This assessment will guide you through:
- International Marketing working
- Various factors about marketing
- Strategies need to be in market
Introduction to International Marketing
International marketing enables organisation, to implement more than one marketing mix decision at global level (Papadopoulos & Heslop, (2014)). It is one of the complex process, in order to implement and coordinating manufacturing facilities globally. This report is based on international marketing strategies and drivers of globalisation. Addison Lee is a private taxi hiring company. In the task 1 marketing strategies and marketing mix are discussed. In task 2 drivers of globalisation and their impact on organisation is considered.
Addison Lee is largest private hiring company. The major strength of organisation is senior team. They are expanding their business thorough digital marketing, innovative and creative use of social media. They prepare strategies on the basis of 15 years experience.
Before, launching services,they involve various stages. Production strategy, in order to provide services market competition and demands of clients are considered by comparing various factors. In the second step, positioning strategy is used in order to create brand value among users and to win trust.
Perceptual stage is considered, in which customer's perception is considered in order to understand need, purchase and quality. Another step is product is differentiation, in which products and services are compared with other services. On the basis of that targeting marketing takes place, in order to attract more number of clients. Along with this pricing strategies are also considered, penetration pricing strategy is most effective. Through this they provide prices which is effective for all groups of customers (Czinkota & Ronkainen, (2013)).
Premium price and quality of service is used as symbol of organisation. For distribution process, various channels are used by company such as direct, value added, consultant and internet. Company uses both traditional as well as advance distribution channel in order to cover wide range. Along with this methodologies varies from business to business or business to clients. On the basis of that direct and indirect channels are recommended. At the last stage promotional strategies are implementation, in order to advertise services and products. For this various mediums are used such as digital, social, newspaper and magazines. Addison Lee consider each step important for marketing. They also considered various economical and social factors while launching services at global platform. Through implementing all these steps, they are second largest private hiring company of Europe (Dinnie, (2015)).
It consists of various factors that are controlled by organisation in order to maintain purchasing of products and influence more number of clients. Addison Lee prefer it in order to analyse impact, before promoting any products. It consists of four typical mix- price, product, promotion and place. In order to have deep study, its extended version is also available like packaging, positioning and people.
Price: It refers to cost that is associated with product. It depend on various factors such as resources availability, production, supply and transportation charges. Various pricing strategies are considered for pricing of any product. Addison Lee use market-oriented and value-based pricing approaches, in order to provide actual and precise cost to their clients.
Production: It is used to represent the quality and quantity of products that are being developed by company. Provided services should be able to attract clients in order to maintain growth of firm. Addison Lee is able to understand the demands of clients, on the basis of that necessary changes can be introduced into products.
Promotion: This step is considered in order to promote or advertise services to their clients. For this various customers related offers like contests and prices are organised in order to influence clients (Doole & Lowe, (2012)). In order to attract customers, Addison Lee also use various promotional strategies. Such as schemes like free rides, prizes and discounts.
Places: In order to increase point of sale, places are also considered through strategies. For this proper distribution channel and flow of services locations are essentials. Perfect selection of location directly, influence growth of business. Addison Lee usually, covers urban ares in order to attract more users (Hooley, Nicoulaud & Piercy, (2011)).
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Market entry strategies
There are various approaches are available in order to enter into foreign market. All strategies differ on the basis of international marketing conditions. Some of them are following:
Directing Exporting: In this emerging market strategy, direct selling of services takes places. Distribution channels are constructed once at the starting of process. Along with this agents and distributors are involved in order to maintain company growth and reputation into market (Keillor, Hult & Babakus (2015)).
Licensing: In this approach arranged contract takes place, through which organisation transfer their rights to other firm. This method is effective for large market or if firm wants to enter into large market.
Franchising: This approach is usually considered, if organisation wants rapid expansion. They work on repetitive business model due to which easy market transformation takes place. But firm should have strong brand value and image in order to influence clients.
In order to identify threats and opportunities for Addison Lee SWOT analysis is following:
- Base model of firm can be operated by owner only.
- Rapid expansion of organisation.
- Financial stability
- Misbehave of drivers can affect company reputation.
- Accidental causes can be huge.
- Monetization is complex process.
- Internet and smartphones can increase business.
- Shifting of clients towards convenience.
- Increased competitors.
- Lack of government regulation
- Customer's are less loyal.
In order to justify need of international marketing approach, marketing mix principle is used. To identify promotional need based on the conditions and demands various strategies are implemented. Through products, companies tries to satisfy needs of clients, also try to provide different features from competitors. Pricing, deals with providing services at affordable price (Malhotra & Whitelock, (2013)). Place, refers to effective location for proper functioning of distribution channel. Promotions are use to make clients aware about the services provided by operator. This helps organisation, in order to reduce lost and provides opportunities (Nebenzahl & Jaffe, (2013)).
Drivers of globalisation.
In organisation globalisation have different types of drivers, such as political, competition, cost and market. It also depends on technologies, like internet, mobile phones and satellites navigation system. Addison Lee is influenced through various drivers. Some of them are following:
Political driver: Different trading rules and regulations are imposted by government. That allows firm to make direct investment all over the world. Which helps organisations to grow faster. GATT (General Agreement on Tariffs and trades ) in 1947 and the WTO (World Trade Organisation) in 1995 are some of the example of government policies in order to promote globalisation (Market Entry Strategies. (2017)).
Market driver: Domestic markets are getting saturated day by day, due to which opportunities are reducing and opportunities are becoming limited. To overcome such issue globalisation can be used as option. Through the experience of customers need, various possibility are available in order to expand company ( Papadopoulos & Heslop, (2014)). Along with this market transfer also increased incentives of firm at global platform.
Competition driver: Increase in global market, directly influences the inter-firm and intra-firm competition. Along with this some countries provides two-way trades and FDI policies in order to support rapid growth at international level.
Cost driver: Cost of products vary from one place to another, which can be considered advantageous for global companies. It can be considered as opportunities in order to scale up economy and production (Czinkota & Ronkainen, (2013)).
Technological driver: It plays important role in globalisation, by providing shape and foundation. Innovation and creativity are essential, in order to bring revolution into organisations. Some of the areas are telecommunication, computation and microprocessing. Along with this internet is also one of the biggest implementation of technology. Through which globalisation is reached at another level.
Impact of Drivers.
Addison Lee is highly influenced by various drivers of globalisation. In order to emerge into new market these factors are directly influencing them. In order to overcome, various strategies are implemented such as direct exporting, licensing, franchising, partnering and so on. Different emerging marketing strategy can cause huge impact on company (Dinnie, (2015)). If Addison Lee consider directing exporting technique, organisation will be selling their services and products directly by using existing distribution channel. Political and competition driver affects firm, such as different countries have different economical policies, trades and export duties. Which can cause huge impact on the economic growth of company. In competition drivers, various intra-firm will give compete with organisation.
Licensing is another market emerging strategy, in this company provides access to other firms in order to use product and services. Through this approach, market driver can influence organisation. It provides global platform to comapny, along with this various opportunities are also provided to Addison Lee (Doole & Lowe, (2012)). In order to expand their business, franchising strategy can be used. This provides rapid expansion of firm and also increases profitability, cost driver influence growth by providing opportunities to organisation. Partnering emerging scheme can be used by company in order to expand business at foreign market. For this firm need co-marketing arrangement in order to promote their service. Technological driver can affect, because firm need to spend huge capital in order to promote their service at internet.
Joint ventures is an option available for emerging market. In this method third part is involved for expanding business into local market. Through this approach competition and political driver can affect the growth because various rule and regulation can be implemented on organisation.
On the basis of above analysis, Addison Lee can use political and licensing in order to emerge into new market. Theses strategies help organisations in order to expand their business at global platform (Hooley, Nicoulaud & Piercy, (2011)). In order to implement them, new distribution channel is not required. Various government policies also provide strength in order to expand into foreign countries.
International marketing strategies in emerging economies
Currently, investors are investing money into emerging economies. According to the research of Bloomberg Marketing Magazine, investors follow structured financial- marketing strategies in order to make investment. For this countries are rate on the basis of economical freedom, resources and corruption level. On the basis of report, Philippines, china, Russia and Peru are under the list for emerging economies. Various marketing opportunities are provided to investors in order to attract, along with this foreign investment policies are also playing essential role by increasing growth rate up to 33% from 1996. Various hurdles like economical restriction, government policies and availability of resources affected the growth (Keillor, Hult & Babakus, (2015)).
According to international marketing strategies of China, they involve various cultures in order to attract capitalist such as diffused, categorisation, relationship focused, formal and mono-chronic. Apart from that different economical policies are also implemented to grow business faster. For this in 1978, economic improvement campaign was organised. Aimed to minimise burst cycle and control inflation in order to maintain growth of country. Various acts are introduced in order to encourage setup of factories and industrial plant at rural area. Along with this friendly relationship is maintained with neighbouring power centre, such as India and Japan. Different distribution systems are considered in order to maintain effective flow of services such as cluster, non-Chinese 3PL and localization model.
In Russia time, capital and resources are considered essential for developing business. Designing and development of strategies are based on the core of product benefits and natural resources (Malhotra & Whitelock, (2013)). Where in Peru, marketing strategies are based on the international arrivals and Peruvian travellers. In traditional approach, service are provided at variety of routes. Along with this instructions are identified on the basis of countries.
On the basis of above report, international strategies are essential for expanding business at global platform. For this various international strategies are available, along with this marketing mix principle is also considered. On the basis of analysis, Addison Lee considered structured marketing approach. In which every stages are equally important for marketing. Various drivers of globalisation are also considered, on the basis of that impact of drivers are also analysed.
- Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. Routledge.
- Czinkota, M. R., & Ronkainen, I. A., (2013). International marketing (10th ed). Andover: Cengage Learning.
- Dinnie, K. (2015). Nation branding: Concepts, issues, practice. Routledge.
- Doole, I. & Lowe, R. (2012). International Marketing Strategy: Analysis, Development and Implementation. United Kingdom: Cengage Learning EMEA
- Hooley, G., Nicoulaud, B. & Piercy, N. (2011). Marketing Strategy & Competitive Positioning. Harlow, England: Prentice Hall.
- Keillor, B., Hult, G. T. M., & Babakus, E. (2015). The Natid Scale: Construction of a National Identity Scale for Application in International Marketing Research. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 220-224). Springer International Publishing.
- Malhotra, N. K., Wu, L., & Whitelock, J. (2013). An updated overview of research published in the International Marketing Review: 1983 to 2011. International Marketing Review, 30(1), 7-20.Malhotra, N. K., Wu, L., & Whitelock, J. (2013). An updated overview of research published in the International Marketing Review: 1983 to 2011. International Marketing Review. 30(1). 7-20.
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