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Scope and key Element of International Market

University: ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT

  • Unit No: 40
  • Level: High school
  • Pages: 17 / Words 4146
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 536
Question :

Questions- This assessment will cover the following questions:

  • Furniture Village Friern Barnet, Local United Kingdom company specialised in selling couch and furniture. Explain key difference between global and local marketing with the help of suitable example.
  • Assess various international marketing techniques that Village Friern Barnet can adopt to expand business in global market.
  • Identify various sources of marketing and provide major difference to local marketing.
  • How approaches of pricing, product, promotional and distribution distinct when using a variety of international market.
Answer :
Organization Selected : Furniture Village Friern Barnet

INTRODUCTION

Marketing is the process of business which look at designing and promoting same to the customer in the market. This report has been based on Furniture Village Friern Barnet, Local United Kingdom company specialised in selling couch and furniture (Kerin and Hartley, 2015). This report highlights the definition, scope and key element of the international market. After that the report highlights the rationale for the going into international market and difficulties also of entering into global market. After that the report highlights the criteria and selection process of selecting process of international market. After that the report goes on to highlights different market entering strategies and overview of the key argument of the local vs Global market. After that the report goes on to highlights the different approach of marketing mix in international market. In the end the report highlights international marketing approaches and home and international orientation of marketing. Also different way through which competitor can be assessed in the Furniture Village Friern Barnet.

MAIN BODY

P1 Scope and key concepts of international marketing

International marketing is the process in which organization used to designed to plan, price and promote the product of the company in the market in front of the consumer. Main difference between local marketing of the company and international marketing is that local marketing used to take place in one nation and international marketing used to take place between more than one nation market (Kotler and et.al., 2015).

Scope of International Marketing

International marketing used to increase the market opportunities for the organization. As international market used to open the wider market area for the business to be covered. As a result Furniture Village Friern Barnet used to ascertain the opportunity available in the larger market. For eg: With the help of the international marketing Furniture Village Friern Barnet can get the information related to the cost effective country to develop the product.

International marketing also increases the number of the customer in the customer base of the company. As international market using company is able to touch the larger number of the customer to promote and sale the product of the company . This eventually help the company in seeing the good scope toward increasing the revenue and goodwill of the company as well (Baker, 2016).

International marketing also opens the scope of developing good product lines of the company. As international marketing helps company in understanding the different culture of the different nation and on the basis of the same different product are developed by the company. This eventually increases the number of the offering of the company in the market.

Key Concept of International marketing

In general there are 8 concept of marketing in both the international and domestic market.

  • Need: International marketing used to look at the need and requirement of the customer of the different nations and on the basis of the same the company used to develop the product which can satisfy the need of more than one nation customer.
  • Demand: Understanding the demand of the customer in the market is the another key concept of international market. As developing the product to satisfy the need is primary function but at the same time understanding the demand of the product which is developed is also a key concept of international marketing.
  • Product: In international marketing the company has to make sure that they used to develop the product in such a way that it can satisfy the need of more than one nation customer together. In this the customer used to understand the culture and the demand of more than one nation. On the basis of the same product is developed by company.

P2 Rationale for it to want to market internationally

There are many reason which is prompting the Furniture Village Friern Barnet to enter into the global market. Some of the reason are as follows:

Improve customer base: It is one of the biggest reason the organization is looking to operate at global level. (Keegan, 2017). As in the local market the customer base is very limited for the organization as a result to improve the customer base the Furniture Village Friern Barnet is looking to expand there operation.

Product line of company: Another reason which has tempt the company to enter into bigger market is to improve the product line of the company. By bringing the good quality of the product with the help of the other nation resources companies can improve there product line.

Increasing the sales and revenue of company: This was the reason which has also drive the company to go into the global market. As in the Global market the company will be selling the product of the company to the larger number of the customer which will eventually help the firm in improving the sales and revenue.

Route to enter into the international market

Acquisition: It is one of the best way through which Furniture Village Friern Barnet can enter into the international market. This route will require the company to takeover the other local organization in the international market. This will help the company in getting the resources easily in the international market.

Joint venture: This is the another way through which Furniture Village Friern Barnet can expand to international market. In this approach the organization to draw a contract with the company in the new market and with the help of the partnership organization has to open up the new organization in the market (Ibeh, Crick and Etemad, 2019).

There are some sort of the disbenefits which are also linked with promoting the operation to the international market. Some of them are as follows:

Finance requirement: Furniture Village Friern Barnet has to keep the close eye on the financial position of the business as operating in the international market always require a good amount of the financial resources as there are many new technique which has to be procure by the organization.

Human Resources: It is the another big issue which is related to operating in the international market. Furniture Village Friern Barnet always require a good amount of the human resources to carry out the operation of the business. As a result it sometime become difficult for the organization to find out the best skilled employee to carry out business activity in the international market.

P3 Selection process can be used to select international market

Criteria may be used to select the international market

Environment and market analysis: It is one of the common selection process which is commonly used by all the Furniture Village Friern Barnet for selecting the international market (Skarmeas, Zeriti and Baltas, 2016). In this selection process following variable has to consider by the organization.

  • GDP Growth: In this organization has to look at the countries growth prospect for the infrastructure and demand prevailing in the market. Eventually help the company in ascertaining the future growth available for the company in new market.
  • Country Risk: In this company used to look at the insecurity and currency devaluation.
  • Political factor: Company used to look at the different influence which can be brought by the political decision. This help the company in ascertain the efficiency of operation.

In this selection process Furniture Village Friern Barnet has to make sure that they used to select the company which used to offer good market potential after ascertaining the above variables.

Analysis of Competition: It is the selection process in which the organization used to select the international market by looking at the number of the competitor available in international market. Some activity which are performed by the Furniture Village Friern Barnet are:

  • Identify main competitor in market.
  • Analysis of economic evolution sales of all the competitor in last 3 year.
  • Also has to find out different distinguishing factor of competitor such as price, channel, market maturity, financial position etc.

Demand Analysis: It is the another selection which is commonly used by all the organization in which the Furniture Village Friern Barnet try to find out products demand international market about the product of the company. Analysis also includes seeing the profile and expected evolution of the product.

Strategies related to selecting the international market

Market Concentration: It is the selection strategy in which the organization used to focus on few selected market. This strategy helps the Furniture Village Friern Barnet in concentrating on the on the company presence in this market. This strategies will help the company in reducing the cost of logistic and also more resources can be dedicated in the market. At the same time it will increase the time period of product life cycle and also will require good amount of resources.

Market Diversification:It is the strategies in which the product is introduce to as many market as possible. It help the company in rapidly increasing the sales of company and also can take the help of different prices to sell the product of the company (Morschett, Schramm-Klein and Zentes, 2015). At the same time there is a reduced number of potential customer in some market and will also increase the time period of product cycle.

P4 Different market entry strategies, including the advantages and disadvantages

Franchising: Franchising is the market entering strategy which is originated from the North American process of market expansion. Generally, this strategy is good for the organization who are able to make or develop the good amount of the goodwill in the internation with the help of the operation in the local market. In this strategy Furniture Village Friern Barnet used to give the permission to the other organization in new market to operate there business with the own name. In return of the same Furniture Village Friern Barnet used to demand fee.

Advantages: Risk related to the different operation of the business is reduced as all the risk are serve by the franchising who is looking to use the permission. Organization will receive the prescribed money. Franchising strategy also help the business in expanding the business more quickly as compare to the other strategy.

Disadvantages: There is low level of the control in the hand of the organization about the operation of the franchising business. As franchiser can make a wrong use of name of the organization.

Amount of the profit ma

Joint venture: It is the another market entering strategy which Furniture Village Friern Barnet used to contact one of the local organization in the new market. After that both the organization used to form a new Furniture Village Friern Barnet to serve the consumer in the new market. Generally, In this strategies risk and rewards are shared equally between both the parties.

Advantages: Joint Venture help the business in getting the better amount of the resources in the organization to perform the different activity in the organization. Also as the amount of the profit and risk are shared equally it help the business in reducing the amount of the risk.

Disadvantages: Joint venture also used to restrict the flexibility in the market as there are cultural difference which generally used occur between the two different nation organization.

Merger: It is the another market entering strategy which is commonly used by all the organization in today's era. In this strategy the organization used to merge with the other organization and used to take over all the official and unofficial right of the company. After merger the smaller company used to work in the name of the big company (Souchon And et.al., 2016).

Advantages: Organization is able to get the information about the different nation culture and on the basis of the same organization used to plan the different activity in the organization. Another benefit of merger is that the Furniture Village Friern Barnet used to get the help of the small organization goodwill.

Disadvantages: Merger always used to create the situation of diseconomies of scale for the Furniture Village Friern Barnet dealing in international market. Also it sometime lead to monopoly of power in new market.

Also Read:- Starting a Business and Role of Innovation In Marketing

P5 Key argument on the topic Local vs Global

Global versus Local. This is one of the common topic of the argument which used to take place in the organization in the present scenario. The reason behind the same is that there is a good trend of the globalization which is adversely getting promoted in the organization. Main element of this argument is Global vs Local marketing. Some of the key point of the argument on the topic Global versus Local marketing topic are as follows:

Cost: This is one of the main point of the argument which generally used to take place in the organization. As all the organization try to find out the cost which will be require to operate in both the market. In this argument local market is one who always used to get the upper hand as the cost require to operate in the local market is always less as compare to that of a international market. As resources required in local market is always less as compare to that of a global market.

Scope: This is the point in the argument in which the organization used to check the benefit and opportunity which will be opened by both the level of the marketing (Yoon and Rim, 2018). It has been always uncertain that global market and marketing always used to have a wider scope to offer to the organization as compare to the Local market and marketing. Global market used to open the wider customer base for the organization and also used to increase the market area coverage of the organization. At the same time the local market or marketing used to limit the amount of the market area coverage of the company.

Growth: It is the point of the argument which always turn the face of the argument toward the global market and marketing. As global market helps the business in seeing a good and potential growth in the future.

P6 Approach differs in international market

There are many difference which generally occur at the time of implementing and carry out the different international marketing in the Furniture Village Friern Barnet. As there are many different type of the approach which is followed by all the organization when it comes of marketing at global market as compare to the local market.

Product Approach: This product generally used to look at developing the offering of the organization in such a way that the larger number of the customer are attracted toward the organization. In the international marketing organization has to take consider many other factor in developing the product. As Furniture Village Friern Barnet has to look at more than one nation culture before developing the product of the company. For example: McDonald has developed the product which can satisfy the need of more than one nation as in US and UK the product of McDonald used to contain the beef but when it comes to India the product used to contain chicken or fish.

Promotion Approach: This approach look at promoting the awareness in people of the nation about the offering of organization to the consumer. In the International marketing the organization does not promote the product on the basis of the culture. As all the culture used to differ from each other in their ethics. For example Lines which are used to promote good in international market are I am loving it, Recreate the world, never give up etc (Ahi and et.al., 2017).

Price Approach: This is the approach which used to be very different in both the market. As in international marketing the organization has to consider more factor before deciding the price of the product. This is the reason the price of the company product is high in the international marketing. Factors are cost of more number of transportation vehicle used, exchange rate fluctuations etc.

Place Approach: This approach look at the distribution channel which will be used to distribute the product of the customer in such a way that the product of the company is with the customer in prescribed time.. In the international marketing the organization has to make sure that they uses more adverse distribution channel in the Furniture Village Friern Barnet as in the international marketing includes overseas market.

P7 Analyse the various international marketing approaches

International marketing approach are the ways through which the product of the organization can be promoted in the international market with the sole motive of attracting the eye of the international customer toward the product of the organization. There are mainly two type of the international marketing approach which can be adopt by cited firm to market the product of the company in the international market.

Centralized Approach to international marketing

It is the approach of the international marketing in which all policy, decision making and the plan are execute at the marketing team of organization headquartered. In this approach organization has to make sure that they used to collect the different data about the different culture of the different country and on the basis of the same different marketing strategy are developed for the different nation (Martin and Javalgi, 2016). On the basis of that organization used to implement the different strategy in the different nation so that the Furniture Village Friern Barnet is able to get the maximum out of all the nation. This approach require some sort of the requirement in the organization. Requirement are as follows:

  • Furniture Village Friern Barnet must have the highly skilled and competent worker in the HR department who can understand both local as well as in higher market.
  • The product of the company is good enough to serve more than one country with different nation culture.
  • The resources which are used has to make sure that are not having the localization aspect in the same.

There are some sort of the precaution which also has to be consider by the organization at the time of using the Centralized approach of the marketing such as organization has to make sure that they used to focus on developing the in-house capability rather than other. Also organization has to keep in mind that centralized international marketing sometime may be slow so they have to remove every growth barrier related to it.

Decentralized approach to international marketing

Decentralized approach of the marketing is the approach in which the team of the marketing is send out in the field by the Furniture Village Friern Barnet with the sole motive of performing the variety of the marketing activity in the nation itself. Some of the suitable condition or requirement for this type of the approach are as follows:

  • Product of the company is heavily regulated in the industries (Najafi-Tavani, Sharifi and Najafi-Tavani, 2016).
  • Product of the company is having that sort of the goodwill to be sell in the other market.
  • Resources are very limited in the organization.

Decentralized international marketing used to provide the some sort of the control for the organization over the how the brand of the company is represent in the market. At the same time the Furniture Village Friern Barnet also has to make sure that they keep a close eye on the team as there are chance of corruption in it.

P8 Compare home and international orientation

Marketing orientation is the approach which looks at the reacting to the different needs and wants of the customer in the market. Generally, In the orientation the Furniture Village Friern Barnet used to develop the marketing strategies on the basis of the different information about the customer needs and wants in the nation. Rather than focusing on what does company think about the customer needs and wants.

Home market orientation

Home market orientation is the another name for the orientation which is done for the local marketing. In this approach the Furniture Village Friern Barnet used to see the need and wants of the local customer and on the basis of the information which is gather. With the help of the same product is developed to satisfy the need of the customer. Generally this type of the orientation is implemented with the help of ascertaining the information with the help of the market research in the local market or the customer feedback.

International market orientation

In this approach the organization used to see the need and wants of the international as well as the local customer. On the basis of the information gather the company used to develop customer friendly product.. Generally this type of the orientation is implemented with the help of analysing the offering of the competitor in the organization and also by analysing the external environment of the nation (Souchon And et.al., 2016).

Way to assess the competitor

There is a five step process which may be used by the organization to assess the different competitor in the organization. The step are as follows:

  • Identify your competitors: This is the first step in which the organization has to find out the competitor which is present in the new market for selling the product of the company.
  • Gather Information about main competitor: It is the step in which the organization has to choose the main competitor and has to gather the different information like product offering, price and technique.
  • Analysis strength and weakness: It is the step in which organization has to find out the different strength and weakness of competitor in the organization and on the basis of the same different strategies has to be made.
  • Talk to your competitor: It is the step in which organization has to known the competitor personally by talking with them.
  • Identify your competitor advantages: In the last step organization has to identify the USP of the organization.

CONCLUSION

After going through the above report it has been summarized that there is a good scope and element which used to differ from local market. After that the organization went on to summarized that international marketing can improve the customer base and market are of the company at the same it also used to increase the financial requirement of the company. After that the report goes on to summarized that there are many selection process to enter into international market. After that the report goes on to summarized that there are many strategies which can be adopt by the company such as joint venture, merger and franchising. After that the report has summarized difference in the marketing mix of approach in local and international market. In the end the report has summarized various international marketing approaches and comparison between the orientation of home and away orientation.

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