International marketing is also can be called global marketing. International marketing is simply marketing principals to more than one country. Before marketing a product globally, a lot of marketing research needed to be done. International marketing research deals with information collection on international market research. During the international marketing research, the main objective is to identify the process of its implementation and what kind of challenge it will face during the process.
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1.1 International marketing
The application of marketing principals to a different country is said to be international marketing. There are many differences between international and domestic marketing. The main difference is promotional activity. M&S is well known brand internationally.
1.2 Significant characteristics of international marketing
There are many features or characteristics of the international market that helps the business promote globally. M&S can follow these features for the development of their business. There are many features like –
Market research: International market research for introducing a business internationally.
International restriction: There are many restrictions in the international market. It is not like domestic marketing which has no restriction.
Large-scale operation: A large-scale operation is a requirement for an international market. It can be done on a wholesale basis, not on a retail basis.
Dominance of MNCs: Multinational companies are dominating worldwide. MNCs conduct business more economically and efficiently.
Trading blocs: Different nation from same region has form trading blocs for their benefit.
Competition: Suppliers have to face different types of competition in international market.
International forums: International forum regulate the international market. The forum follows the own rules and regulation.
Technology advancement: Advanced technology is an important character for global business.
Long-term market planning: Long-term market planning is needed for international marketing.
Wide scope for participating countries: International marketing is very advantageous for participating countries.
When M&S entered in the international market, they did a full research before entering. They did a good research about the market condition of international market.
1.4 Key concept of international market: M&S Company needs follow some key concept for their company like-
Increasing revenue: M&S have to collect a good amount of revenue for the greater good of their business.
Increasing profit: By offering various offers for the customer M&S can increase profit.
Market stability: M&S need to be stable in market.
Cost saving: A company need to offer cost saving offers for the development of the company. M&S also needs to follow this concept.
Innovative ideas: M&S Company can change their fate by different innovative ideas.
Workforce: Employee is the main source for the success of a company.
Using natural resources: M&S can minimize their production cost by using natural resources.
Foreign demand: M&S need to be concerned about the foreign demand.
1.5 Analyzing the opportunities of international marketing
International marketing has many opportunities for any kind of business. To survive in international market international market planning is a key feature. Global marketing or international marketing has earned a great scope today. There are many scopes in international marketing like import, export, management contracts, and alliance. The scope of international marketing is:
Imports: In every country, there are many kinds of life. Importing products from one country to another is very effective for an international market. In developing countries raw materials is cheap. M&S imports them from those countries.
Exports: Exporting is like mirror view of import. Companies export their product to international market. M&S exports their products in different country.
Joint venturing: Joint venture is like the association of two brands.
A contractual agreement with many companies: When business, level up to the international level they contract many deals with other companies. M&S is well known for their management.
Manufacturing contract: The company owner takes off the responsibility of product assembling. And this responsibility is given to the other company, with which this company made the contract.
Strong alliances: An International market is very competitive. For this, an alliance is needed. M&S has strong alliances with other companies.
Fully owned manufacturing: If the company take full control over the business it will be very helpful for the company. M&S follow this criterion.
1.6 Advantage and disadvantage of international marketing
International marketing has many advantages and also have some disadvantage too. M&S Company is well aware about the advantage and disadvantage of international market. The advantage and disadvantage are following:
· It is a foundation for international economic growth
· Financial performance increased by international business
· Organizations can protect themselves from risk
· International trade inspires competition among companies.
· International exchange rates get benefited.
· Political risk
· Exchange rate risk
· International market has a credit risk
· Cultural complexity is also a risk for international trade.
· It has a risk of information transfer.
Discussion on a scenario: Globalization is a matter of fact in international business. Due to globalization companies can easily use such advantage as lower labor cost, lower manufacture cost etc. For example, in garments business, the companies use developing countries labor at low cost. And also manufacture a product in developing countries at low cost and then they sell that product at high cost. M&S follow their business policy very strictly.
For expanding the business many companies want to go internationally like M&S. More specific reason for going internationally is increasing revenue, profit, capitalism etc.
2.1 Reasons for going international
Increase revenue:A principal reason is to increased revenue. M&S wants to increase revenue by going internationally.
Increase profit: Another reason is to increase the business profit. Increasing profit is a vital reason for M&S to going internationally.
Stability: The international market has stability in business. To achieve stability in international market M&S is preparing for this.
Cost effective: The international market is cost saving. International market opens many opportunity for business organization. M&S can get the privilege by going internationally.
Availability: It's cheaper to do business other countries. M&S can get a good profit by doing business in other country.
Building opportunity: Moving internationally will increase the opportunity to become a trusted brand.
Tax saving: Going international will save on taxes. In many developing country provide tax free business facility, M&S can use that opportunity.
Flexibility: It is easy to stay in touch with business without visiting the places where the business is. M&S has many brunches in different region which can be operated from anywhere.
There are various routes to market product internationally. There are many operating modes that can be chosen by any companies.
A. Exporting & importing activities, B. Investment, C. Other operational activities
A. Exporting & importing activities
· Merchandise exports & imports: Merchandise exports are tangible goods sent out of a country
· Service exports & import: Service exports and imports business are travel, transportation, fees, dividends, interests.
B. Investment: Ownership of foreign property in exchange for financial return is involved for foreign investment
· Direct investment: The investor gets a controlling interest in direct investment in a foreign company, like- Joint venture and mixed venture
i. Joint venture: When two or more companies share ownership of a foreign direct investment, this is called joint venture
ii. Mixed venture: When governments joint a company in a foreign direct investment is called mixed venture.
· Portfolio investment: Foreign portfolio investment is the entry of funds into a country where foreign deposit money in a country’s bank.
C. Other operational activities
There are many other ways to market internationally, such as-
· Acquisitions of existing operation
· Management contracts
Exporting and importing is better for M&S Company. There are many opportunities in exporting and importing business. Because in this business, they can export and import merchandise and service which is very efficient for the company.
International marketing: International marketing is, marketing a product or company internationally. International or global marketing is a marketing that is done on the international level.
3.1 Key criteria for entering international market
Before entering international level there are many things needed. When entering a new country it is important to know the other countries culture, customer, their need, their choice etc. Here are five criteria to help M&S before entering the international market:
1. Learning about the customers and business policies of international market
2. Gathering historical data of the country’s currency value and import & export timeline.
3. Knowing and understanding the laws and legalese governing the business of the country.
4. Conducting a focus group to test the prospective international market.
5. Research about other competitors who tried to enter this market before.
3.2 Selection process for international market
Market selection is an important factor for entering the international market. Selection process plays a crucial part in the international market.
Selection of international marketing objectives: This is the first step of market selection. It is to determine the export marketing objectives of the organization
Selection parameters: There are many parameters in selection process like resources. Environment, market situation, government policy, competitors etc.
Preliminary screening: It is for eliminating the markets which are not potential
Making a short list of markets: After preliminary screening make a short list of the market which does not want consideration.
Further evaluation and then selection: The shortlist markets are further analyzed with cost and benefit analysis. The best one is chosen for the launching of product,
Test marketing: After evaluation and selection, the product is launched in a small part of the market for test marketing. Test marketing helps to ensure the future of the product.
Production of the product commercially: After the market test, the product is ready to produce commercially. Then the companies go for mass production.
In M&S constitution they described how critical for the M&S brand to have such position in the market. To offer the best business location for great shopping experience for the customer they face many problems. They always did a market analysis before entering a new market. Market potentiality is a threat for entering the international market. The demographic structure, economic growth, infrastructure, purchasing power and political risk are the most important factors for these choices. Knowledge on market is important for any organization. A marketing research is very useful before entering an international market. There will be a risk in the market. But the balance between cost, benefits, and risk helps to get attraction in the market. If the company finds these balances the company will be attractive. Accessibility, profitability and market size are three criteria to evaluate the market.