Student Name: Konrad Walendzik

Student ID : 236250
Unit/Module : International Marketing
Programme : HND Diploma in Business

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Nelson College London

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Table of contents

Table of contents........................................................................................................................2
Introduction................................................................................................................................3
The interrelationships of the operations function with the other functions within an
organisation................................................................................................................................4
Analyse the scope and key concepts of international marketing............................................4
The rationale for an organization to want to market internationally and describe the various
routes to market they can adopt..............................................................................................5
Entry to a selection of international markets and define the key success factors......................6
Rationale for IBM to the international market.......................................................................8
Routes to target international markets and opportunities/challenges.....................................9
International market entry criteria and recommendations for IBM........................................9
Elements of the marketing plan can be adapted or standardised across international markets10
How the product, pricing, promotional, and distribution approach differs in a variety of
international contexts............................................................................................................11
How to organize and evaluate international marketing activities............................................14
Presentation..............................................................................................................................16
Conclusion................................................................................................................................22
References................................................................................................................................23

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Introduction

International marketing refers to the process of planning, implementing, and controlling

marketing activities across national borders to satisfy the needs of customers in different
countries. Key concepts in international marketing include market research, product
adaptation, pricing strategies, distribution channels, promotional strategies, and legal and
regulatory compliance. As a newly appointed trainee marketing officer at IBM, this report
aims to provide an in-depth analysis of international marketing, its key concepts, and the
opportunities and challenges it presents to the organization. Furthermore, it will evaluate the
criteria and selection process for entering international markets, discuss various market entry
strategies, and provide recommendations for IBM.

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The interrelationships of the operations function with the other
functions within an organisation.

International marketing refers to the process of planning, promoting, and distributing

products or services to customers in multiple countries or across borders. It involves
conducting market research, adapting marketing strategies, and addressing cultural,
economic, and legal differences in various international markets.

Analyse the scope and key concepts of international marketing

The scope of international marketing encompasses a wide range of activities, including:

Market Research: Understanding the needs, preferences, and behaviors of consumers in
different countries or regions to develop effective marketing strategies.
Product Adaptation: Modifying products or services to meet the specific requirements and
preferences of international markets. This may involve making changes to the design,
packaging, features, or functionality of the product.
Pricing Strategies: Determining appropriate pricing structures considering factors such as
exchange rates, local competition, and purchasing power in different markets.
Distribution Channels: Identifying and establishing effective distribution channels to reach
customers in various countries. This may involve partnerships with local distributors, setting
up subsidiaries, or utilizing e-commerce platforms (Hubbard, 2018).
Promotional Strategies: Developing marketing campaigns that consider cultural nuances,
language differences, and local media channels to effectively communicate with the target
audience.
Legal and Regulatory Compliance: Complying with international trade regulations,
intellectual property rights, and local laws in each market.

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Key concepts in international marketing include:
Global Market Segmentation: Identifying distinct segments within international markets
based on demographic, psychographic, or behavioral characteristics to target specific
customer groups effectively.
Standardization vs. Adaptation: Deciding whether to standardize marketing strategies and
products across multiple markets or adapt them to suit local preferences and cultural
differences.
Global Branding: Building and managing a consistent brand image across different countries
while accommodating local cultural values and preferences.
Cross-Cultural Communication: Understanding and addressing cultural differences,
languages, customs, and traditions to effectively communicate with customers in diverse
markets.

The rationale for an organization to want to market internationally and describe the
various routes to market they can adopt

There are several reasons why organizations may want to market internationally:
Market Expansion: By entering international markets, organizations can tap into new
customer segments, increase their customer base, and generate additional revenue streams.
This is particularly beneficial when the domestic market becomes saturated or experiences
limited growth potential.
Profitability and Economies of Scale: International markets often present opportunities for
higher profit margins due to factors such as lower production costs, access to cheaper raw
materials, or favorable exchange rates. By leveraging economies of scale, organizations can
increase their competitiveness and achieve cost efficiencies (Smarter, 2017).
Diversification and Risk Reduction: Expanding into international markets helps organizations
diversify their business and reduce risks associated with dependence on a single market.
Economic or political fluctuations in one country may not have as significant an impact when
the business operates in multiple regions.
Competitive Advantage: International marketing enables organizations to gain a competitive
edge by offering unique products, technologies, or expertise that are not readily available in
foreign markets.

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This can lead to increased brand recognition, market share, and customer loyalty.

Organizations can adopt various routes to market internationally, depending on their

resources, goals, and market conditions. Some common routes include:
Exporting: Selling products or services to customers in foreign markets through direct or
indirect exporting. Direct exporting involves selling directly to foreign customers or
establishing sales offices in target markets. Indirect exporting involves utilizing
intermediaries such as agents, distributors, or trading companies (Smarter, 2017).
Licensing and Franchising: Granting licenses or franchise agreements to foreign entities to
produce, distribute, and sell products or services under the organization's brand name. This
approach allows organizations to enter new markets quickly while leveraging the local
expertise and resources of the licensees or franchisees.
Joint Ventures and Strategic All.

Entry to a selection of international markets and define the key

success factors

When considering which international market to enter, a few key criteria and a thorough
selection process can help you make your decision. Here are some important factors to
evaluate:
Market Size and Potential: Market size, growth rate, and overall potential need to be
assessed. Look for metrics such as population, GDP, disposable income, consumer trends,
and market forecasts to understand market attractiveness and future prospects.
Competitive landscape: analyze the competitive environment in the target market. Identify
key competitors, their market share, strengths and weaknesses, and strategies. Assess the
barriers to entry and the competitive advantage your company can take advantage of.
Cultural and legal factors: Understanding the cultural, social and legal aspects of the target
market. Factors such as language, customs, traditions, business practices, laws, intellectual
property protection and political stability should be taken into account.

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Cultural compatibility and legal compliance are critical to a successful market entry.
Economic considerations: assessment of economic factors, including tax policy, trade
regulations, labor costs, inflation rates, currency stability and exchange rate fluctuations. You
should assess the general economic climate and potential risks or opportunities for your
business.
Infrastructure and distribution channels: assess the quality and availability of infrastructure,
including transport networks, communication systems, logistics and distribution channels. A
well-developed infrastructure can significantly impact your ability to operate efficiently and
reach customers effectively.
Market access and barriers to entry: You must consider any trade barriers, tariffs, quotas,
licensing requirements or other restrictions that may affect your market entry strategy. Assess
ease of doing business and potential entry barriers such as legal complexities, bureaucratic
processes or cultural differences.
Customer Segmentation and Demand: Identify your target customer segments in the market.
Analyze their preferences, purchasing behavior, purchasing power and needs. Assess the
demand for your products or services and determine if there is a sufficient market for your
offer.
Risk Assessment: Conduct a comprehensive risk assessment, taking into account political,
economic, legal and operational risks. Assess factors such as foreign exchange risk, country
regulations, geopolitical instability and potential supply chain disruptions.
Once these criteria have been assessed, a systematic selection process must be followed. This
process may include the following steps:
Define goals: Clearly define your company goals and strategic goals for entering international
markets. Identify the specific results you want to achieve, such as market expansion, revenue
growth, or diversification.
Check potential markets: Use the criteria listed above to shortlist potential markets that align
with your goals. Eliminate markets that don't meet your core criteria or are too risky.
Market research: Conduct an in-depth market research in selected countries to collect relevant
data and insights. This research should include primary and secondary data collection
methods, market research, interviews and analysis of local market reports (Chang, K. 2016).

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Feasibility Analysis: Assess the feasibility of entering each market, taking into account
factors such as market potential, competitive environment, regulatory environment,
infrastructure and customer demand. Evaluate the fit of your company's capabilities to the
requirements of each market.
Go-to-market strategy: Develop a go-to-market strategy that aligns with your goals and the
characteristics of your target market. Consider options such as exports, licensing, joint
ventures, strategic alliances, acquisitions or establishing a local presence.
Financial analysis: Perform a thorough financial analysis to evaluate the potential costs,
revenues, profitability and return on investment (ROI) associated with entering each market.
Consider factors such as initial investment, ongoing expenses, pricing, and revenue
projections.
Risk Mitigation: Develop a risk mitigation plan to address the identified risks and challenges
of entering each market. Identify strategies to effectively manage political, economic, legal
and operational risks.

Rationale for IBM to the international market

1. Market Expansion and Growth: By entering international markets, IBM can reach new
customer segments, expanding its market reach and increasing its revenue opportunities.

2. Diversification and risk mitigation: International expansion helps IBM diversify its
business and reduce the risks associated with dependence on a single market. It mitigates the
impact of economic fluctuations or political instability in any country.

3. Profitability and economies of scale: International markets may offer higher profit margins
due to factors such as lower production costs, access to cheaper resources, or favorable
exchange rates. IBM can take advantage of economies of scale and increase its
competitiveness.

4. Competitive advantage: International marketing enables IBM to showcase its unique

products, technologies and expertise, gain a competitive advantage over local competitors
and increase brand recognition.

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Routes to target international markets and opportunities/challenges.

1. Export: IBM may sell its products or services directly or indirectly through agents,
distributors or trading companies. This route provides market entry opportunities with lower
initial investment. However, challenges can include language barriers, cultural differences,
and potential channel conflicts.

2. Licensing and Franchising: IBM may grant licenses or franchise agreements to foreign
entities to manufacture, distribute and sell its products. This approach ensures quick market
entry with lower risk and investment. Challenges can include maintaining quality control and
protecting intellectual property rights.

3. Joint Ventures and Strategic Alliances: IBM may work with local partners to establish joint
ventures or strategic alliances. This approach provides access to local knowledge, distribution
networks and shared resources. Challenges include differences in management styles,
conflicting goals and potential cultural conflicts.

4. Foreign direct investment: IBM may establish wholly owned subsidiaries or manufacturing
facilities in foreign markets. This allows for more control, market presence and
customization. Challenges include higher investment costs, legal and regulatory complexities
and political risks.

International market entry criteria and recommendations for IBM

1. Market Potential and Size: IBM should assess the market size, growth potential, and
demand for its products/services. It is recommended to prioritize markets with significant
growth potential and a favorable business environment.

2. Competitive environment: IBM should analyze the competitive environment in the target
markets, including local and global competitors, their market share and differentiation
strategies. Targeting markets with less intense competition or unique needs can provide a
competitive advantage.

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3. Cultural and market fit: IBM should consider cultural compatibility and adaptability of its
products/services to local market preferences and needs. Markets with a strong fit and
potential for successful adaptation should be prioritized.

4. Legal and Regulatory Environment: IBM should assess the legal and regulatory framework
in target markets, including intellectual property protection, trade barriers, and investment
regulations. Entering markets with favorable legal conditions reduces the risk.

Elements of the marketing plan can be adapted or standardised across

international markets

The global vs local debate in international marketing revolves around whether companies
should adopt a standardized global approach or adapt their marketing strategies to suit local
markets. The key arguments in this debate are as follows:

Standardization for Efficiency: Advocates of standardization argue that a global approach

allows companies to achieve cost efficiencies through economies of scale. By offering
standardized products, marketing messages, and branding, companies can streamline
operations, reduce production costs, and maintain consistent brand image across markets.

Adaptation for Market Relevance: Proponents of localization argue that markets differ in
terms of cultural, economic, and social factors, requiring customized marketing strategies. By
adapting products, pricing, promotional activities, and distribution channels to local
preferences, companies can better meet customer needs, improve customer satisfaction, and
gain a competitive advantage (Bisk, 2018).

Consistency vs. Flexibility: Standardization ensures consistent brand messaging and product
offerings, leading to a strong global brand image. On the other hand, localization allows

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companies to respond to local market dynamics, cultural nuances, and customer expectations,
enhancing relevance and building stronger relationships with local customers.

Global Branding vs. Local Identity: Standardization can lead to a cohesive global brand
identity, which may resonate with consumers seeking a consistent experience across borders.
However, localization enables companies to establish a local brand identity, positioning
themselves as more relevant, trustworthy, and connected to local markets.

Resource Allocation: Standardization can help allocate resources efficiently, as companies

can focus on a few standardized products and marketing campaigns. Localization requires
additional resources for research, product adaptation, and customized marketing efforts,
which can be costlier and more time-consuming.

Competitive Advantage: Standardization allows companies to leverage global synergies and

gain a competitive advantage through a consistent value proposition. Localization, on the
other hand, allows companies to differentiate themselves by tailoring offerings to specific
market needs, outperforming competitors who adopt a one-size-fits-all approach (Kotler et
al., 2014).

How the product, pricing, promotional, and distribution approach differs in a variety
of international contexts

Product Approach:

Standardization: Companies may offer standardized products globally, maintaining consistent

features, quality, and branding across markets. This approach is common for products with
universal appeal, such as consumer electronics or luxury brands.
Localization: Companies may adapt their products to suit local preferences, tastes, or
regulatory requirements. This may involve modifying features, packaging, sizes, or
formulations to align with cultural, climatic, or legal differences.
Pricing Approach:

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Standardization: Companies may adopt a global pricing strategy, setting prices uniformly
across markets. This approach assumes similar cost structures, market conditions, and
customer price sensitivity.
Localization: Companies may customize pricing strategies based on local market dynamics,
competition, purchasing power, and cultural factors. This may involve adjusting prices to
reflect currency fluctuations, income levels, or local market conditions.
Promotional Approach:

Standardization: Companies may use consistent promotional messages, campaigns, and

advertising across markets. This approach relies on universal appeal and brand consistency.
Localization: Companies may tailor their promotional activities to reflect cultural nuances,
language preferences, and media channels of each market. This may involve adapting
advertising content, communication styles, and messaging to resonate with local consumers.
Distribution Approach:

Standardization: Companies may use standardized distribution channels and supply chain
systems to ensure consistent product availability and delivery worldwide. This approach
focuses on efficiency and economies of scale.
Localization: Companies may adapt their distribution channels to suit local market
characteristics and customer preferences. This may involve partnerships with local
distributors, setting up local warehouses, or utilizing e-commerce platforms based on market-
specific logistics and customer behaviors.

Using a table, discuss how IBM or any other organisation would apply product, pricing,
promotional, and distribution approaches in two different international markets (countries).
Table: Product, Pricing, Promotional, and Distribution Approaches in International Markets

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 Elements Country A (Standardization) Country B (Localization)

Product Adapt products to local preferences and

Approach Offer standardized products regulations

Customize pricing based on local market

Pricing Approach Set global pricing strategy dynamics and customer price sensitivity

Promotional Use consistent global promotional Tailor promotional activities to local cultural
Approach messages and campaigns nuances and language preferences

Distribution Utilize standardized global distribution Adapt distribution channels to local market
Approach channels characteristics and customer preferences

Explanation:

In Country A, IBM adopts a standardized approach, focusing on cost efficiencies and

maintaining a consistent brand image. The products offered are standardized across markets,
pricing is set uniformly, global promotional messages and campaigns are used, and
standardized distribution channels are utilized.

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In contrast, in Country B, IBM adopts a localization approach to meet local market
preferences and regulations. Products are adapted to suit local preferences and comply with
regulatory requirements. Pricing is customized based on local market dynamics and customer
price sensitivity. Promotional activities are tailored to reflect local cultural nuances and
language preferences. Distribution channels are adapted to suit local market characteristics
and customer preferences.

Implications:

The choice between a global or local approach for IBM or any organization depends on the
context and circumstances. A global approach may be suitable when there are economies of
scale, standardized products, and consistent customer preferences across markets. It allows
for cost efficiencies and a cohesive global brand image. However, it may risk overlooking
local market differences and customer preferences.

How to organize and evaluate international marketing activities

Organizations can adopt various international marketing approaches based on their goals,
resources, target markets, and competitive landscape. Here are the most common approaches:
Global Standardization Approach:
In this approach, companies develop standardized products, marketing messages, and
branding strategies that are consistent across all international markets.
Key features of this approach include uniform product design, centralized decision-making,
and global marketing campaigns.
It leverages economies of scale, cost efficiencies, and a consistent global brand image.
However, it may overlook local market differences and customer preferences.
Localization (Adaptation) Approach:
Organizations using this approach tailor their marketing strategies to suit the unique
characteristics and preferences of each local market.
They adapt products, pricing, promotional activities, and distribution channels to meet local
needs and comply with cultural, legal, and regulatory requirements.

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It enhances customer relevance, builds stronger relationships with local consumers, and
increases market penetration.
However, it requires additional resources, market research, and customization efforts.
Transnational Approach:
This approach combines elements of both global standardization and localization strategies.
Organizations aim to achieve a balance between global integration and local responsiveness.
They maintain a core global strategy while allowing flexibility for local adaptation based on
market conditions and customer preferences.
It emphasizes knowledge sharing, collaboration, and coordination across international
markets.
This approach requires a high level of coordination and collaboration among different units
and regions within the organization.
Glocal Approach:
The glocal approach emphasizes a global mindset with local execution.
Organizations develop a global brand identity and core product offerings while tailoring
marketing strategies to suit local markets.
They strike a balance between maintaining a consistent global brand image and adapting to
local market preferences.
It requires strong communication and coordination between global and local teams to ensure
brand consistency and local relevance.
International Joint Ventures or Partnerships:
Organizations may choose to enter foreign markets through joint ventures or strategic
partnerships with local companies.
This approach allows for leveraging local market knowledge, distribution networks, and
resources.
It reduces entry barriers, provides market access, and mitigates risks associated with
unfamiliar markets.
However, it requires effective management of cross-cultural differences, conflicting
objectives, and potential partner selection challenges.
Country-specific or Regional Focus:
In this approach, organizations prioritize specific countries or regions based on market
potential, growth prospects, or strategic importance.
They allocate resources and design marketing strategies tailored to the specific needs and
dynamics of those markets.

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It allows for a concentrated effort, deeper market penetration, and better understanding of
local customers.
However, it may limit the organization's reach and opportunities in other markets.
It is important for organizations to carefully evaluate their goals, market characteristics, and
available resources when selecting an international marketing approach. A combination of
different approaches or a flexible approach that can be adjusted based on specific markets
may be the most effective strategy. Regular monitoring and evaluation of market
performance and customer feedback help organizations refine their approaches over time
(Cuellar-Healey and Gomez, 2013).

Presentation

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Conclusion

The aforementioned examples indisputably demonstrate the benefits of local and foreign
marketing for the marketer. The marketer wants to get into worldwide business for monetary
advantage and to compete on the global market. This page is divided into many parts that
include a variety of concepts, strategies, laws, divisions, and other subjects. The first part of
this study examines the fundamental idea and future of global marketing. The grounds for
international marketing are discussed in the second part, which also provides a list of
potential market shifts. In the final section, the prerequisites for admission into global
marketing are evaluated. The fourth stage discusses various usage strategies and provides
illustrations. The fifth stage deals with the main domestic and worldwide marketing
problems. The sixth section discusses the marketing mix for international marketing. The
seventh segment discusses global marketing techniques. The eighth section discusses how
home and foreign strategy compares.

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