International marketing can be described as those promotional activities including several principles to satisfy varied requirements and wants of different customers residing across national borders. It is also known as global marketing which involves designing of promotional mix worldwide and customizing it according to preferences of various kinds of citizens living all over the world (Akaka, Vargo and Lusch, 2013). This report is based on Marks and Spencer which is a genial retailer that sells clothes, gifts, home furnishings and foods under St. Michael trademarks in UK, Europe, the Americans and Far east. It is headquartered in London in United Kingdom having number of employees around 84,939 and it's revenue is approximately £10,622.0 million. This assignment will discuss about scope or key concepts of global marketing along with criteria and selection process through different strategies of market entry. Different types of approaches and comparison between international and home orientations are described below.
P1 Scope and key concepts of international marketing
There are various kinds of key concepts and scope on which international marketing is based in order to Marks and Spencer. It includes several techniques and methods that impacts more effectively as well as efficiently at global market. These concepts are helpful to enter in different market to expand business at international level which facilitates to improve productivity and profitability of Marks and Spencer. Several scope and key concepts of international marketing that can be adopt by Marks and Spencer are given below.
Scope of International Marketing
- Imports :- This term can be described as to import products and services for a specific brand that works in same manner like it does for whole country (Bertoli, 2013). Marks & Spencer can adopt this technique to expand their business and gain better profits along with grabbing more market area.
- Exports :- It is described as to manufacture a particular product as per order of customer of another country and deliver it to client. There is no need to establish any store or showroom in other nation but just to make product and deliver to foreign customer. Marks and Spencer can adopt this technique as it does not require huge amount of capital and risk factor is also less.
- Contractual agreements :- This can be defined as that criteria when a business moves out to international level then its scope of international marketing expose it to greater chances of doing a lot more business. Such agreements may be like licensing or co-production or even technical assistance (Chung, Lu Wang and Huang, 2012).
Key concepts of International marketing
- Globalisation :- It refers to expand brand at global level through several modes to enter wide market internationally. Thus, it is helpful for organisation to expand their business worldwide to gain more number of customers from different countries. Moreover, it will provide support to increase profits share of business successfully.
- Export Marketing :- It is described as conduct production of product and services and export it to other country in different trade. Thus, it will provide opportunity to grab clients outside the particular nation without establishing venture in foreign countries. Marks and Spencer can increase their customer count as well as boost up brand image in proper manner.
- International Trade :- This is described as exchange of capital, goods and services across international borders or territorie In case of Marks & Spencer, they can adopt this concept and through this, they are required to export or import trade goods to various customers and divisions. Thus, it will render help to increase regular productivity as well as profitability of business.
P2 Rationale for Marks & Spencer to wants market internationally
Various types of methods and techniques which are helpful to expand business of Marks and Spencer at global level to grab more market share. It will facilitate to attract new customers along with retaining current ones that results in to improving productivity as well as profitability of an organisation. Some of them which are acquired or may adopt in future are given below:
Joint Ventures :- This term refers to a collaborative association of any two brands for reasonable period of time. Through this, both companies generate a new firm which works its own protect separately and follow goals or objectives of it. For example, A joint venture of Marks and Spencer was initially used in Spain because it as felt that market knowledge and power of an existing retailer will help mitigate cultural distance and sometimes, adverse political climate. Moreover, this concept will facilitates to expand business by launching joint venture and increase profitability for both business entities randomly.
Direct Investment :- This can be described as to invests capital into another country to enter its market area for gaining more shares at global level (De Langhe and et. al., 2011). But in this method, Marks and Spencer is required to implement a huge amount of money because they have to establish themselves into different nation in order to build stores, showrooms, plants and so on. Large amount of capital and efforts are must so that risk or uncertainty is factor is quite high. Thus, it can be considered as a kind of choice to invest funds in proper manner which helps to promote brand in international market and support to grab clients from different countries at global level. Hence, the increase in customer count will automatically raise in quantity of productivity as well as profitability of company.
Franchising :- It refers to an arrangement where one party grants another one right to use its trademarks or trade-name as well as certain business system and processes to generate goods. For example, Marks & Spencer used franchise format that was hybrid between first trademarks franchising and business-franchising. It basically means that trade-name franchising is based on supply of merchandise and trade mark, such as gas service stations and auto mobile dealerships, while business format franchising relies on a transfer of formalized operating style (Fletcher and Crawford, 2013).
The above mentioned techniques have their own benefits while entering in another market to boost up productivity as well as profitability of an enterprise. Marks and Spencer have to analyse these methods and select the best one for attaining benefits through expanding business at global level.
P3 Key criteria and selection process
Internation marketing is beneficial for any company if proper planing and execution will be done. It helps to expand business in worldwide market by which they can attract new customers along with retaining current ones. This will facilitate to boost up productivity as well as profitability of organisation. It is important for Marks and Spencer to follow an appropriate criteria to select effective procedure with several steps.
Step One – Country Identification
This stage includes to determine an appropriate market of specific country in which particular organisation so that they can expand its business in correct place (Gilligan and Hird, 2012). Selecting an accurate market for improving brand image is very important because in this procedure, single wrong decision may spoil everything. Marks and Spencer have to identify right country to expand market as per opportunities for product manufactured by them. It is a very important aspect to determine an appropriate nation which is suitable for business so that it can be expanded in proper manner along with increasing profitability of business. It includes a target to attract new clients along with retaining the current ones through grabbing people from other countries properly which facilitates to gain more profit share.
Step Two – Preliminary Screening
It refers to that stage in which company is required to do screening of various applicable choices to select best one. It is necessary to observe and analyse several factors of particular country such as currency stability, exchange rates, level of domestic consumption and many more. These elements will facilitate to know exact status of nation which helps to make appropriate decision. Thus, it is an essential criteria to choose best one option from number of alternatives as it is main factor which decides future benefits of organisation through adopting the same.
Step Three – In-Depth Screening
This step is all about to gain information in detail by observing, analysing and evaluating various desired components so that appropriate decision making can be done by organisation. Marks and Spencer have to critically study about deep explanation to reduce risks and uncertainty along with enhancing profitability of company. Moreover, correct decision making is very significant because it will facilitates to direct efforts in right direction for thoroughly analysing all the alternative choices along with evaluating approx outputs which helps to attain desired profits.
Step Four – Final Selection
This level is that while the final selection of specific country is done by an enterprise to expand brand into new market for betterment of productivity (Malhotra, 2011). Marks & Spencer have to analyse each and every factor such competitors in other market for reducing negative impacts and enhance effects of opportunities. Thus, selection of mos effective as well as efficient choice is must because it is mainly considered as factor of deciding loss and profits in future.
Step Five – Direct Experience
This step refers to make an experience directly which should be done by managers of Marks and Spencer to visit that place for having a look on present conditions of that country in reality.
P4 Different market entry strategies and its advantages and disadvantages
There are different types of strategies which can be adopt by various organisations like Marks and Spencer to make an entry in another country to expand business. Several modes are helpful to companies so that they can easily become part of other market to boost up productivity as well as profitability (Paliwoda and Thomas, 2013). Some of market entry strategies that may apply by Marks & Spencer along with advantages and disadvantages are descri