In risen annually since 1970 (Cateora and Graham
In the recent times, the business environment has witnessed a number of transformations. The developments in information technology and other related technologies have played a crucial role in this advancement. In the process, the competition levels have gone up tremendously.
As competition peaks, businesses find it necessary to devise and adopt mechanisms that hold the potential of promoting the activities that the entities engage in. Entering a new market is an old phenomenon although the strategies required in entering a market may change slightly from time to time.
The first step when planning to enter a market involves identifying the target market. In this case, the People’s Republic of China is the preferred country. After identifying the target location, the business must establish the procedural requirements, operational requirements and any other concerns such as the legal and ethical aspects of setting up a business in China.
Up until 1970, the Chinese economy was small. Nevertheless, from this time, the country’s economy has been on an upward trend. Augmenting this view, the country has increased global interactions in terms of trading. Additionally, the country’s GNP has risen annually since 1970 (Cateora and Graham 46).
Further, the shift of the Chinese economy to advanced technology also supports the development idea. However, the growing economy has led to other problems hitherto un-witnessed in the country. Such problems include limited energy sources, transport and communication facilities, etc. the setbacks aside, the Chinese republic continues to be a world leader in the production and supply of rice, crude oil, coal, soybeans, tobacco, wheat, etc.
Based on the above establishment, it is important to note that China offers the best opportunity for a new business venture. This lies on the notion that the country offers ready market for the products being offered. However, corruption allegations are dominant in the country. This implies that new businesses have to deal with this concern. The best approach would entail following the right procedures in setting up the business.
When entering the market, a producer should consider these strategies. Segmenting strategies, pricing strategies, supply strategies, customer service strategies, positioning strategies, branding strategy, risk management strategy. Focus on the strategies should be useful both in setting and in operating the business.
Global Trade Associations and Dumping
The North American Free Trade Agreement (NAFTA) represents an arrangement by countries from North America to facilitate trade by eliminating tariffs. Established in 1994, the NAFTA sought to eliminate trade barriers among Mexico, Canada and the United States.
The agreement led to the removal of agricultural tariffs between the US and Mexico. In the subsequent 15 years, tariffs in other sectors were also done away with. In a separate agreement, Canada and Mexico reached consensus to allow market access for agricultural products from either side. This agreement removed most tariffs or reduced them drastically (Jain 229).
Established in 1958, the European Union (EU) is a union that seeks to foster trade among its members. Most of the decisions made by the union are negotiated amongst the members. Having developed a single market, it is evident that the EU aims at facilitating trade within the European region (Jain 229).
The World Trade Organization (WTO) is a global organization that deals with rules and regulations regarding trade among or between countries. The WTO agreements apply to countries after ratification. WTO pursues the sole goal of helping traders to conduct business (Jain 229).
The Asia-Pacific Economic Cooperation (APEC) offers a platform to twenty-one countries that seek the promotion of free trade. The countries are drawn from the Asia-Pacific region. The organization developed out of the emerging interdependence among the countries from the region (Jain 229).
Several countries have attempted forming regional unions in order to promote free trade. However, in practice it has proved difficult to attain this goal. Such factors as political influence, different monitoring systems, cultural differences and protection of domestic industry undermine the pursuit of the goal.
Dumping presents a serious concern in international trade. Dumping is possible because countries have different production capacities and capabilities. As such, some countries are able to produce more goods than others are at lower costs. This gives such countries leverage.
It is possible for the countries enjoying comparative advantage to sell at lower prices to countries that are unable to produce with the same efficiency. If this happens, then the countries receiving such products face the risk of losing out as their local industries are locked out of the market.
The 12 success traits
The product chosen is the Apple smart phone. The first success tip lies on product uniqueness. The Apple smart phone is unique in terms of its features. The phone has mass appeal although its cost is prohibitive.
Although concerns over the cost are genuine, it should be observed that the product is meant for the up-market sections of the society. Consequently, the cost is not a concern. The service delivery of the product is unquestionable. This view is held in reference to the idea that the phone is delivered based on the agreement between the buyers and the producer.
Equally noticeable, the phone fulfils the dreams of those aspiring to use the state of the art products. The phone solves personal browsing problems and its effective positioning is outstanding. The phone’s most striking feature lies on its potential to offer instant gratification. The phone is highly perceived in regards to its pricing and quality. The phone elicits emotions on customers prior to and after concluding the purchase deal. The packaging of the phone is perhaps its strongest aspect based on its attractiveness (Palfrey 20-25).
The customers who have used the phone highly recommend it, an aspect that underscores the appeal the product enjoys. Testimonials aside, top celebrities have endorsed the product across the globe. On purchase, consumers are offered a range of support products to make the use of the phone a worthy experience. The accompanying products include extra batteries, memory cards, headsets, etc.
Analysis of commercials
The product being advertised is the Lexus car. The commercial lasts roughly one minute. The uniqueness of the advertisement is based on the idea of portraying the car as the perfect vehicle. This is underscored by the slogan that the car dealer pursues perfection.
The performance of unusual stunts by James Sloyan also brings something new into the advertisement. Coming during super times, the advertisement attempts to reach its customers. Based on the idea that during the time most people are at home watching news, it is suggested that the advertisement reaches its target market relatively well.
Lexus employs both television and internet advertising. Since the inception of the Lexus, it has relied on marquee advertisements. As early as 1989, television advertisements narrated by actor James Sloyan showed vehicles performing unusual stunts. During the first ten years, the ads consisted of disjunctive verbal descriptions like “pursuit”, “perfection” and “relentless”.
In the same ads, the company takes the opportunity to assert superiority in “idling, interior quiet, precision and comfort”. The advertising was aims at countering competition from German carmakers (Anderson and Vincze 29).
Based on my current social status, I would say they were not selling to me. However, I was impressed by the presentation and if I climb up the status ladder, I would definitely consider buying the car. On a scale of 5, I would rate the commercial at 4. This is based on the uniqueness the marketers use and the message they are able to send to the target market. Additionally, the timing aspect earns the advertisers reasonably high marks.
Differences between advertising in the USA and other countries
Advertising is generally similar across countries. However, minor differences are visible. One aspect that differentiates the advertising field revolves around media availability, local preferences, cultural issues and government restrictions. Regarding media openness, it is noticeable that the Chinese government puts some restrictions on the media.
The restrictions imposed on Google in the recent past are a good example. In contrast, in the US, the media enjoys unconstrained freedom. In addition, the media is not available in all parts of China. The large sections from the rural areas of china do not access media in the same way residents of the United States do. It is also noticeable that cultural differences influence advertisement.
While China is predominantly occupied by people who share a similar culture, the United States remain predominantly cosmopolitan in nature. This implies that advertising differs in the two countries as in the US advertising must recognize the different cultures while in China, the focus is to appeal to a single culture.
Primarily, the Chinese media is made up of magazines, newspapers, radio and television. However, in the recent times, the emergence of the internet has brought a new dimension to the media as it continues to gain prominence. Access to the media has remained limited since the State controlled the communication channels.
However, access has improved especially after the introduction of the economic reforms. Nevertheless, State run media agencies such as People’s Daily, Xinhua and CCTV continue to hold considerable market share in the country (Shirk 1-23). This contrasts the case in the US where the government does not have control of the media.
Anderson, Holmes and Vincze, John. Strategic Marketing Management: Meeting the Global Marketing Challenge. Pennsylvania State University: Houghton Mifflin, 2009.
Cateora, Peter and Graham, John. International Marketing. New York: McGraw-Hill Companies, 2006.
Jain, TR et al. International Trade and Public Finance. New Delhi: FK Publications, 2010.
Palfrey, John. Intellectual Property Strategy. Massachusetts, MIT Press, 2011.
Shirk, Susan. Changing media, changing China. London: Oxford University Press, 2011.