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International Marketing

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Introduction: International Marketing

The entire report will focus on market entry strategy to help an organization make necessary strategies to enter a foreign market with the help of effective strategies. The market entry strategies to enter the Chinese market of the hotel industry has been extracted to provide the necessary information to enter the new market for a hotel industry of the UK.

Background of organization

Andaz London Liverpool Street is one of the major hotel located in London, UK. It is a start hotel situated in the central London. It was originally named as Great Eastern Hotel. The hotel was developed in 1884. The owner of the hotel is Hyatt Hotels Corporation. The hotel has been included in Grade II in the “National Heritage List for England” since 1993.

Andaz London Liverpool Street

Marketing contributions to business strategy

International marketing

Definition of “international marketing”

The employment of promotional campaigns by industries in various countries is considered to be “international marketing”. With the development in “international marketing”, businesses may still make deals in essentially any nation in the globe. “International marketing” is the interchange of products or services across nations. The system for developing and coordinating service charges, advertising, and distributing is all around the world. In latest days, corporations have been less limited by national frontiers and have become more responsive to intensive strategy (Andreu et al., 2017). The economies are spreading and giving birth to more intensive competition as customers' requirements, selections, choices, and tastes vary. As a response, businesses will react quickly to customers’ expectations through well-defined business models.

Scope of international marketing

Internationalization can open up a business relationship between UK and China. It also can increase peach between the two countries. It brings together individuals from the two countries to collaborate. Furthermore, corporations empower people from the two nations to meet face-to-face for both recreational and trade as part of employee engagement. All of this communication leads to common enrichment not just in trade relations, but also in individual connections and common understanding.

The international marketing also can reduce the risks associated with the global market and opens many opportunities between the two countries

Rationale for why organizations want to internationalize

Organizations go global in order to expand or extend business services. Producing more income, battling for sales revenue, financing possibilities, broadening, reducing spending, and employing talented employees are all perks of approaching international market.

Increases profits

One of the most prevalent objectives for exploring international market is to increase profitability. When country's growth ideas run out, the next obvious key is to look for expansion on a world basis. Spreading the distribution network to other locations expands the existing customers. Revenue grows and increases when the organizational leaders provide engaging ideas and create loyalty across global marketplaces. Providing the products and services in the international marketplace is very crucial to expand the customer base of the company (Zucchella, 2021). At the same time it also increases brand awareness and brand image. At the international market the brand loyalty also increases. The revenue collection also generates and increases.

The aim to promote revenue is tightly correlated to the purpose of greater profit profitability. Even though the company's profit levels are typically favorable, global growth can improve sales revenue (Zucchella, 2021). The rush to grow globally is sometimes based on a desire to establish a brand in emerging markets. Being the first to enter foreign markets can offer important advantages.

Reduces costs

A business may seek to save prices by relocating near to a provider or move operations towards another country taking advantage of cost operational expenses. Doing business globally may lead to new investments (Zucchella, 2021). Another appealing reason to grow globally might be the decreased cost of obtaining clients.

Economy of scale

Some corporations may prefer to diversify their business units as they're more appropriate globally. Expansion through global integration may help organizations in multiple sectors by allowing them to achieve economy of scale (Zucchella, 2021). This is particularly the case for companies operating in smaller, more specialized markets. Furthermore, globalization can be used to recognize or promote a new service extension, product, or brand.

Entering new market and spreading risk

The prevalence of globalization is also attributed to countries of the globe reducing tariffs and removing trade impediments. International business helps the firm to diversify their business and minimize the chances of demand dropping in various places (Zucchella, 2021). Companies doing business in many countries can engage in invention and produce new variations of their products or services, which can safeguard them for declining interest within that product or service.

For attracting new talents

The business organizations try to attract the new talents when enter new markets of foreign country. Becoming international market allows the business organization to get a broad talent pool. Going global helps corporations to tap into a larger pool of talent. Employees that understand different languages and are familiar with cultures are better prepared to communicate with a wider customer base (Zucchella, 2021). Additionally, it enables businesses to form global workforce with local market information and the ability to harness national market raw material by partnering with local producers.

Key opportunities and challenges

The macro trends of China is described with the help of PESTLE analysis to identify the major external factors that impact the market entry to China.

PESTLE analysis

Political factors

· Severe limitaions are the most crucial political elements that affect the Global market. The democratic “Chinese government” is prone to create unexpected policy decisions that damage both international businessmen (Wang et al., 2018). Developing a long-term marketing strategy in China becomes extremely difficult. The presence of “communist party” is considered to be one of the crucial political factors that an organization needs to remember.

· If a service is determined to be irreconcilable with the Communism Party's objectives, it will be disallowed (Wang et al., 2018). As a response, while engaging with the Chinese market, all advertising and product promotion must be automatically updated.

· The worldwide policies are the political elements that influence the Global marketplace. The trade relationship between USA and China has an impact on the Local industry and the exporters (Wang et al., 2018).

Economic factors

· The Chinese economy is already at high, and the Gross domestic product (GDP) is also high. Consumer purchasing behavior is continuously climbing, when cost of labor is among the lowest in the world (Ding et al., 2019). As a consequence, international companies get far more from employing Chinese employees. The industrialization factor in China is also supporting the economic growth, inviting more foreign brands to invest in the nation.

· The rate of Chinese inflation and the hike in property rates are the main variables that hamper the nation's economy. As a result, lending rates are steadily increasing, which is not advantageous to the development of Companies (Ding et al., 2019).

· Another critical feature affecting the Chinese economy is commercial policies. Due to the import fees, many huge firms seem unable to penetrate the Global marketplace, and a few that are able to do so subsequently (Ding et al., 2019).

Social factors

· In China, cultural values shape a significant amount of social attitudes. Factors such as family size and population increase effect how the market runs, assuring that social standards remain constant with cultural influence. The literacy rate in China is well above 90%, and a significant portion of the population has access to the net (Kim et al., 2018).

· China's culture is intertwined to the “Communist political system”. This entails that commodities are governed, and the general public is supportive of the restriction (Kim et al., 2018). The current wave of industrialization is impacting China's social interactions, with essential input a huge spike in online purchasing in the coming days.

Technological factors

The internet is an important technology aspect helping the Chinese market. China has 450 million users, which influence their shopping behaviour. There are reputable online-payment systems in Chin. And credit card use becomes extremely low. Another crucial component that has developed the purchasing power of the Chinese community is the e-commerce platforms. “Taobao” is World leading e-commerce platform, with a significant majority of the population utilizing it to purchase all of the products.

Legal factors

· The establishment of “e-commerce” rules and legislations and its numerous changes, such as consumer rights, tax rates, and intellectual property rights is a legal area in the World economy. “E-commerce” is still an extremely new area in China, and its work is in progress will benefit the existing development strategy (Trofimov, 2020).

· Trade-related laws are always developing and target against with the formation of a new market. However, as an economy reaches its full capabilities, the import tax will indeed be abolished (Trofimov, 2020).

Environmental factors

· China has become one of the most toxic states in the world. As an outcome, many industries must spend money to protect that their creations attain environmental needs. As a response, production price increases, leading to reduced company profits. As a reason, China's priority should be to eliminate mechanisms that cause pollution and safeguard the survival of its industries.

Customer trends

Chinese customers are fond of purchasing luxury products and services and also want the hotel services to be the luxury. There is also a huge social media interaction among the customers. The Chinese hotel industry has continued to expand optimistically, thanks to key considerations such as the advent of digitization and market internationalization, as well as the country's rising taste for luxury items.

Evaluation of international marketing

Marketing role in business strategy

Marketing plays a huge role in business strategy. The roles and responsibilities of marketing impact the business strategies in the following ways:

Sales are promoted through marketing

Marketing boosts the strategy to increase sales by providing information to the customers. One approach that provides information to customers is only through marketing. Customers will have a better understanding of what your product is all about if you do it this way. They will also be aware of the potential benefits of purchasing the product (Morgan et al., 2019). Marketing informs a large number of people about a certain product. Sales will grow whenever customers are well-informed about the brand.

Strategies of revenue opportunities via marketing

Many businesses have found that advertisement is a useful resource for earning revenues. . Decreased production costs is one strategy to enhance profit. The products will be consumed by a large group of people this way. Reduced product costs will draw new purchasers, leading to increased sales. Smaller revenues but constant sales are beneficial (Morgan et al., 2019). Running media marketing and campaigns is another strategy to enhance revenues. That is a simple approach to get the word out about brand items.

Strategies to set specific goals

A company's growth is driven by its objectives and goals. Marketing may help a firm in identifying its priorities. The attractiveness of their product will increase significantly of using specific marketing techniques (Morgan et al., 2019). This will assist the firm to preserve its positive reputation. They also will develop clear goals and objectives so that their workforce is cognizant of their ambitions. These initiatives will also reach their original target.

Factors to influence internationalization

The factors that influence internationalization are described in the following:

The market's potential for expansion

 It is important to check whether the market has the potential to expand. When it is observed that the market is tiny or the company's opportunities of expanding the market are minimal, it is the best way to undertake the task of internationalization with a low-risk. It needs to be done then by low-investment entering approach equivalent to exporting. On the other hand, when the target country has a good growth expectation, the company must consider staying in the country of destination and developing manufacture in that market in the medium or long term.

The political challenge

In some countries, organizations must seek out a strong local company who can deliver knowledge and security about the new industry. The local company will provide information to mitigate this type of issue in sites where it is important to analyze the country's macroeconomic and regulatory system in advance.

Entrance barriers are present

 When there are obstacles to entering, the firm is hesitant to accept exporting as a reasonable alternative since the tariffs make the products too overpriced and unprofitable.

International marketing strategy to meet objectives

For starting an international market entry needs to make effective international marketing strategy that can help meet the objectives of the organization. The strategy includes a marketing mix of 4Ps that helps in making strategies. It includes place, product, price and promotion.

4Ps of the marketing mix

Hotel marketing mix


The international marketing strategy for Andaz London Liverpool Street London Liverpool Street needs to be so that the hotel can grow in the areas that are near some visiting places of China. It will enhance the number of customers arrive in the hotel. The tourist spots in China are numerous that can attract many tourists (Rainanto et al.,  2021). Thereby the marketers of the hotel need to set their strategy to attract the customers from all the regions of China and foreign tourists to visit Andaz London Liverpool Street.


The visitors seek for the hotels that can provide best quality hotel services at an affordable price. By keeping this in mind, the marketers need to set strategies to enhance the product quality and maximize the services by reducing the prices (Rainanto et al.,  2021). It will attract many customers and thus the sales and revenue generation of the hotel will be enhanced. Apart from that, it will also enhance the brand awareness of Andaz London Liverpool Street.


The marketers of Andaz London Liverpool Street can attract a large number of customers to reach the hotel by decreasing the prices of the hotel room fare. In the competitive market in hotel and hospitality industries, low-cost hotel fare are the most crucial factor for developing the hotels and increasing the number of visitors. The price strategy needs to be made depending on the psychology of the customers, product costs, marketing costs, business costs, price elasticity, buying power of the customers, tax rates of Chinese government and the per capita income of the county (Rainanto et al.,  2021).


The marketers of Andaz London Liverpool Street can implement social media marketing, digital marketing, advertisements, broadcasting for promoting the services of the company. The promotional activities can be developed through four different modes including awareness, interest, desire, and action. The marketers need to first provide information about the hotel products, services, locations and prices to the customers. With the information, the customers become interested in the hotel services and they desire for the services. In the final part, the customers make actions to visit the hotels and purchase the products (Rainanto et al., 2021). The promotional activities in the hotel need to be developed to attract most of the people of China to attract them towards the services and facilities of the hotel. Apart from that, involving popular celebrities of China can also increase the interest of the customers and enhance the brand awareness of the hotel.

Entry to the international market

Importance of choosing a right international market

Choosing and selecting of the right international market is very important because without selecting the right market the company can face many internal and external problems and issues to enter the market. Choosing right market can help the company grow and expand its services and customer base in the new market (yang et al., 2017). It will also enhance the organizational growth and opportunities to expand its market share and create a brand image in the international level. This is why it is important to select the right market for entering the new market.

The market size of China regarding the hotel industry is 66 billion dollars together with around 20000 number of hotel businesses are operating in China. The industry provides more than 25 lakhs of employment opportunities. Therefore, it can be stated that the market entry to the hotel and hospitality industry of China will be a benefit for Andaz London Liverpool Street. Apart from that the economic scale and growth of the country is also high. Per capita income, GDP, and profitability of the hotel industry in China are also good. Being the most populated country and having a well-structured economic position of the customers, the demands for luxury hotels and services among the customers are also in a high position (Ding et al., 2019). It has therefore increased the market opportunity for entering the hotel industry. Therefore, it can be stated that the hotel will make a significant growth in the Chinese

International market selection process

International market selection for entering the market of China needs to focus on the various factors that can help the Andaz London Liverpool Street hotel make effective strategies to apply this selection process to become successful. There are some stages include:

Selection based on the macro environment

The foreign market selection technique involves leveraging macro determinants to distinguish between regions with basic advantages and those with none or limited choices. The country's macroeconomic parameters define the overall economy in terms of social, economic, geographic, and political statistics (Silva et al., 2018). For examples, the country's economic data will indicate the gross national product, demography, per capita income, private spending power, and so on. The selection of a destination is also politically influenced stabilization, geopolitical links with the exporters, geographic proximity, weather conditions, and other considerations. Therefore, Andaz London Liverpool Street hotel needs to analyze these factors of Chinese market.

Selection based on market size

The method focuses on different aspects that signify the size and attractiveness of the product's market place. This screening procedure often use proxy values. A proxy variable is a component that is identical or connected to the business's product and represents demand. Other criteria are considered while choosing a nation, such as the nation's economic stage, taxes, and tariffs (Silva et al., 2018). Before, entering the market of a foreign country, Andaz London Liverpool Street needs to analyze the market size, tax rates and other areas of Chinese market.

Selection process in terms of profit making

The third phase of the selection process relies on micro-level characteristics including competitors, entering costs, and profit opportunities. To put it another way, the major primary emphasis is on sustainability (Silva et al., 2018). Andaz London Liverpool Street needs to select the market based on the market competition, the expenditures to enter Chinese market, and profitability to develop the business in China.

Selection process based on target market

The screening process continues with an examination of viable target markets based on the company's products, objectives, and plans (Silva et al., 2018). The company first needs to analyze whether the Chinese market has the potential resources to provide necessary support to the Andaz London Liverpool Street hotel to start its business in the market. Based on the available resources in China, the company should make effective strategies to work in the new market.

Selection of international market and key factors

Generic international market entry strategy

Market entry strategy






A franchise is a supermarket store where an individual or group of individuals charges for the right to run corporate operations on behalf of the corporation. Franchises are available in many countries and allow businesses to develop globally. Franchising often involves great brand equity, since people the targeted audience must be aware about the product and really want to obtain it. Franchising provides well-known corporations with an income source while implementing an indirect management approach (Robson et al., 2018).

The advantages of franchising and licensing are equivalent. The franchisee is responsible for creating extra cost for properties, which is not provided by the franchisor (Robson et al., 2018).

It is more difficult for the franchisor to oversee quality of the service. However, the optimum model is for the new brand to indicate the level of excellence that people can receive, regardless of where they are (Robson et al., 2018).

Joint ventures

Some companies try to decrease the risk of entering a world markets by entering joint ventures with other organizations that want to sell internationally. Joint ventures have the capacity to make more revenues than local businesses since they frequently act as large, private agencies rather than a merge of two micro –enterprises (Nippa and Reuer, 2019). This market entrance method runs the risks of developing a firm membership, but that both sides can develop fair practices and ignore the problem.

Offers companies the incentive to build their capabilities.

Improve operational efficiency to join adjacent businesses or new geographic regions, as well as regain access to trimming equipment.

Access to more facilities, such as qualified personnel and information.

Risks are addressed with a joint venture company.

Offers flexibility: a new partnership may well have a finite life period and then just cover a fraction of a corporation, lowering both their obligation and the risks to the company.

The business's ambitions are often not clear and stated to all people concerned.

The level of understanding, commitment, or materials brought into the enterprise by the different stakeholders is disproportionate.

Poor integration and coordination are the result of complex cultures and working practices.

In the onset, the partnerships do not give significant management and guidance.


Licensing is described as the technique of worldwide operating wherein a business in one country agrees to let every company to exploit the licensor's producing, manufacturing, trademark, and other competence (Cardinali et al., 2019).

The corporation will not have to charge for the product's construction, branding, manufacturing, or selling (Cardinali et al., 2019).

A company's control over the product, including its advertisement, labeling, and delivery, is likely to be destroyed (Cardinali et al., 2019).


Exporting entails promoting the products produced in the nations where they will be supplied. Some companies employ global branding, in which people sell the products in international market without the involvement of third party (Samiee and Chirapanda, 2019). This approach is typically used mostly by companies providing luxury products or just have previously offered their commodities on overseas marketplace.

Larger scale economies and greater margins may result in a greater output.

The organization will have to address the new market in a different way than it did the domestic economy. There will be a multitude of buyers, each to their own justifications for obtaining the product.

The Andaz London Liverpool Street hotel can choose the Joint ventures marketing entry strategy to enter the market as in this strategy the company will get the necessary help from the local company. The local company can help in identifying the market patter, market analysis, customer trends, buying pattern and buying experience of the Chinese customers. In this type of market entry strategy, the managers of the local and foreign company together help each other to solve the disparities and problems to tackle the market entry challenges. It will thus help the foreign company increase its sustainability.

International marketing efforts

Marketing approach


One of the most important features of a standardization marketing plan is that organizations may choose to standard all areas of the product usage or just a fraction of it. Product regularity, customer service, branding, pricing, and distributing are all aspects of standardizing the complete product process. The capacity to employ standard marketing across nations is the broad category of standardization (Lee and Griffith, 2019). Across other ways, it refers to a company's flexibility to utilize the same advertising strategy in different cultural backgrounds. Global standardization is a successful approach when a product is the same and appealing everywhere world. Amazon, one of the largest retail companies, has also used the standardization approach to improve the product and service quality for entering new markets of India to increase its standardization approach.


Negotiation may be a common ground between two companies' disagreements or the solution to an issue which satisfies each companies' needs. Negotiation is a conceptual decision-making process. It involves identifying acceptable dispute targets and choosing behavior patterns to satisfy contradictory interests (Wolf and Alwan, 2019). The important reason is that a negotiated scenario produces a well-defined cognition framework based on the negotiator's prior experiences as well as current concerns. It is the most typical method of addressing differences, and it occurred often in the industry, governmental organizations, and other locations.

Home or international market


Home company

International company


Domestic marketing focuses on marketing efforts carried out on such a regional level. Marketing methods are created to serve clients in a restricted geographic location, usually inside a national border. It solely services to and influence the clients of a nation (Koev et al., 2019).

When marketing methods are used to serve to a world market, it is called to as foreign markets. Generally, organizations begin their services in their home country, and after gaining a competitive edge, they grow their businesses to a multilateral level, where they attempt to join the industries of many regions. As a response, the organization must be knowledgeable of the country's policies and standards (Samiee and Chirapanda, 2019).

Competitors assessment

The domestic company marketers try to attract the customers of the domestic market by providing them with the products and services the customers need.

In the domestic areas, the company needs to identify the local competitors only and also the local market pattern to face the competitors (Koev et al., 2019).

The international marketers try to identify the market trends of the new market. They also try to identify the needs and requirements of the customers at the international markets and thereby develop the services to increase competitiveness (Samiee and Chirapanda, 2019). In this case, the company has to focus on the international clients and competitors and depending on this, they make strategies to increase competitiveness (Samiee and Chirapanda, 2019).

Improving the hotel services and managing the organizational activities, prices, leadership styles and management areas, the company can manage the competitiveness at the international level.

Conclusion and recommendation


Therefore, it can be recommended that the Andaz London Liverpool Street hotel can implement standardization marketing approach as it focuses on to standardize product and service quality improvement. With the standardized approach, the company can enter the new market of China. Joint venture is the most appropriate marketing strategy for the hotel as it will benefit the company to get necessary help and assistance from the local company. To enter the market of a new country, the company needs to analyze the market strengths, potential of resources, market size and customer buying pattern. Apart from that, the company also needs to analyze the external environmental impact in China and depending on that, the company can make effective decisions to enter the market.


Therefore, throughout the entire discussion it is important to conclude that the marketing strategy thus stimulates the business strategy makers to make new strategies to decrease the cost of the products and increase sales of the products to generate revenues.


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