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Unit 4 International Marketing Regent College

Answer :

INTRODUCTION

International Marketing is defined to be an approach which undertakes use of marketing principles ranging in more than one country. The concept of international marketing is relevant when an organisation is looking to expand their operations overseas. It aims to identify market which will be targeted with the products and services of an organisation along with forming decisions on international grounds. The need for international marketing have become substantial prior to rapid growth in filed of technology and globalisation. In this contemporary business environment, a business organisation can sell their products and services without being physically present there through undertaking of e-commerce platforms. (Akaka, Vargo and Lusch, 2013). The concept of international marketing focuses on the planning and executing ideal marketing tactics so that goods and services presented are able to satisfy need of the consumers. This assignment focuses on the operations which are carried out by Rowlinson Knitwear are considered for expansion internationally. It is an organization known to deliver durable garments which are specifically designed for schools and clubs. This assignment focuses on the manner in which marketing contributes to international expansion along with considered element which are to be adopted in overseas market.

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TASK 1

P1 Analysis of scope and concept of international marketing

International marketing can also be referred to as global marketing possess tremendous scope in the contemporary times. It is extremely important for a business organisation to possess right marketing plan so that operations can be sustained in the market for longer duration. The concept of international marketing revolves around publicising distinct features between national and international marketing. The marketing strategies which are adopted by a business locally may not be relevant at the international level (Berthon and et. al., 2012). The management for an organisation have to deal with an unknown environment which is generally hostile, under those circumstances marketing strategies are to be formed that leads a business into attaining competitive advantage.

The implementation and incorporation of marketing expertise in developing strategies for international market helps in enhancing business operations and achievement of competitive edge in the market. The legislation, languages and taste of the target segment are to be considered so that right marketing strategies of can be formulated. However, end results which are to be achieved in this report is to achieve a greater coverage so that higher sales revenue could be attained. The clothes which are to be exported outside the country should match requirement of people residing in those regions. The school and corporate wear which will be transported to other nations carries higher favouritism therefore marketing team does not need to work too hard to sell offerings of this enterprise. There is an increase in the potential market which makes it complicated for a small business to identify market which is to be targeted with company's offerings (Cadogan, 2012). Rowlinson is an enterprise who specialises in delivering knit for the students and corporate people. The scope of international marketing can be defined through various approaches which are mentioned below:

Imports: These are referred to an approach in which an organisation imports products from other nation in which it is available for cheaper prices and sell the same in the country at higher prices. It is referred to an approach through which an organisation attempts to add variety to its existing product line-up. This strategy is definitely employed when the product carry potential to satisfy needs of existing customer base.

Export: this strategy aims to reach to an extended market through exporting products and services out of the country. This approach helps them in garnering additional revenue for the firm. The additional funds which have been generated through exporting of products and services and are used up to pay import taxes and duties. It is an approach through which helps in expanding reach of an organisation.

Contractual Agreements: the scope of international marketing can be enhanced as well as forming contracts with each other improves chances a lot more. The contracts can be formed either on the grounds of licensing, co-production and technical understanding. The colaboration can be understood on the grounds of trademarks and patents which can be availed by business in exchange of fees agreed by both the parties (Cavusgil, 2012).

The major concepts of international marketing are as follows:

Exchange Rate: It can be said that exchange rate plays a crucial role in influencing international marketing. These can be referred to be value of currency which is being expressed in terms of other currency. They are substantial in determination of economic stability and inflation which has been experienced by an organisation.

Growth: The major cause for which international marketing activities which are undertaken is that growth is attained in the international market. But it is equally important for organisation is to be make sure that commercial and strategies are designed specifically for the international market and leads to attainment of growth for the organisation.

International marketing research: The marketing research is conducted as it leads to identification of trends and preferences of people in the targeted market. The international marketing stands crucial as it helps in reaching out to audience with products and services which are capable of fulfilling their needs and expectations (Al-Aali and et. al., 2013).

Globalisation: It is a term which has been provided to interaction which is being carried out between economy of a country and rest of the world. The rise of internation marketing can be credited to globalisation as without the exchange practices between economies there cannot be any operations at the international level.

Global markets: The access to global market have been catered by international marketing. An organisation with generation of promotional messages at international level will be able to sell its products and services at the international level. Rowlinson Knitwear through its promotional messages in Singapore can venture in the market with minimum disruptions.

P2 Explaining the rationale for international expansion along with route to overseas market

It is a big decision for enterprises such as Rowlinson to expand their operations in the international market. The expansion could only be achieved at the cost of disrupting existing business operations. International expansion refers to an crucial growth strategy which is to be undertaken by an organisation as scope in local markets shortens. There are numerous reasons for an organisation to expand their operations in international markets some of them are mentioned below in an brief manner.

Diversification of risk: International expansion refers to be prime measures through which risks could be diversified. Possessing all the resources and operations in a single market is higher prone to influence of numerous external factors to a great extent such as political and economic fluctuations. An organisation which possess its operations in numerous nations considered insulated against such risk as decline in the UK due to political instability will not affect operations of this enterprise which are carried out in Singapore. This approach helps in counterbalancing risks of an organisation (Chung, Wang and Huang, 2012).

Leveraging on resources and advantages: Another crucial reason which encourages international expansion is that it is able to take advantage of adequate availability of resources and market potential so that higher profitability could be availed by the enterprise. For instance: Rowlinson entering economy of Singapore can be benefited by the availability of abundance labour and can attain operational effectiveness and efficiency. In addition to that, there are numerous economies where government encourage FDI through relaxation of taxes and duties (Choi and Yeniyurt, 2015).

Capitalising on untapped markets: As compared to the local market, there are abundance of opportunities in the international market which can be capitalised by this business. Singapore is considered to be a small market with a population of approximately 5.6 million people but possess numerous opportunities due to availability of lesser competition and higher scope for sales. Therefore, organisation such as Rowlinson knitwear will be able to successfully expand in the market and earn economic gains. The surplus of demand will be helpful in raising prices of products and services therefore ending up in higher sales for an organisation.

Brand awareness: An organisation through venturing into international market get additional exposure to varied market circumstances which definitely results in enhanced brand awareness by people (Czinkota and Ronkainen, 2013). In this competitive era, it has become very important for organisation to possess a decent brand awareness so that sales could be availed. The presence of n number of organisation have filled the market with a noise to which a business needs to stand out. The possession of unique selling point can be achieved by forming a distinct image in the market. Another significant impact which can be availed is that there will be an enhanced credibility which will provide business with loyal customers.

Route to international expansion

  • The prime route which can be taken by an organisation while expanding overseas is acquiring a business which is already carrying out its operations in upcoming market. This strategy is useful as the business does not have to arrange resources and start functions from ground level.
  • Forming a joint venture with an organisation is another less complicated manner with which a business can venture in relatively newer market for Singapore. This approach requires lesser resources and also help in mitigating risks for a business.
  • This organisation can take assistance form digital tools and can venture into market virtually through building a e-commerce platform with which buying and selling of resources takes place with the help of internet (Douglas and Samuel Craig, 2011).

Example: Rowlinson Knitwear is known to be brand which delivers corporate and school wear clothing in market of the United Kingdom. This organisation can either form a partnership or can take over a similar company in the Singapore as a part of their expansion strategy. Esta is an renowned manufacturer in the market of Singapore and have been carrying out its operations for over 20 years. This brand have been recently emerged to be largest corporate wear provider in the company therefore is more suitable to form a collaboration so that better services and products are offered to people.

TASK 2

P3 Evaluation of key criteria and selection process while considering international expansion

Before venturing into international market it is essential for an organisation to plan major events as concept of international expansion is not considered as easy. A business is left with numerous choices when it comes to selection of an ideal destination to carry out expansion programme. There are numerous consideration which are to be undertaken by an organisation before actually planning to venture into a nation. The major considerations are mentioned below.

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Culture: Culture is sole feature which can help in determination whether business will be successful in the upcoming market or not. It is essential for the product to live up to expectations of the targeted segment in the ventured nations so that expansion objectives are fulfilled (Griffin and Pustay, 2012). The business before venturing into the nation management have to possess ideal understanding of the culture of community so that better profitability could be achieved. The management before finalising the country have to focus on the demand which has been put forward by the consumers so that right offering could be catered. There will be a vital need for planning which defines ways through which language and cultural barriers are countered. There will be a need to invest time and resources in becoming favourable to that local community (Evers, Andersson and Hannibal, 2012).

Legal and regulatory barriers: The business which is planning to expand in the international markets have to be flexible enough so that it is able to work in accordance to the local laws and regulation which has been undertaken. The various laws which are to be focused upon before venturing into a nation are labour and employment laws, duties and treaties and restriction which relates to import and export in the country (Meissner, 2012). It is very important for a small business such as Rowlinson Knitwear to seek guidance from legal expert so that favourableness of the opted country could be identified.

Foreign Government regulations: To carry out operations in the right manner it is essential for an organisation to consider environment which is provided to foreign businesses to perform. The various features which are to be considered in this approach relates to business are currency exchange rate, access to resources and transportation and government assistance programmes in the country. It is essential to seek guidance and information from local business holders so that right information could be gathered necessary for decision making (Fletcher and Crawford, 2013).

Business case: This critical element revolves around conducting a market research which helps in identification whether business will be profitable or not. The market research which has been conducted thoroughly helps in identification of the personality of market, economic & political favour-ability and development of local partnership. The ideal knowledge will be helpful in deciding whether to venture in the market or not.

The international marketing process consist of numerous steps which are to fulfilled to venture successfully in the latest market. The foremost step focuses on selection of the country along with consideration to the above mentioned factor in detail. The selected country is Singapore which further leads to determination of the customer centric marketing strategy. The third step involves construction of marketing plan which helps in making favourable perception in the market and delivering value to the customers. The final step in this process is to create a relationships which is being profitable and helps an organisation in fulfilling needs of customers.

P4 Different market entry strategies along with their advantages and disadvantages

Marketing strategies define the manner in which an organisation can venture into international markets. Therefore, it is essential to critically consider approaches available through evaluating their merits and demerits so that right strategy could be adopted. Mentioning three major strategies along with their positives and negatives.

Exporting: It is referred to be most common approach to an organisation which is looking to expand its operations in the international market. It is an manner in which marketing of goods are carried out from local market to the ventured market so that an enterprise is able to establish itself. This approach requires heavy investment in terms of marketing and there is no shifting of manufacturing processes to the selected nation.

Advantages

  • The major advantage which is facilitated when opting to this approach is that manufacturing of products and services still carried out in the home country therefore there is lesser risky (Griffin and Pustay, 2012).
  • This approach helps in gathering information relates to international market which is further helpful in expansion of activities by this organisation.
  • This strategy is known to carry minimal risks when operating in the international market.

Disadvantages

  • The major disadvantage in this approach is that there is a lesser control on the way offering are sold in the international market. The operations of the products will be carried out with the help of middlemen which drives prices (Czinkota and Ronkainen, 2013).

Licensing

Licensing is another strategy which has been considered to be crucial for an organisation. It is a measure in which is similar to franchising in which an organisation takes licence to carry out operation in the name of other organisation. For instance: United Bottler is known to be an organisation who possess a right to make Coke. This approach involves high degree of involvement and expense on behalf of organisation (Malhotra,2011).

Advantages

  • This approach refers to the form low risk measures of expanding into the market and helpful in forming right relations with the manufacturers.
  • This approach encourages use of partnership which are already existent with the organisation which is help in ideal running and management of business.

Disadvantages:

  • The major drawback to this approach is that major returns which are availed through manufacturing may not be availed by the business.
  • There is an detailed requirement of planning, investigation and interpretation which requires major efforts by an enterprise.

Joint Ventures

It is an approach in which there is which revolves around forming a partnership amongst two people who agree to carry out operation in shared ownership. It is also a common strategy which is undertaken by an organisation when looking to expand in the international market (Killing, 2013).

Advantages

  • The pool of resources such as inventories and human resources make sure that better output are offered to the market undertaken.
  • In some markets, it is referred to be the only approach with which market opportunity could be availed (Meissner, 2012). For instance: Rowlinson can venture in the market with minimal risks through forming joint venture with already operating organisation.
  • The sharing of risk is a major advantage in joint ventures.

Disadvantages

  • There can be situation of disagreement between partners which leads to incurring of losses. Organisation will have partial control the operations which may not be entertained by an organisation.
  • A partners in a joint venture may be possessed with different views on subject which tend to hinder growth which is to be attained by business.

TASK 3

P5 Presenting an overview key arguments in local vs global debate

Every business in distinct and possess their own personality and nature which makes it essential for manager to possess related information for the same so that targets are fulfilled (Paliwoda and Thomas, 2013). It is essential for a business organisation to derive their efforts to develop a workforce that is able to perform flexibly on the global level. The major distinction between local and international market are defined below in the table.

Global Presence

Local Presence

The global market is full of opportunities and business gets numerous chances to capitalise upon them. Therefore a business can expand their operation in the market to capitalise upon opportunities.

In the local market, there are lesser number of opportunities but a business with minimal efforts will be able to retain their operations in the market for longer. Rowlinson Knitwear can expand their operations on local grounds as well, it will have lesser economic benefits but there are lesser risk.

There is no limits on the intensity in the market which makes it difficult to carry out operations stably. The emergence of latest trends enforces a business to innovate. This organisation have to continuously justify their existence due to intense competition.

When it comes to local level, there are low shifting in the trends and preferences of people which provides an opportunities for a business to main relationships with customers. A business can avail decent level of monopoly in the market due to lesser shift in trends and preferences of people.

The scope for profit generation is higher as a business can venture into market with higher potential and availability of cheap inventories. Expansion to Singapore will be more profitable to this organisation as it will be able to serve a increased number of customers.

There is a lesser scope for profit generation as stability in the market provides with limited opportunities for expansion or operations. The business should focus on retaining existing clientèle so that foreign competition could be dealt with in an ideal manner. A business can expand its operation in local market as well, it is safer but there are less scope of profits.

Diversification in product line-up could be attained easily but with higher investment as per opportunities available in the market. This organisation through forming partnership with other businesses can venture into professional clothing but will be requirement a great deal of investments.

Diversification in local market can be attained with minimal investment but there are limited options in this segment as well. This knitwear manufacturer can diversify their operations but carry lesser scope at the same time.

P6 Investigation of price, product and promotional approach differs in international contexts

The business when operating at the international level is different from that of local market (Foley and Sarathy, 2012). Therefore before considering pricing, product and promotional it is essential to identify variation amongst the two so that right decisions are undertaken. The investigation of various features are as follows:

  • Pricing: The pricing of products of an organisation varies in local and international context. The pricing strategy which has been undertaken by an organisation is penetrative marketing practices. This strategy is useful for a business in securing decent sales in the market. It is very important for organisation to venture into international market with cost leadership strategies so that a base in the latest market can be formed.
  • Product: There will be a difference in the manner products and services will be offered to consumers on local and global level. The product will be offered to local market will be based on uniqueness of this enterprise whereas when working on global level it is essential for a business to conform with the trends and preferences of people in the international market. The products which will be offered by the company will be corporate and school-wear clothing to various institution in the ventured market suiting their need and preferences.
  • Place: The place which has been chosen to offer products and services of this enterprise is Singapore. The major reason is that it provides a favourable business environment and emerged as one of easiest place to venture due to suitable policies and practices. The business organisation entering this market will be able to have access to profitable south Asian market and expand further.
  • Promotion: the marketing strategies which are undertaken covers a small area whereas international marketing covers a large area. Therefore while carrying out promotional strategies on the global level it is essential for an organisation to utilise tools which carries wider reach such as social media marketing and search engine optimisation. While promoting products at a local level, billboards and discounting measures should be incorporated (Turnbull and Paliwoda, 2012). It is essential for this organisation to opt for a right combination of the online and offline marketing measures so that people belonging to different segment can be informed and persuaded to buy products and services of this clothing manufacturer.

TASK 4

P7 Explain and analyse the various international marketing approaches your client organisation can adapt

In this current business environment, there are two type of marketing approaches which are helps to expend work at international level. Management of an organisation develop strategies in order to increase their business activities as well as expand their market at global level in order to rise profits in long period of time in limited period of time. Through effective marketing approaches firm are able to achieve their goals and objectives in appropriate ways. Along with this, it is important for Rowlinson Knitwear to select best method to grow at internationally. Thus helps o build high brand value as compare to their competitors at market place. There are two approaches traditional and modern are widely used by organisation are explain as follows:

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Traditional marketing approach:

It is a hypothetical analysis of future based on past performance as well as financial analysis it also called tried and test method. Management of the company used this method to enhance their productivity as well as market position. Most of the small and micro enterprises are used this approach to run their business activities cross the nation (Wilson and et. al., 2012). Administration of Rowlinson Knitwear are apply this method for expand their business operations at international level. For this they are utilise various kind of promotional tools like advertisements through newspaper, magazine, billboards, hoardings etc., charity, sponsorship, attractive offers and many more. Through this, firm are capable to build strong brand image at market place thus enhance profits as well as higher position in same industry. There are various mode where firm promote their product and services which help to build strong brand image in customers mind for long period of time.

Some advantages and disadvantages are given beneath:

There are several advantages and disadvantages of traditional approach which positive as well as negative impact on organisation performance as compare to their competitors at market place. It is a most effective in nature thus improve customers satisfaction of low price product and services. Through this firm are able to gain higher growth and success in the same industry. Along with this, this method is a danger of new goods and services because it can not improve quality of product according to clients needs and wants resulted organisation can not able to provide full satisfaction and value of money. This method consist higher cost in result reduce profitability percentage firm and value for potential clients.

Modern marketing approach:

According to modern marketing approaches, management develop strategies and plan in order to promote product at economical price as well as for mass audience which help to maintain product quality as well as low price to attracting large number of customers toward firm product and services (Yang and Fam, 2012). For this, Rowlinson Knitwear used latest technology and innovative ideas in order to produce goods and services. Through this, organisation are capable to new and innovative commodities to their potential clients that enhance gratification and market position. For promoting product and services management of an organisation used social media and internet both have low in cost as well as time saver. This method helps to rise reachability as well as attracting large number of consumer toward enterprises commodities that improve firm profits. This kind of promotion mode has cheep in nature that save time and fund of the company and create positive impact on form performance in long period of time in specific time frame. Management of the company organising research to know individuals need and wants accordingly develop plan which help to full fill their demand in appropriate manner (Zhou, 2014).

Some advantages and disadvantages are given beneath:

There are several advantages and disadvantages of modern marketing approaches like this method do need so much amount to invest and save time as well as effort of employees. Through this mode of marketing company are able to attract large number of customers toward their commodities and services. But some negative factor are also associated with that which are, clients are not feet attachment with this kind of promotion method because it can not provide that information which are find by particular person, they provide general information those are some time can not full fill customers requirement effectively.

P8 Compare home and international orientation and ways to assess competitors with its implications

In order to expand their market position firm are organising market research which provide information related to clients needs and wants of different nations as well as location. Rowlinson Knitwear want to run their business activities across the nation at worldwide level. Through this research, firm are able to know their target consumers, segmentation and positing methodology, perception, attitude, behaviours or many more in order to enhance their brand value at market place. It also help to know their competitors strength and weakness to know what is their opportunities to grape as well as threat that arise due to high competition at market place. Management of an organisation develop plan to expand their business activities at multiple nations that increase market share as well as profits (Akaka, Vargo and Lusch, 2013).

In UK various small organisation want to run their business activities at global level. For this, they are using traditional approaches because it is a higher rate of success in future but in Singapore modern approach are work better then conventional. Because business man used this concept to provide high innovation as well as latest technology to provide high quality commodities and services. Thus rise profitability as well as enhance customers satisfaction in effective ways in limited period of time. Other then this, management of firm use traditional approach when they are not receive appropriate information through research that has been done by them to know customer's needs and wants at different location in limited period of time. In order to develop effective marketing strategies, firm are analysing their competitors planning of expansion market at international level (Berthon and et. al., 2012). Administration of Rowlinson Knitwear generating better result related to clients needs and wants that helps to increase efficiency of work and productivity of employees because all information related to production may helps workers to produce goods which are full fill demand of potential consumers in specific period of time effectively. The major differences between home orientation and global orientation are as follows:

Home orientation

International orientation

· This orientation is confined to the domestic boundaries only.

· There will be no change in the regulatory and economic policies therefore no impact on business operations.

· The detailed understanding with the customers and their preferences will provide this business with competitive edge in the market.

· This orientation is applicable to organisation operating on international grounds.

· There will be alternation in policies and practices due to change in the country.

· It is essential for a business to conduct market research so that a minimal understanding with customers base could be established.

CONCLUSION

As per above report it is concluded that international marketing is not so easy as well as it really need very heavy investment for doing marketing at an international level. If they are considering this then enterprise should control and marketing contribute in their best crafting and framing techniques effectively at a level of international. With an accurate plan of action all types are consider as well as its components facilitate accurate development and growth. Therefore, with proper techniques making and its success factor of enterprise aid in sustaining and benefit methods to enter into a choose area of market are evaluated with accurate articulation. By using a concept of planning a market result will lead to execute all activities effectively. Fro more info you can read international marketing in city college.

REFERENCES

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