Describe the business strategies used by a business operating internationally.
Tesco has a good progress and their strategy is made up of of five elements:
To be a successful international retailer
To grow the core UK business
To be as strong in non-food as in food.
To develop retailing services - such as Tesco Personal Finance, Telecoms and Tesco.com To put community at the heart of what we do.
International marketing is when a company makes one or more marketing mix decisions across borders I.e France-England. Sometimes a business will set up a overseas office instead of operating from the original country, this is so that the business may start marketing strategies across the world with ease.
Decisions are made at the headquarters and these choices will affect the business marketing campaign internationally. Sometimes Each head office in the country where they do trade will market their own campaigns. This means there are different campaigns in different countries this is done because the language id different, and the culture in each of the country's. It’s not always one marketing campaign for all countries.
The marketing campaign is made up of the marketing concept for example: the pricing of the product, the product itself, the placement of the product and the promotion of the product. Talking about all of those examples and going in detail on each one will bring you the basics of the marketing campaign.
When the business markets internationally they have to take into account the customers needs and how to meet them, this is often done with a lot of research and information such as questionnaires and analyzing the market’s buyers. They have to take those points into account so that the marketing strategy works internationally.
A basic marketing strategy is made up of the four “P’s”. These are: 1.The product - what product to pick
2.place - where is best to set up
3.price - how much you will charge and promotion
4.Promotion - how you will sell your item.
All 4 P's work hand in hand. I mean the place will affect the price and the price will affect the product and the product will affect the promotion. So they all link together!
Tesco will use this marketing strategy of the four “P’s” in their international marketing. The place that Tesco use is a variety of different areas ranging from their mega stores in city's and towns to express that our found in smaller towns or motorways. Tesco aims to keep it’s placement in the most common areas that are suitable. For this I mean if they placed a express in a petrol station in Asia they would aim to build the store next to a busy motorway with lots of buyers.
The products that Tesco use range in every country but their strategy is the same. It's to be flexible because each market is unique and requires a different approach. For example in Thailand
customers are use to shopping at traditional wet markets where they can feel the product as opposed to packaged products like in the UK.
Tesco’s strategy for price is to provide good standard at a cheap price to keep customers coming back. Their promotion in the UK is mainly internet and T.V based but overseas in Thailand they use banners and billboards as the main source of advertisement this is because of the difference in technology used between the two countries.
International marketing strategy is when operations change in different countries and improve to the marketing environment. For example in Thailand they prefer their products without packaging and the complex marketing images that are found in the UK, so when they sell the goods in Thiland they won't put it on. The writing on the product would also have to change as the language is different, then the people can understand what the product is. They would also need to change the pricing of the product if the culture tends to spend freely and splash out on a lot of products then it would make sense...
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