Globalization has increased the level of competition in the market with companies looking for the best approaches to enter into new markets. The number of multinationals have increased and the control and resources that they have in countries all over the world makes competing with these brands difficult. Companies therefore, need to conduct proper research and development before making a decision on the companies that they deem to be fit for their products. Depending on the competition, customer base, cultural aspects, and the industry a company needs to make a strategic choice based on these aspects. Assuming that one was a marketing assistant this is a report that gives the approach that a company would use to select a country and marketing strategies that would be used to enter the new market and engage with the customers.
HP is one of the successful companies in Software and hardware production in the world and is based in California United States. Although the company has had massive success in the Western world, the same cannot be said of Eastern Asia and Chinese market. The brand is not very popular in East Asia and a better marketing mix needs to be employed to ensure that the company engages with the customers in these regions. HP has had to reinvent itself in the market with some of its brands such as Compaq being phased out and HP taking over as the main brand for the entity moving forward. It is therefore increasingly becoming important for the brand to look for more vibrant markets where it can reach out and connect with the customers to increase its overall market share and revenue base. China is one of the regions where the company should look to widen their scope and invest in.
Justification of China as the country of choice
China is the fastest growing economy in the world with approximately more than 1.3 billion people that offer the required customer base. The country has the largest middle class in the world with more people moving to the cities. The level of IT competition in the Chinese market is stiff since other software and hardware companies have discovered the potential of the Chinese market as a major potential for massive growth and development for companies (Gillespie and Hennessey, 2010). The country is also only second to US in terms of the GDP with an approximate value of 8.2 trillion dollars making the countrys purchasing power one of the highest at 12 trillion dollars (DeMoij, 2013). China sells a lot of its products to the Western countries thereby making it a good destination for Western companies since the level of red-tape is significantly reduced. The formation of strategic alliances among companies in China with the Western companies makes it a natural hub for new entrants in the market.
China is a diverse market drawing from many diverse cultures therefore it is important to ensure that companies invest in proper research to understand the markets. The people are not against Western products although the number of competitors in the market is very high. There are Western companies such as Apple Inc. that have already established a strong base in China and are looking to control the market. Chinese software and hardware companies are also vibrant in the market with these companies increasingly developing their strengths in the Chinese market (Logan, 2011). It is therefore becoming increasingly critical to establish a marketing mix or communication model that can engage with the customers in the Chinese market. It is important to note that the Chinese customers are not selective of products based on the company or region where it is produced but mainly they base their selections on quality (Yeshin, 2010). Therefore, given that HP continues to produce quality products it can do well in the Chinese market. The rate of economic growth in China has been projected to increase to become the largest economy in the world. Skilled labor in the country is also aplenty with companies such as Apple Inc. outsourcing their production services from China. China has all the qualities for a country that can be deemed to be one of the leading regions for companies to develop in the world.
The Chinese people have a different culture to the Western culture therefore, it is important to ensure that the company institutes a model that meets the needs of the Chinese people. The business model that is used in the Western culture needs to be differentiated if there is a chance for the company to communicate with the Chinese customers (Finn and Turnbull, 2016). The Chinese customers are in the technological bubble that is similar to other countries all over the world. The customers are driven by the quality of the products therefore, the entity needs to concentrate on improving the quality of its products rather than reducing the price as a marketing strategy (DeMooij, 2010). The company needs to develop a good research and development team that is aimed at creating a working approach or model that is critical for the company. The company needs to have a strong relationship with the Chinese customers that is developed out of a link with the larger market (Roberts, 2014). The mainstream models and aspects that is created in developing working relationships and models is critical to give the people a chance in the market. Advertisement through the mainstream media and the electronic media that is spread in the country is one of the most effective methods that the customers in the Chinese market react to (Mulhern, 2009). The other forms of promotion such as direct marketing, personal selling and sales promotion are also critical but advertisement offers the best chance to connect with the customers in the market.
The Chinese market is very competitive with software companies having identified the imminent positive changes in the Chinese market (Logan, 2014). It is therefore, becoming increasingly important to ensure that the company creates a working relationship and model that matches the needs of the individual in the Chinese market. The Chinese market is flooding with new competitors with the Western companies as well as Chinese entities all looking to capitalize on the projected market conditions (Canel et al, 2015). HPs reputation as a major brand in the international market. The company therefore, needs to invest models that are targeted at developing the best models to improve the quality of the products. The competition in the market is stiff but the market trends offer a great offering for companies to invest in the company models in the Chinese market in the long-run.
All the indicators in the Chinese market are stacked towards giving a chance to the market to develop the best marketing models in future. The Chinese economy is expected to grow expansively since the country has the required resources to ensure that they boost their economic trends in the country significantly. As companies are increasing in the market, revolutionary technological advancements are being made in software and hardware development. This has been a major tenet that can be identified as a major advantage to HP a company that generates and some of the best models in the market (Belch et al, 2014). The changes in technology are being projected to be a major factor that will lead to gaining a competitive edge over other companies in the market. HP needs to position itself strategically in the market through developing the best models and aspects that are critical in giving the entity under stiff competition in the market. The market is projected to change for the better with the position of the company in the global being perfectly established (Griffith, 2010). It is therefore critical for the entity to ensure that in the long-run it institutes innovative and creative aspect to relevant in a constantly changing technological market.
Marketing Communication Mix
There are different methods that are used as marketing strategies in a new market where customers may not ample information on the new products by the entity. HP needs to assess each of the marketing mix models and institute the best method that can be used as a promotional model to ensure that the entity creates a working relationship with customers in the Chinese market. One of the methods that has been used in the past is sales promotion (Keegan and Green, 2010). Sales promotion entails, giving discounts and gifts for buying the company products. This can be used when an entity is looking to sell most of its products in the market and create a working relationship with the customers. There are different approaches that are used by companies while looking to engage with the customers and discounts offer on products is one of the most successful methods (Ewing, 2009). The company can also use the same methods to connect and interact with the retailers and distributors in the market. Retailers and distributors need incentives to ensure that they sell a companys product in the market (Percy, 2014). Since they are well connected and have the potential to connect with customers easily they therefore offer the best approach or model that is critical in connecting and communicating with the customers.
Direct marketing where the company engages with the customers for their products is also a major approach that has been popular and used across different entities in new markets. However, in a market where there are very many competing models this may offer a major challenge. Customers may not engage properly with the products since they prefer to stick with what they believe to be the best models (Alon et al, 2013). However, if they were to engage with the customers and establish a working model in the society it offers an individual the basis and models that is critical in developing the best attributes for the entity in the long-run. Personal selling of the products is also one of the methods that is used. While a company is selling its products it may use the opportunity to reach out to its customers and engage with the people (Shimp, 2010). However, in a country that has more than 1.3 billion people it may not be the best promotional method that can be used. The method is ineffective and would require a lot of people, while also requiring the people to buy into the product from the offing.
Advertisement has been noted as one of the most widely used model that can reach out to millions if not billions of people in the world. HP brand can communicate with the people through advertising especially through mainstream media. The social media is increasingly becoming one of the most popular models that is used in reaching out to many people at once. The advertising platforms have recently changed with electronic boards on buildings and motor vehicles being some of most popular models used in the present world (Schlegelmilch, 2016). The advertising space has widened making the models and means that can be used in advertising bigger. In a population where there are more than 200 million potential customers the only method that can be used to reach out to many of these customers is through advertisement.
Advertising is the only actionable and best strategy that can be used in reaching out to customers in the country. The first mode of advertisement should be mainstream media that is the television and newspapers in major cities across the country. HP should look to invest in a proper at the best advertisement approach for instance in an international event such as the World Cup or Olympics. Launching a product that coincides with a major event rallies a lot of people behind the product since billions of people watch these events worldwide. Sponsoring a major sports brand and ensuring that the people watching can see the banners...
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