes arguments for local and global debate, ways approaches of elements of marketing mix differs in international contexts.
Analysis of scope addition to key concept of international marketing.
International marketing is defined as performing activities of marketing at global scale for gaining commercial benefits. In other words, practices related to marketing that are performed by enterprise on international level refers to international marketing.
Some of the international marketing features are as follows:
- It involves two or more set of variables that are uncontrollable.
- There is tough competition in international marketing.
- It depends on factors and conditions which are risky and challenging.
Gillette Company is a brand that performs operations from United States. The company has wide market shares and presence in almost all parts of world. But, at same time, it lacks official presence in one of country that is Cyprus. The managers are planning to expand its presence and operations in this country. Order assignment help from our experts!
Key concept of International Marketing
It refers to the application of marketing in such a manner which satisfies the needs, demands and wants of customers across the globe (Amankwah-Amoah, Boso and Debrah, 2018). The ways through which a company like Gillette can take its products and services to a global level includes Global Web, Licensing & Franchising , Joint Ventures, Direct Investment and Exports.
The international market concept generally includes broader market, intense competition, usage of international resources and commitment for satisfying local and foreign demands. Each one of these methods has its utility for the organisation for expanding its business to international horizons. Nowadays, it is essential for any enterprise to be global and have a mass outreach if it has to sustain itself in an emerging market in an era of globalisation.
Scope of International Marketing
International Marketing is very important in a global arena as it has a wide outreach and scope as the companies can go abroad using it. It can be in the form of imports which means purchasing of goods from foreign, exports which means selling goods to other countries, contractual agreements which means getting into a contract with international companies, joint ventures that is coming together to create a strong brand, fully owned manufacturing in it organisations can own a fully owned manufacturing plant internationally for the production of goods and can hire local workers. By adopting the concept, Gillette company will enjoy wide scope of international marketing that are as follows:
Establishing brand: International marketing has generally wide scope as it allows to establish brand in other nation where no operations are performed by the entity.
Licensing arrangement: It is legal contract among two parties that are licensor and licensee wherein licensor grants rights to the licensee for producing along with selling commodities, using patented technology while going internationally.
Explanation of rationale for the company to want to market internationally as well as description of diverse routes to market. Evaluation of opportunities and challenges which marketing internationally provide to the company.
In present era, it is important to promote existing business and gain huge market share for the purpose to market internationally (Eteokleous, Leonidou and Katsikeas, 2016). Organisations wants to market international so that they can generate huge revenue proportion and expand operations in other nations too. Gillette is popular brand which offers varied personal care commodities, safety razors and many more. Following are some rationale for chosen company to market internationally:
- Diversifying income stream and generating huge revenues so to cope with new sales is main rationale for Gillette to market internationally.
- International marketing helps in increasing sales of company as when an organisation promotes and sells its commodities in other country or market then it results in increasing sales of offerings.
- The another rationale for the firm that wants to go internally for marketing commodities is to gain government incentives and increasing innovations.
- Seeking growth opportunities through providing varied organisational products to the other nations that are not offered by domestic business and grabbing attention of large targetted audience is another rationale for chosen business that wants to market at international level.
Various market routes
Market routes are the method which businesses can use to get the products to its targeted customers. Few of the routes that Gillette company may adopt are as described:
Exporting and importing: Selling organisational commodities from domestic area to international country is exporting. However, purchasing foreign commodities to bring them in home nation is importing. It is a route that helps companies to provide the commodities to targetted people either in domestic market or in international market.
Investment: It is defined as the money spent to purchase the commodities which are not consumed in present context but will be used in upcoming duration. Companies uses this market route to create wealth in other nations. By using this route, Gillette Company can make investment and enter in other markets through procuring commodities which will be more in demand in future. Need Assignment Samples?Talk to our Experts!
Other operational activities
Selling online: In recent times, selling online is one of market route to sell products to many people through e commerce websites (Mathews and et.al., 2016). Customers prefers more to shop online as it provides faster as well as safer transactions. By adopting this market route, Gillette company will be able to satisfy more demands of population that is locates at far places by selling its products online.
Setting own store: In this route, organisation have to set a physical store by own name wherein customers can touch, feel and see the commodities prior to purchasing. By opening own store, Gillette company can enhance shopping experiences along with encourage customers to buy more from the stores.
From mentioned market routes, managers of Gillette company can go international with exporting and importing route as it will assist in satisfying more people and making secure transactions. With this, managers of the organisation can purchase and sell commodities both in foreign and domestic market.
Opportunities and threats
International marketing provides wide opportunities and threats to entities which plans to go international (Moon and Oh, 2017). Considering opportunities, Gillette company while marketing at international level can generate best economies of scale, attain strategic alliances, sustainability and huge investment returns. However, challenges provided by such marketing to chosen company will include imposition of tariffs, taxations by political system of other nation, considerable diversities, ethical challenges, bureaucratic regulations addition to exchange rate variations.
Evaluation as well as application of key criteria along with selection process that are to be used while considering the international market to enter.
International marketing is defined to the implementation of activities for designing plan, promotion, flow and prices of products to consumers in more than a particular country for profit. Environment of international market is generally dynamic in nature that can create huge difficulties for Gillette Company to operate actions in international market. The company has presence in almost international market but lacks official presence in Cyprus country. Therefore, it is essential for it to focus on following criteria while choosing global market for entrance:
Availability of resources: This is one of important factor that needs to be taken into consideration while making entrance in global market of Cyprus country. Resource availability in terms of manpower, assets, technologies, materials and other resources should be considered by Gillette Company at the time of taking a foot forward for the global market (Morgan Feng and Whitler, 2018) .
Proper infrastructure: The duration when managers of chosen firm plans entrance in Cyprus country, they are required to analyse and monitor proper infrastructural facilities which is needed for setting premise and operation successfully. Hence, focusing on infrastructure criteria is key for business while considering entrance in new oversees market.
The term selection is stated to choosing specific option among wide choices or alternatives. The mentioned selection process must be use by Gillette Company while considering the international market to enter:
Devising internal marketing aims: In this phase, top organisational management sets aims in order to expand operations and activities in oversees market. In respect with Gillette Company, top management team sets global objectives of increasing sales volume to 20% and profit levels for expansion.
Identifying and evaluation alternations: When company sets objectives, the next is to identify of huge alternatives to set business. Chosen company further evaluates alternatives and perform further actions.
Preliminary screening: Herein, Gillette managers scrutinise all evaluated alternatives for getting best choice of decisions to set business. In this, they considers factors including population size, per capita income, structure of economy and so on.
Analysing, monitoring and selecting suitable destination: In this stage, best decision for the destination to expansion are taken after analysing cost benefits along with feasibility. They monitors all criteria and further selects effective destination wherein they will gain best responses for products.
Testing: Herein, selected market is tested through selling samples of organisational goods. In context to Gillette company, it sells some of its razor or personal care products in Cyprus country so to gain understanding about perceptions and choices of targetted population and further makes decision for product offerings.
Commercial production: Suitable results in market testing assist companies like Gillette to manufacture and sell products in large scale so that operations are properly executed to achieve objectives.
Hence, it is recommended to Gillette Company that they should consider the mentioned criteria and follow selection process effectively to gain better results.
Explanation of different market entry strategies to target international market.
Market entry strategies refers to the ways through which companies enter in foreign country for targeting global market (Schmid, Grosche and Mayrhofer, 2016). There is not one market entry strategy that can be used by a firm to enter into various market as they can enter through various ways.
Evolution of strategies in internationalisation process
Internationalisation process involves various strategies that has been evolved from shifts in trading systems, practices and standards. Strategies that are part of the process are licensing, direct exporting and so on that were evolved few years ago. In the mid 19th century, internationalisation strategies were evolved through establishment of miniature subsidiaries replica Abroad. Along with this, limited global integration also played huge role in evolution of all the strategies to go internationally.
The chart related to evolution and expansion of international strategy at global level is as follows:
Explanation of process
The explanation of evolution of strategies in internationalisation process is as follows;
Patterns of expansion: It includes expansion patterns which are in active passive format. Moreover, in this stage, different patterns related to expansion were evolved. Some were external to internal business handling while others were associated to limited to extensive operations mode.
Deepen commitment modes: In this stage, commitment modes to go international were deepen. Herein, various commitment were made and strengthen so that further activities were processes effectively.
Geographic diversification: In this, practices were performed in similar cultural background that assisted in gaining huge recognition along with revenues.
Leapfrogging of expansion: In this stage, activities were initiated with global focus that helped businesses in increasing operations at international level.
Few of the strategies related to market entry for Gillette company are explained below:
Direct exporting: It refers to selling products directly in chosen market with own business resource. For example, When Gillette Company will use this strategy then they will gain various opportunities to contact directly with the customers. The advantage associated with the direct exporting strategy is that it provides huge control on procedures of exports to entity and helps in making closer relations with overseas buyers along with market. However, disadvantage of it it that it requires great initial investment for directly exporting goods in new market and includes huge risks concerned with credit, rejected merchandise and financing.
Licensing: It is said to sophisticated arrangement in which a company transfers rights to another one for using product, business model and manufacturing process (Skarmeas, Zeriti and Baltas, 2016). For instance, it will be useful for Gillette Company when purchase of license have large market share within the targetted international market that selected one prefers to enter.
Advantage of licensing strategy is that it provide easy and quick entry into international location with low capital requirement. Moreover, large investment returns are realised quickly in this strategy. In contrary,
Disadvantage of using it is that license period is limited, licensee may emerge as competitors after some duration and limited control can remain with the entity.
From above evaluated market entry strategies, Gillette Company should adapt licensing strategy to market its products in market of Cyprus country. Through achieving license from the well popular retail store that have sustained operations in the chosen market so that it can produce, sell and promote products to gain huge responses.
Overview of key arguments in local vs global debate along with evaluation of context and circumstances wherein organisation should adopt global or local approach.
Marketing plan is important for all organisations whether adopting local approach or global approach. Top authorities of Gillette Company analyses local as well as global presence so that further plans are framed accordingly. The chosen business is involved in offering personal care and various razors in local market of U.S. For entering towards global market, it requires effective planning with devising suitable strategies.
Local marketing is defined as as local marketing plan which is prepared by firms attract population from domestic or native nation (Souchon and et.al., 2016). However, global marketing is defined as marketing plan for providing and satisfying products in nations across boundaries. In local debate, targetted customers are from finely gained locations that are neighbouring cities. In contrary, global debate helps in targeting customers from oversees nations. Companies such as Gillette by using local debate, focuses on running business in smooth manner by focusing on developing and maintaining relationships with consumers within local market. On other hand, using global debate, the respective business gives major focus on developing innovations after understanding trends and needs of international market.
From above arguments, it can be said that when business like Gillette Company has objective to make relations with native population and satisfy their needs then in this situation organisational managers should adopt local approach as it will help in properly fulfilling all essential needs of native area and making sustainable position. Where as, in the scenario where the same business wants to leverage international opportunities, gaining competitive benefits and expanding market share then it should go with international approach. With this approach, it will be able to gain international opportunities for business expansion and enjoying competitive advantage by making strong international image of brand. Get Finance Dissertation Topics from our qualified experts!
Investigation about ways of product, pricing, promotional along with distribution approach differs in variety of international contexts.
Marketing mix refers to set of tactics which entities uses for promoting brand along with commodities in market. Marketing mix includes 4P's that are as defined:
Product: Product is defined as tangible commodity which is designed and manufactured for selling purpose. Moreover, it is offered to gain revenues. In context to Gillette Company, it offers various products such as razors, blades and other cosmetic products.
Price: It is payment quantity that are set for consumers so that they can avail the products after paying some money. Gillette Company sets its prices by using various pricing strategies such as competitive pricing and so on.
Place: Place is the location where products are available to the consumers. Companies distribute their products at various places. In case with the company, it provides its products through opening stores, online websites and many more.
Promotion: the set of activities that helps in communicating product, service addition to brand to the users located at wide places. Marketers of the firm promotes the products by using various marketing techniques such as sponsorships, social media marketing, hoardings and so on.
Following are some of the ways in which approaches of product, pricing, promotional and distribution of Gillette Company differs in various international contexts such as United States and Europe:
United states context
Gillette Company offers products including shaving cream, razors, blades, deodorant and many more for grabbing more market shares by satisfying native population.
For expanding in Cyprus country that is in Europe, Gillette Company for leverage opportunities will offer its specialised products and later after understanding market needs will produce commodities accordingly.
Product prices are set as per purchasing power of local people (Williams and Chaston, 2016). Moreover, In US market, selected firm uses competitive pricing strategy for making strong image against rivals.
In this context, product prices will be set as per economic status of country and purchasing power of targetted consumers. In this, bundle pricing is majorly adopted to selling set of goods at affordable prices.
Within US market, Gillette company promotes the business and products through hoarding, advertisements and personal marketing.
In Europe market context, Chosen firm uses social media marketing, relationship marketing and sponsorships.
Products in such international context are distributed through physical stores and home delivery options.
Within Europe context, using option like online platforms, retailers, physical stores and wholesalers are used for distribution specialised products (Zeneli, 2016).
From viewpoint of Srinivasan (2016), marketing mix is applied in different ways in distinct market context. In context to US market, the element are used for proving all products to native market to gain competitive advantage. But in Europe market context, Gillette company adopts marketing mix elements to sell specialised products through making relations with global customers.
The above report concludes that international marketing concept is performance of organisational tasks for planning, pricing, promoting together with directing flow of commodities to consumers in more than a country to make profit. Selling online and setting own store are some routes to market. Criteria of proper infrastructure and raw material availability must be considered by company while making decision to enter in particular market. Direct exporting as well as licensing are some market entry strategies through which enterprises can target international market. To gain more revenues, sustainability and return on investment, it is recommended to business to adopt global approach.
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