The scenario for this report is enumerated with giving advice to Hilton hotel as being a marketing manager.
- Demonstration for contribution of marketing in business strategies of Hilton hotel.
- Evaluation of entry within a selected international market for Hilton hotel.
- Investigation of contribution of elements of marketing plan in international market for Hilton hotel.
- Demonstration of understanding for organizing and evaluating efforts of international marketing for Hilton hotel.
International marketing is defined as the application of marketing principles in more than one country. It is also refers to as conducting the marketing practices or promoting goods or services at global level. American Marketing associations has defined marketing as a procedure which include several activities such as planning, pricing , distribution of products or services to customers. All these Task are executed with the intention to provide information about the services or good offered by company and for generating the brand awareness. Objective of international marketing to create exchanges that satisfy individual as well as business objectives.
International marketing has evolved as modern concept which can be applied to the principles of marketing at global level. International marketing is also considered to be as marketing on large scale taking commercial benefit of international operation differences, similarities and opportunities in order to fulfil international objective as well as goals.
The purpose of the project is to develop the understanding about the concept as well as scope of international marketing. It also has focus on identifying the routes which can be adopted by Hilton Hotel for entering into new market. Report will highlight some approaches related to international marketing.
P 1 Analysing the scope and concept of international marketing
International marketing is recognised as modern concept according to which principles of marketing can be applied to more than one nation. Concept of global marketing demonstrates or indicates the performance of activities carried out within an enterprise .Idea of international marketing helps organisation in developing the plan for promoting goods or services as well as generation of brand awareness at international level. It also involves flow of products or services to end consumer. In addition to there are some variables which are required to be considered by marketing manager when planning to conduct marketing activities at global level these factors are infrastructure , competition , marketing environment , laws , social factors , distribution channel, geography etc. International marketing is also refers to the promotional activities executed by transatlantic companies or across national boundaries. This marketing strategy utilises an extension of the techniques in use in the main nation in which an organisation is operating (Chen and et.al., 2015)
International marketing has wide scope in today's scenarios, as many of the companies including Hilton hotel which is taking high initiatives for expanding business. It has become essential for marketing department in every organisation to develop effective marketing strategies or plan in order to survive in international market. In present marketing environment, marketing strategies which are adopted by firm are not only confined within national boundaries , it has extended to international level. Now, due to increase in globalisation , companies can avail various benefits by entering into new markers. International marketing has wide scope as business entities can product or services at global level. Rise in purchasing power and ever changing customer taste along with the help in gaining the knowledge about these taste has changed the shape of the world altogether. There has been tremendous growth in potential market it is required by marketing manager in Hilton hotel to identify the techniques of marketing and develop the understanding about the market. As this activity will help firm in formulating the appropriate strategies and marketing plan. This strategy will also help an organisation in gaining competitive advantage in global marketing environment.
Imports- business entities purchase product from the global market for reselling in local market. It allows an organisation to bring improvement in production and provide an opportunity to increase profit margin.
Exports-An organisation export their finalized products to international markets or on to their other franchises in global markets where they can sell the products to their localities for generating high revenues as well as profits. The exports of goods or services help firm in recovering the cost of development as well as expanding business.
Contractual agreements- when an organisation plans to expand business operation at international level scope of international marketing exposes it to greater chances of doing a lot more business. Business entity can form contractual agreement in terms of technical assistance , licensing etc.
Joint venturing- It is recognised as a collaborative association of two brands for a reasonable period. This collaboration give birth to new business venture which works individually and accomplish goals (Bahadir, Bharadwaj and Srivastava, 2015)
P2 Explaining the rationale for it to want to market internationally and describing the several routes to market that organisation can adopt
International marketing take place when manger in an organisation utilises a global plan in order to effectively as well as efficiently promote goods or services at international level. There are many reasons why global marketing is very important. It has been realised by marketing manager in Hilton hotel that business entity have limited target market which is not at all sufficient for increasing profit as well as sales. International marketing strategy will help an organisation in exploring as well as capturing several business opportunities. It will also aid business entity in rising share, fostering market growth and increasing customer base which is very essential in terms of increasing profitability as well as achieving success. Increasing the customer base is also crucial in terms of maintaining sustainability in high competitive global environment. Advancement in technologies has supported firm in reaching to international market.
In addition to this there are several factors which has forced Hilton hotel to enter into internation market. These variables are unfavourable economic condition of nation, government force, tough local market,high rates of tax and duties , unequal distribution of resources etc.
Some other pull forces are an entrepreneur desire to explore as well as capture more business opportunities, chance to increase profit etc.
Several routes to market that organisation can adopt
There are many modes by utilising which Hilton hotel can easily enter into international market. These are:
Licensing- This mode of entry into international market include franchising. In licensing route, an organisation is charged with sum amount of money for utilisation of technology for brand name, expertise etc. It is considered to be as an effective mode for those organisations who wants to expand business operation at a large scale.
Strategic alliance-In this mode of entry two organisation form professional relationship with each other in global market. This strategy provides firm an opportunity to increase its competencies and allow firm to gain competitive advantage in global market. The other benefit of this entry mode is that an organisation remain independent and separate. The major challenge associated with this entry mode is that there high chances of conflicts.
Joint venture- it is recognised as equity-based .In this entry mode one company collaborate with international organisation. The major advantage of this entry mode is that it provides firm an ease to enter into international market and develop the understanding about same.
Exporting- There are two approaches which can be used by Hilton hotel company these are direct as well as indirect exporting. In direct exporting method , business entity makes commitment to market overseas on its own behalf. Opportunities generated by this entry mode is that an organisation can have greater control over brand as well as overseas operations (Homburg, JoziÄ‡ and Kuehnl, 2015)
P3 Evaluating the important criteria as well as selection procedure to use when considering which international market to enter
There are mainly five phases involved in the International Marketing Entry Evaluation Procedure. The purpose of the evaluation is to select the appropriate market for selling product or services. When selecting the market for entry , it is essential for marketing manager to conduct risk management and make contingency plan in context of volatile global markets. Marketing manager in an organisation should consider several factors such as opportunities , challenges, ethical as well as legal components when planning to enter into new market. Selection of suitable market is very important in terms of achieving success and accomplishing marketing o