The following questions are required to answer by the researcher:
- Explain that how in international context marketing contributes to business strategies.
- Assess entry to a selection of international market and explain the major success factors.
- Describe how components of market plan can be adopted or standardized I different international markets.
- Explain the ways to organize and assess international marketing efforts (multinational,global,transnational,meta-national etc)
International marketing define as an effective application of marketing principles which helps in satisfying needs of people in across the national borders. This is an appropriate approach which used by those type of organization who expand their business at global level. Along with this, globalisation also set platform for various business companies to established their operation in effective manner (Akaka, Vargo and Lusch, 2013). Basically the main aim of international marketing is to determine the market where company sell their products and services with the purpose of attaining better results. With the help of this company enhance their productivity level global market. In addition of this, concept of international marketing define effective planning and executing marketing activities which may leads in satisfying customers needs and wants in most appropriate manner. Present report is based on D&B Hoovers, is a research company that provide information in various companies by using primary platform which name is Hoovers. They wants to expand their business at global level. For this, company needs to be evaluate entire strategies which required at the time of operating their business activities. In this discussed about key concept of international marketing. In addition of this, selection process mentioned which used b y the company at the time of entering in global market.
P1 Analysis of scope and concept of international marketing
International marketing is an important concept in which business organization set their activities with the purpose of attaining maximum outcomes in more effective manner. In this marketing is also consider as an appropriate concept which support business to deliver their quality products and services. With the help of this company create strong customers base which directly contribute in attaining higher success at market place. If any local and small business wants to expand their business activities then they use marketing concept in which they easily sell as well as deliver their services as per customers demands.
In context of D&B Hoovers, is research company in which they provide information companies. Along with this, they wants to introduce new and innovative services to their customers. For this company use effective marketing concept which may leads in enhancing their profitability level. Now business organization wants to expand their activities in another countries (MARKET ENTRY STRATEGIES, 2018). By this company enhance their brand image and also tries to maintain their sustainability for longer period of time. In consideration of this, it is important for business to effectively understand the concept of international marketing which may leads in improving the overall performance level of this company at global market. In this context, there are some effective factors which is required by company for establish their operations at global level. All these can be understood by following points:
Import: It is one of the important scope of international marketing in which company import products and services form another country. In this, company buy products and services at cheap rate and sell at higher cost in same nation. With the help of this firm add number of variety products in their process which may leads in enhancing the profitability level of the company at market place. D&B Hoovers is a research company in which they buy their products and information services from other nation at cheaper rate. By their they easily accomplish their target in most effective manner (Berthon and et. al., 2012).
Export: It is also consider as an important scope of international marketing in which management of the company only deliver their service. In context of this, when a company start expand their business in another counties in which they export their services across the national boundaries. With the help of this they enhance their brand image at global market and also capture larger market share.
Contractual Agreements: It is also an effective scope of international marketing which may leads in enhancing the brand image at global level. It include formation of contracts with other in which company get number of chances to enhance their rand image at market place. This type of contract consider as an effective licensing, technical understanding and co-production which may leads in exchanging fees which agreed by all the parties who are bound in an contract.
P2 Explaining the rationale for international expansion along with route to overseas market
Organisations enlarge business from domestic to international market to increase customer base and enhance sales. D&B Hoovers has expanded firm to grab attention of large number of people and improve market reach. This help management to utilise funds, material and manpower adequately; thereby deliver appropriate products and services in according to needs and wants of public. Market consists numerous firms which are operating business in same sector. So, it is essential that D&B Hoovers to have branches in different nations to attract people and generate adequate revenue from business. These are various advantages that administration have if business is expanded from local level to international market which are described below:
Diversification of risk: This determine that management require to have complete information about difficulties and challenges that might occur if business operations are conducted globally. Administration conduct PESTEL analysis to acknowledge government policies, economic conditions, technological components and social conditions (Cadogan, 2012). This help D&B Hoovers to conduct business and expand business in US accordingly which help management to have adequate material and manpower. This benefit company to make system function effectively and establish appropriate position and image in market. Skilled and competent workers will be able to handle challenges and difficulties in adequate manner.
Leveraging on resources and advantages: This is another reason that administration get encourage to select particular nation is availability of resources. This help management to acquire adequate material and manpower to conduct business operations and deliver appropriate items and services in according to needs and wants of people. D&B Hoovers is enlarging business in US which help executive to have adequate manpower which are skilled and competent in respect to organisation. Thus, members perform tasks effectively and provide quality services to people.
Expanding into untouched market: it can be identified that there are more opportunities in the international market when compared with local market. The business organisation can make use of these available opportunities to achieve growth. DNB Hoovers is looking to expand its operations in the USA market as it is an ideal destination for an organisation working in the technology sector. The expansion will make sure that this organisation is able to ascertain better sales and growth opportunities for this organisation.
Brand Awareness: An organisation expanding into international level will be able to enhance its reach and more number of customers will be aware about existence of such institution. Organisation carrying renowned brand name have to exert less on marketing and promotional activities as they have their own loyal base of customers (Cavusgil and Cavusgil, 2012). The organisation possessing brand name is able to stand out of its competitor and will impact is credibility as well.
There can be numerous ways through which an organisation will be able to internationalise their operations such as:
Acquiring a running business: the most common approach which leads to international expansion is that this organisation acquires which is already carrying out its operations in the United States of America. This will minimize the effort which are to put in by the management in starting the business.
Joint Venture: This is another recommended approach to internationalisation which DMB can form a partnership with an organisation carrying out operations in the similar domain. In this mode of expansion profits and losses will be shared as per agreed percentages.
Direct sales: This organisation can directly export its products and services to the USA market without venturing there physically. It is termed as one of the most cost-effective approach to sell products and services in the international market (Chung, Lu Wang and Huang, 2012).
P3 Evaluation of key criteria and selection process while considering international expansion
Administration require to have accurate and complete information about system capabilities and market conditions, thereby make decisions to expand business in different nations. Executive expand business from local market to international so that they gave large customers base and is able to enhance sales. It is essential that company analyse countries before expanding business so that appropriate nation which have adequate number of public are selected. These are various tactics that are considered by management for selection of international location for expansion are defined below:
Culture: This determine that administration require to provide adequate working environment and conditions to members. It is necessary that D&B Hoovers give effective culture to members and customers. This help management to retain employees and people for longer period. As, it may be not possible that products are in according to taste and preference of people, this impact on market image and reputation of firm. Company consists people from various background, they are from different nations. So, their requirements and demands vary from each other. Along this, as D&B Hoovers is operating business in different nations, so employees have knowledge about different languages which impact on business. Employer require to give appropriate conditions and environment to make members work with each other and coordinate them.
Legal and regulatory barriers: This concept defines that government formed various restrictions to secure and protect local firms from being exploited by foreign companies (Fletcher and Crawford, 2013). Exchange rate, taxation and various other strategies are constituted by regulatory bodies to manage business operations. D&B Hoovers, management require to take expert advice and make strategies in respect to import and export laws so that business operations are executed effectively.
Foreign Government regulations: This determine that regulatory bodies formulate policies and tactics to manage and conduct business operations. D&B Hoovers which is expanding business from domestic to international market require that administration to have information about government of nation in which operations are conducted. Various programmes and schemes were constituted by regulatory bodies to provide benefits and advantage to promote firms to expand business and conduct operations globally.
Business case: Market survey is conducted by management which help them to acknowledge accurate information about market conditions. Along this, they even are able to analyse and identify that whether business operations conducted by them is profitable or not. Administration acknowledge demands of public, economic, political and technological data to execute activities according to country. Thus, seniors make appropriate judgements in respect to expanding business in internation