INTERNATIONAL MARKETING
Introduction
Market ventures into new markets have become a modern tool of business success used by various businesses to ensure and sustain their positions. The basic acknowledgement of the various international marketing elements of marketing which are price, product, place and promotion has catapulted various businesses to greater levels of performance. Through strategy implementation and evaluation, businesses have been on the steadfast path to success. However, the need for re-evaluation of the previous strategies incorporated has ever been witnessed due to the changing business frontier. Thus, I will evaluate the various aspects that need proper evaluation in venturing into japan by Tarocash pty that need modification and modification. Additionally, I will evaluate the various environmental aspects that need comprehension in making venture to Japan.
Spalton (2010 p90-156) asserts that the elements of a marketing process entail the controllable techniques that a company can blend to produce the required response in the market of entry. Furthermore, Spalton (2010 p90-156) asserts that the elements of the marketing process denote the holistic aspects that a firm and use and undertake to make an impact on the demand of the consumers. As such, for Tarocash Pty Ltd to maintain a formidable place in Japan, the four elements of marketing, product, price, place and promotion should play an integral role in their decision making.
Product
The Japanese market is highly culturally construed in regards to the dress code and ideals in clothing. As compared to other nations, the country sustains an intertwined traditional and modern frontier of clothing. Hence, effective data mining is integral in sustaining performance in the new market. The company should research on the different clothing patterns in the country in order to sustain cross cultural competency
Price
Localized pricing strategy approach is highly profitable for Tarocash when expanding to Japan. A penetration pricing policy is highly commendable in pricing its products in japan. Through a penetration pricing mandate that is based on low pricing, the company will manage to capture and increased market base of operation. Furthermore, the penetration pricing policy is highly commendable since the company will manage to acquire clients in the new market.
Place
Japan is a highly industrious nation. Accordingly, the country has sustained a plausible growth that has been pegged on various manufacturing based towns. As a clear example, globalization has given rise to the mega cities. Spalton (2010 p90-156) asserts that over 60% of the population worldwide live in megacities with better transportation and communication network. Thus, for Tarocash Pty Ltd to maintain proper success, it should locate the megacity places and commence entry. Various businesses have realised that in order to sustain operations, looking for better regions of production that are cost effective is imperative. In reference to Spalton (2010 p90-156) majority of the businesses operating in japan have sought outsourcing production in china to sustain market dominance. Thus, for Tarocash to sustain a proper operative mandate, it should invest into proper mandates in ensuring their products are availed.
Promotion
Market ventures have been driven by improved communication and infrastructure. Most importantly, the improvement in communication ensures that Tarocash Pty Ltd can promote its products via the internet in the various markets it will venture. From the evaluation of Japan, it is highly advanced in regards to the communication infrastructure. As such, the company needs to invest highly into plausible infrastructure to sustain an effective frontier in the market of operation. Spalton (2010 p90-156) asserts that the Japanese apparel market is highly based on online shopping. As such, majority of the customers highly incorporate online shopping as an avenue of seeking the right deals in order to make the right purchases. Extensive researches into web site optimisation coupled with customer acquisition strategies are highly effective in the market venture strategies into japan.
Through the above elements of marketing that need change, there are various consequences that Tarocash needs to take heed when venturing into the Japanese market.
Market forces in japan
The term market forces in business denote the economic forces of demand and supply that affect business pricing, output and competitive responses. Tarocash will operate in an environment whereby the various forces that shape its organisational response will be demand, supply and technology.
Demand
Tarocash is an organisation that operates in a highly saturated industry whose survival entails proper comprehension of the consumers in Japan. Admittedly, in the recent times, the shift from low priced apparels to low cost apparels has been evident among the consumers in Japan.
Supply
Supply forces greatly shape the organisational response of a business. Accordingly, some of the supply forces that will impact on Tarocash include; increase in number of suppliers in the market and crucial developments in the supply market. Among the recent developments in the supply market is the opening up of the Chinese economy. Lee (2005 p1-25), states that the opening up of China market will enable Tarocash to source cheap raw materials from the suppliers in China in their production of apparels
Technology
Technology is the lifeline that sustains the successful operations of business in both apparels industry and other industries in Japan. Hence in sustaining a plausible avenue of operation, Tarocash should significantly invest into proper infrastructure in regards to incorporating the right marketing to meet the consumer needs.
Legal aspects
As the second aspect of concern, Tarocash should acknowledge that it is related profoundly to the societal and economic expectations regarding production of goods and services in Japan. Additionally, the company should meet the legal frameworks stated by the government in the areas of operation (Trice, J and Belasco 2001 p40-51). Hence, the organizations conform to the different legal expectations through, payment of taxes, production of up to standard goods and services and non-divergence to illegal practices. Through conforming to the responsibilities, Tarocash will maintain a mutual relationship with both the society and the government.
Cultural aspects
Business and cultural environments construe or shape the ways in which a business conducts its operations coupled with making decisions. As such, some of the cultural factors that shape the organisational behaviour at Tarocash are; age attributes consumer trend and so forth in Japan. As such, in Japan the apparels market, age attribute has been a cultural aspect of concern. Admittedly Lee (2005 p1-25), asserts that the young population have presented a highly sophisticated age bracket in which the traditional products have to be eliminated by Tarocash. The internalisation of internet services by Tarocash will manage to sweep the young generation or the baby boomer generation with behavioural attributes of online chatting, gaming, and reliance on internet for majority of their daily activities. On the other hand, Lee (2005 p1-25) has been ascertaining that the older population has been on the rise. As such, estimations reveal that by 2050, Japan will possess significantly high population of old persons as compared to the other countries. Thus, as a strategy to meet the growing old population, Tarocash should invest extensively to e-business. Through online transactions, many will be relieved of the burden of commuting to and from the various supermarkets.
Product consequences
Marketing to businesses is quite different as compared to marketing to consumers. As such, when marketing to businesses it is imperative that Tarocash emphasizes on incorporating both high valued product launch in Japan. It is imperative that the company invests into premium pricing of their products. As such, it is highly imperative that an organisational policy construed towards sustaining plausible market position is incorporated. To sustain market operations in Japan, Tarocash should invest in;
Highly targeted marketing
In marketing to businesses, it is imperative to make extensive research in regards to the policies, vision and various ideals of a single business. In marketing products to Japan, investment into individual business marketing packages is effective. Accordingly, capturing a market niche in terms of product purchase has a ripple effect. As a large entity with extensive employee base, the employees have great influence on a wider market scope. Thus, in the instance that the Japanese market becomes a loyal client, a multiplicative effect is bound to ensue. Hence in marketing to businesses, targeted marketing policies are effective. Furthermore, Eric (2012 p89-153) affirms that in marketing to japan, sales representatives are highly effective and sole mode of success in attaining an effective marketing ploy. Person centred marketing generates a closer relationship with the business target. As opposed to mass marketing, target marketing nurtures more strategic relationship with the business of operation.
Individualized market pricing
Business to business marketing is highly individualized and personal in regards to a marketing pitch undertaken. As a business to new market niche contract in regards to product purchasing, it is imperative to note that a new market niche is daunting in product distribution. Bulk buying behaviour of businesses entails a proper pricing initiative which is contrary to marketing to consumers. Thus, for an effective marketing pitch, business to business marketing is highly price sensitive with need for constant re-negotiation of prices inculcated.
Product aspects
Branding
In operating within japan it is imperative that an effective branding mandate is incorporated. When venturing to the new market, it is imperative that the organization sustains cross cultural competency in regards to the branding aspect of the organization. In pegging or naming its products, it imperative that the organization meets the needs of the market. Through naming its products within the language scope in Japan, the organization is bound to sustain effective popularity within the market.
Economic consequence
Economic responsibility constitutes the most fundamental obligation for any business organization venturing into japan. It mainly constitutes two important points to ponder for any business. Firstly, any business has the responsibility of production of goods and services required by the society. Secondly, the business should focus on the creation of jobs thus generating growth in the economy (Trice, J and Belasco 2001 p40-51). In a view to meet the economic responsibilities, the business has to use strategies such as employment of the people from the local community, operational efficiency and infrastructural change in the economy through various projects. Furthermore analysing the business environment is one of the key responsibilities of managers, business consultants and strategists at Tarocash. It is important to evaluate both the internal and external factors that impact on business in Japan. The growth and survival of a business is pegged on the accuracy and effectiveness of environmental analysis.
Managers need to choose the strategy of business with which to operate and lead their businesses. After initial investigations, it is important to establish the most effective method of operation. Some business situations are better faced on the basis of economic feasibility while others require appropriateness.
Establishing the economic feasibility of the venture into japan is an important capital budgeting decision. Managers need to choose projects that make financial sense and generate maximum returns for shareholder’s wealth. However, the venture into Japan must also be appropriate and responsible to the environment, the community, the government and the general society.
Conclusion
The marketing frontier is dynamic and ever developing. As such, through the changing marketing frontier, businesses have had to incorporate different strategies to ensure plausible performance levels. Thus, from the analysis of Tarocash Pty Ltd, it is evident that disparities in strategies are evident and the businesses have incorporated various strategies to succeed both in the local and international business framework. However, the various costs, disadvantages and challenges in marketing have been significant hindrances to successful performance of the businesses. Thus, to ensure proper performance, both of the businesses analysed and international frameworks require novel and better strategies to maintain competency in the various locations of operation.
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