Mktg6002 Marketing | The 5 Assessment Answers

Your company is looking to diversify into the Chinese market. You are tasked with developing a marketing strategy that will help you to enter the Chinese Market. Clearly, there are certain things that you need to consider cultural differences, the particular strategy in entering the new market and the kind of product diversification that would cover needs/gaps in the Chinese market

Task:

First decide what industry your company is operating in. Then perform a marketing plan for your company addressing the 4P’s (Product, Price, Promotion and Place) of marketing, and we expect you to add a fifth ‘P’: People. Remember that the marketing plan must take into consideration the Chinese context.

Your plan should be informed by marketing analysis of the external structures influencing your company. Essentially you should determine what your company is going to produce (product or service?) for the Chinese market; how much it is going to charge (price sensitivity of Chinese market); how it is going to deliver products or services to the customer (Store, Ecommerce, B2B); and how it is going to tell its customers about its products and services (Advertising, PR etc.)..

Core learning outcomes

1.Develop comprehensive understanding of the 5 P’s of marketing and their relationship to the macro-environment
2.Understand how to diversify or adapt products for global markets.
3.Understand the function of a marketing plan within the marketing strategy

Answer:

Introduction

The “advent of globalization and the recent developments in the fields of technology as well as the innovations has drastically modified the way the various business organizations transact their business in the present”(Armstrong et al. 2015). Therefore, the business organizations utilize several new as well as innovative strategies not only for the process of marketing but also to “bring about the overall growth as well as the development of their business organization” (Armstrong et al. 2015). This report will highlight the marketing strategies which a particular organization willing to launch a product in the nation of China needs to follow for their business.

Marketing Mix

The marketing mix is a framework which is utilized to access the market condition and many companies utilize this particular tool to design as well as develop strategies to enhance the success rate of their product or services (Posner, Williams and Posner 2015). This particular tool includes “product, price, place, promotion and people” (Posner, Williams and Posner 2015).

Product

The organization expanding in the nation of China intends to a new innovative kind of bike which is likely to reduce the high rate of pollution of the nation (Zhong 2015). The customers by using this particular kind of bikes will not only be able to improve their health but will also be able to make a positive contribution towards the cause of the environment. These bikes will be called by the name of “Pollution Eating Bikes” and the concerned organization will follow the strategy of product differentiation for this particular product. The normal bikes which the other business organizations of China provide to the people only take into consideration their health factor. However, this particular product using the concept of product differentiation will also try to improve the environment of the nation  (Leonidou, Katsikeas and Morgan 2013). The focus of the product on the concepts of the health of the individuals and also on the environment is likely to appeal in a significant manner to the people of China as it is seen that in the recent times the nation is suffering from the problem of air pollution. Therefore, the organization is hoping that the product will have a high rate of success in China.

Promotion

The business organizations of the present times generally take the help of two kinds of promotional methods for the promotion of the products as well as services offered by them to the customers, namely, the electronic method and the non-electronic methods (Joseph 2014). The media and all the related organs of the nation of China are monitored and controlled by the “Communist Party of China” (Joseph 2014). The national party exercises such a stringent hold on the various organs of media that the “Right to Information”, “Freedom of Speech” and other important rights of the people have been subverted in the recent times (Joseph 2014). Therefore, it is likely that the business organization will have very limited means of promotion and will find it very hard to promote in an effective manner the product to the people from the different parts of the nation (Zhong 2015). The organization will therefore have to take extra care so that the promotional methods taken by them do not offend the “Communist Party of China”. The organization therefore will depend on the various newspapers and also television channels for the process of promotion.

Place

The product will be launched in the major cities of the nation of China like Beijing, Shanghai and others which are suffering from the adverse effects of air pollution (Zhong 2015). Furthermore, it is seen that the people of these cities are more conscious about their health than the people in the rural parts of the nation. Moreover, China has the largest population in the world and it is generally seen that adequate amount of transport facilities are not always in the urban areas of the nation. Furthermore, the people also have to face a much higher amount of traffic in the urban areas. Therefore, these vehicles will be very useful for them as it will not only provide them with an easy means of transport but at the same time taking the help of these bikes they are easily go from one place to another. The best part about this will be that the more the people will these bikes the more positive contribution they will be able to make towards the cause of the environment.

Price

The organization will follow the strategy of cost leadership for the pricing of these bikes. It is significant to note that the factor of price plays a significant role in the contemporary business and it is generally seen that various kinds of products are available to the customers at the same price (Leonidou, Katsikeas and Morgan 2013). Therefore, it can be said that the amount of choices which are available to the customers are more in number than in the past (Leonidou, Katsikeas and Morgan 2013). Thus, the customers generally like to opt for the best quality products at the lowest prices (Leonidou, Katsikeas and Morgan 2013). Therefore, the organization will follow concept of cost leadership with the objective to provide the best quality products to the customers at the lowest prices.

People

The people of the nation of China generally like to take the help of technology in their everyday lives (Joseph 2014). Furthermore, the high level of air pollution which is inflicting the nation is taking a heavy on the lives of the people. Therefore, it can be said that these bikes will be not only popular with the people but also be very helpful to them.

Conclusion

The business world has evolved in a significant manner in the recent times and therefore the various business organizations take the help of various kinds of new as well as innovative strategies for the process of their business. Furthermore, the various organizations also need to analyze the market of the nation thoroughly into which they are trying to expand along with the other considerations.

References

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), pp.122-126.

Joseph, W.A. ed., 2014. Politics in China: an introduction. Oxford University Press, USA.

Leonidou, C.N., Katsikeas, C.S. and Morgan, N.A., 2013. “Greening” the marketing mix: do firms do it and does it pay off?. Journal of the Academy of Marketing Science, 41(2), pp.151-170.

Posner, H., Williams, S. and Posner, H., 2015. Marketing fashion: strategy, branding and promotion. Laurence King Publishing.

Zhong, Y., 2015. Local Government and Politics in China: Challenges from below: Challenges from below. Routledge