Introduction
Marketing is an important concept that needs a thorough analysis. This paper will focus on the various case studies and how their decision making affect the marketing process. Before marketers enter a market, they should understand how the market operates. They should also find out if there are prospects of a new market. Market analysis forms an indispensable part of the marketing process. The need for market analysis is because the market will be understood and the organization, which is to enter the market, will be prepared to enter the market. The choice of the market entry strategy is a crucial decision to make for most international marketers. This decision is hard to make in international marketing process. There are different market entry strategies that can be used in marketing. These strategies will determine the market that the company is entering and products that are being sold. Before marketers enter an export market, they will have to use some tools that will be used for promotional purposes. It is a significant development for marketing in export markets. Markets will have to use promotional tools when entering new markets. These tools are also used when organizations want to increase sales or make adjustments to the volumes of sales.
Question 1
One of the tools that can be used to understand the market is the use of PEST-E analysis tool. This is a powerful tool that is used to understand the macro and micro environment of the market. One parameter that should be understood is the political environment. The need for understand the environment is because the politics of a given environment will affect the way the business will operate. Another factor in this tool is the economic status of the new environment. This factor gives the economic view of the new environment. There is also a need to understand the socio-cultural context of the market. The socio-cultural aspect is where the market is understood in the way it operates. The example of Tata Company, they have had to understand the economic environment of India before manufacturing Tata Nano. This car model fits the India market because of the majority of the population and the economic status of the country. Another factor is technological development. For the Teepack Company, the double-chamber tea bag fits most of the developed countries. Their sale was determined through the analysis of the countries that sold these types of bags. The UK market does not favor the double-chamber tea bags. This is the reason why the company sells a small amount of these bags to the UK. Another factor is that of environmental. The environmental aspect is where the environment and policies that control the use of the environment are considered when making the decisions enter a new market. Tata Company, for example, considers developed countries like America, a no-go zone for economical vehicles, as Tata Nano. This situation is because the environmental concern in these countries is extreme where the conservation of the environment is a crucial factor to be considered in these countries.
Another tool is SWOT analysis. SWOT is the tool where the strengths, weaknesses, opportunities, and threats of a given market are considered. It is a powerful tool because with this tool, the market threats, and opportunities can be understood. Man United Football Club took advantage of the mass commercialization of the football sport in the 1990s. The commercialization was an opportunity that was used, by the club, to be at the top of the soccer game (McDonald, & Wilson, 2011).
Another tool is that of competitor analysis. With this tool, the organization will assess competitors and the brands that they offer. There will also be benchmarking of the competitors. Benchmarking is shown in the case study where Tata Group benchmarked with Jaguar and Landrover. They bought these brands so that they would enter developed countries’ market.
Question 2
Hyundai will have advertised the cheap car model that they plan to manufacture. This advertising will be done in developing countries because of the high affinity of these vehicles in these countries. There will also be the use of sales promotion where customers will offer discounts on the products that they are required to buy.
Jarlsberg Company has made use of advertising to the consumer of the cheese in the United States. It remains one a favorite cheese brand in the United States. With the development of cheese brands in the world, it is crucial to understand the requirements of the cheese products in given markets of interest. There has been the involvement of Personal Selling where ladies have been targeted in the sales. This trend is from a trend where it has been known that ladies are the consumers of Jarlsberg cheese (Wilson et al., 2012).
There is also the sales promotion and advertising of cheese from Jarlsbery with the use of Norseland Inc. Norseland is a company that was founded 1978. The company undertook marketing, and distribution of Jarlsberg Cheese in the United States. There would be the use of the promotional mix of the company in order to understand the requirements for the US market.
There would be the use of public relations in the advertising because of the involvement of Norseland Inc., in the advertising and the marketing process. Public relations tool is a significant development because of the need to ensure that there is a good relationship with the consumers of cheese in the United States. With the use of a professional marketer, most of the promotional marketing mix factors will be included in the marketing process. With the use of professional marketers, it would mean that there is involvement of the third-parties in the marketing process (Czinkota, & Ronkainen, 2012).
Honda Motorcycles is another example where the promotional mix strategies is used in the marketing process. It is a significant development to have a way in which there will be the use of the promotional mix. The understanding of the market and the involvement of the market are a significant development of the market that should be known in the whole process.
Question 4
Tata Company, in their quest to conquer the developed world, has to consider different issues. One of the issues that should be considered in choosing a market entry strategy into developed world is environment, and class of people in the market. Tata Group would like to make cheaper car models for the developed world. This strategy is thwarted with the need to have vehicles which are environment-friendly. This situation is one of the requirements for new markets. Tata had to make a hard decision in buying Jaguar and Landrover car models. Although it put a lot of pressure in their budget, they believed that this would enable them to enter the developed countries market. This decision was a hard one to make because there was no assurance that the purchase would still keep the trust that the customers had with the brands. One of the possibilities is that the customers would no longer want to be associated with the brand because the manufacturers are now different. This possibility could also mean that the technology could be changed (Kotler, 2011).
Zara is another example where market entry strategies presented to be a hard. This situation is because before the company decided to enter into other countries, many factors had to be put into place. One of the factors that were of considerable concern for Zara is competition in the markets. There was the need to analyze the competition in the clothing industry before the decision to enter the new market was made. This decision is shown in the way the company had to consider the prospects of companies like Gap, Inc., and H&M (Malhotra, 2010).
Apart from the competition, there are other factors like culture and the economic status of the new market. This factor will determine the products that will be sold in these countries. The culture of the market that is to be entered plays a vital role in deciding the markets that should be explored. Zara Company made small steps into getting to international markets.
Conclusion
Market entry strategies form difficult decisions to be made in deciding to enter into new markets. The challenge with making such decisions is because there are many factors that need to be balanced. These factors help understand the requirements that are need to be considered in entering these new markets. In conclusion, there are many factors that should be assessed before entering a market. This is a significant development to be considered when entering a market. When entering an export market, it is crucial to understand the promotional strategies that should be used in that market. Companies should establish promotional strategies that they will use in these markets. This establishment will ensure that there is an understanding of the ways in which the promotional strategies will be used in the process.
References
Czinkota, M., & Ronkainen, I. (2012). International marketing. Cengage Learning.
Kotler, P. (2011). Reinventing marketing to manage the environmental imperative. Journal of Marketing, 75(4), 132-135.
Malhotra, N. K. (2010). Marketing research: An applied orientation (Vol. 834). New Jersey: Pearson Education.
McDonald, M., & Wilson, H. (2011). Marketing plans: How to prepare them, how to use them. John Wiley & Sons.
Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm (No. 2nd Eu). McGraw Hill.
