ASSIGNMENT 1: MARKET ENTRY STRATEGY
Introduction
The tentacles of the information age have spread in all sectors of business. It is reported that there has been more information in circulation in the last 30 years than in any previous periods before. A lot can be attributed to this dynamism but the majority of the credit will be given to the advancement in Information Technology and Information Systems especially the development of the Internet over recent years (2003).
The use of information technology has many benefits for an organization. According to (1995), IT is the general term that involves all forms of technology utilized to create, capture, manipulate, communicate, exchange, present and use information in its diverse forms (e.g. business data, voice conversations, still images, motion pictures, multimedia presentations). Since the technology has been invading man’s working place, the product that has been chosen to go international market is the office automation software. Primarily, the main goal of this paper is to marketing entry strategy for the office software product. The report will include the analysis of the environmental factors that may affect the product entry. Herein, the chosen countries are China, Russia and Mexico. These countries have been chosen because it is believed that the three countries are open in using technologically advance equipment in their workplace. The discussion will also include the assessment of the eight Os and will also provide a marketing mix strategy. Further, the environment will also be analysed using PEST Analysis, which stands for political or legal, economical, socio-cultural and technological aspects.
Executive Summary
The main goal of this report is to analyse the environment where the new office automation software will be marketed. The product is chosen to be marketed in three countries (China, Russia and Mexico). Analysis shows that the main problem of the product is to in terms of making the target market know the existence of the product in the country and the competition of the current software products available in the market.
In order to solve such complexities, the solution is to implement strategic marketing approach in terms of advertisement and promotion to make the target market become aware of the existence of the product in the marketplace. In addition, strategic market planning can also be attributed as a better solution to ensure that the product will be introduced effectively. The only problem that is unsolved is to find a company that will commit to the distribution of the product. With this, it is recommended that the company must be able to use a more effective market planning and strategy which will enhance the market value of the product.
Screen 1 (Occupants, Objects, Occasions, and Objectives)
In entering an international market, one of the most important factors to consider is the customers or the target market and their behaviour. In order to determine the behaviour of the target market, the marketer should be able to screen the target market and determine their characteristics using the eight Os (2004). The eight Os are composed of occupants, objects, occasions, objectives, outlets, organizations, operations and opposition. In this first screening or analysis the first four of the eight Os will be given emphasis. These include occupants, objects, occasions, objectives.
Occupants
Occupants refer to the target of the marketing effort. Herein, the marketer must be able to identify which customers to approach and also define them along numerous dimensions. The dimensions include demographics, geography, psychographics, or products related variables. In order to make the office automation software marketable, the company must be able to determine first its target market. In this manner, the company used the principles to group or to determine the target market for the product. Demographics include profiles of the consumers and these profiles would determine the behavior of the consumers.
The marketer for this product (office automation software) will make its focus on its target market in a different level of recognition. The total markets (consumers or clients) will be divided into smaller, comparatively homogenous groups. Basically, its goal is to group its customers with similar or analogous characteristics, behavior and needs. The main target is to offer its office automation software to its target market demanding the said products and to offer quality computer system and tools to the customers from household to their office needs and to give proper marketing strategies for each consumer.
Demographics
Demographics are used in order to statistically analyze the total market, subdividing the clients according to their ages, gender, and income distribution most especially, dividing them into office customers. Age will be from 18 years and above, either male or female who are computer literate. Office customers will be provided with different software and packages both affordable and quality products.
Psychographics
Psychographics includes social class, lifestyle, and personality variables ( 2000). The end result of using these variables is a psychological profile of each market segment. Issues also examined the customers’ loyalties, habits and self-concept. Social class describes how individuals want their office automation software through their comfort, what they consider important about their immediate surroundings, their opinions on various issues, and their interests.
Psychographics can be related to customers or target market for the office automation software. Since there is much office automation software available in the marker, the product to be launched is concentrating on how the customers will enjoy the products and how their target market will be satisfied of the services that it will offer. The target market will heavily fall for the people in the workplace, may it be from public and private organisations, which wants software that will suit their office needs.
Consumer Behaviors
It can be argued that consumers all over the world vary and that these differences may lead to different consumer behavior. Since the consumer behavior is being bounded by the culture and traditional values of nations the differences of consumer behavior are vastly increasing. Consumer behavior has been defined as the “acquisition, consumption and disposition of products, services, time and the concepts by decision making units” (1998).
The purchasing behavior of the consumers will depend on the marketing strategies that will be used by the in marketing the office automation software in promoting and introducing the product especially to the countries where it will be launched.
Because of the current trends for technologically advanced workplace, more and more organisations are open for changing their office into a more electronically based office. The need for office automation software has been the requirements of different organisations in these three countries. Hence, the product will be assured that they can easily penetrate and meet the demands of customers in China, Russia and Mexico.
The consumers in Russia, Mexico and China are known to have a great interest in all kinds of standard applications including the internet, web content management software and solutions, development tools, storage management software, development tools, Intra-Extranet software, and others.
Geographical Consideration
The international markets where the office automation software product will enter include China, Russia and Mexico. These three countries are considered to be a good place for launching this new product.
Objects
Objects referred to what is being bought in the current situation to satisfy a particular need like, services, ideas, physical, places, organisations and persons.
Currently, the domestic Russian software is still considered as young and consists of thousands of firms which are experts in a broad range of processes and activities like translation, development and localization, distribution, production and technical support. The local software, houses, application services and system integrators provides only works for international companies.
China’s packaged software market reached US,650.5 million in 2004 and is predicted to have steady growth in the following years (2005).
(2005) explained that the packaged software market in China includes three main primary markets, which are: applications, application development and deployment (AD&D) software, and system infrastructure software. It can be said that the Russian software industry can be identified through their unique activities though most of the distributors focuses more in complex solutions for customers. The software companies in Russia usually provide office information systems and other IS like end-user analysis, project management, system integration, training, network implementation, and IS design and customer support.
Nowadays, the most famous software applications which are currently available in the Russian market are the Customer Resource Management Systems (CRM, archiving systems and data management. The growing number of consumers in these types of software products are the result of the favorable economic condition and high demand both private and public sectors such as oil and gas, finance, telecommunications and metallurgy.
In Mexico, one of the current software products which are dominating the Mexican market is the Altitude Software. Altitude Software provide services in leading companies in Mexico like FEMSA or Coca Cola, Sears, Palacio de Hierro for retail and Sitel outsourcing. In line with this, the Mexican market is also applying CRM strategy through the software. The software products in the Mexican market are of increasing interest to customer-centric organization.
Occasions
Occasions referred to the time when the members of the target economy purchase a certain product or service, in this case office automation software. In this manner, the product consumption must be tied to a specific period of time; this may be the time for festival, summer season, cycles, Olympics, weddings and others. Since the service that will be provided is office automation software, the time that it can be purchased may be in every time of the year since companies may avail the office automation software when they decided to have software that will meet their information system needs within their workplace.
Objectives
Objective described the motivations behind the purchase of the service offered or adoption of the economized concept which include national origin of the product, company’s expertise, brand name recognition and company’s solutions to conflicts and tastes. The service or product that is offered in this case is the Office automation software.
Herein, the product will be demanded by the consumers because of the expertise of the company expertise, i.e. the ability of the management to use an effective marketing approach. Furthermore, the office automation software will be demanded because of the strong brand name that it will establish the market both in domestic and international environment. It can also be said that the motivation behind the possible purchase of the office automation software because of its potentials to give solutions to some office problems regarding handling and managing important data and information.
Screen 2 (Outlets, Organization, Operations and Opposition)
Outlets
This is where the target market expects to be able to obtain or acquire certain product or to be exposed to messages about the products such as the entities or locations. In this manner, the product can be obtained in three different nations (China, Russia and Mexico). In order to make the software product available in these foreign markets, the company which will produce the office automation software will try to have a collaborative venture to one of the leading companies related to software industry in each international market.
Organization
This aspect describes how the purchasing or acquiring of a new idea or product takes place. Organization may change from small to large groups or to quite formal committees. In this particular product the acquiring or buying of a new product may take place in a software industry which can be found in these three countries. Such software industry is connected with the company which is producing the product.
Operations
This factor represents the behaviour of the industry which is buying the products or services. More and more, industrial organization are focusing their purchases to fewer suppliers and making longer term commitment. As mentioned above, each country currently has their own supplier of software for office needs. This software industry can be a target of the company to supply their new and innovative office automation software. For example, it may have a commitment with Altitude Software in Mexico, and to other software industry in China and Russia.
Opposition
It refers to the competition to be encountered in the international market place. The context of competition will vary from direct service or products, type competition to products which provide the same needs. Determining the opposition is an important factor to consider so that the company or the marketers of the product or service offered will be able to know their competitors and the possible strategy that they may use to outgrow such competitors and know the needs of the target market. There have been more than 2000 Software companies in the international economic place. These companies have spent three years to increase their levels. Thus, this means that that the product or service will enter the international marketplace as a beginning industry considering that there are many competitors within the market place.
Screen 3 Political and Legal Factors
Firstly the political environment concerns the role of the government and its affects in an organisation it also includes the extent to
which the government intervenes in the economy. The political condition in China, Russia and Mexico can be considered as an open market. In this manner, the governments of these three international markets are willing to accept new investors or company that will operate within their region. In addition, the government of China, Russia and Mexico also provides their own version of corporate policies which should be followed by different organisation. In this manner, the pressure is on the new product in terms of ensuring that they always have legal actions in their business operations.
Screen 4 Technological and Economic Factors
The China, Russia and Mexican market are the target of the new office automation software. In this manner, it is important that the economy of these countries must be analysed. China is considered to have the strongest economic status among these three countries. In 2005, it has been regarded to be the 4th largest in terms of exchange rates. In recent years, Russia has been able to recover from crisis because of the growing internal consumer demand. Hence, the country has been noted to be the 9th largest economy throughout the world and 5th largest in Europe. On the other hand, Mexico has been ranked as the 12th in the world in terms of GDP and has the fourth per capita income in Latin America. Hence it can be said that there is a bigger opportunity for a new company to become successful in operating in China, Russia and Mexico. The continuously growing market economy of these countries has been a good indicator that the new company will be known in the marketplace.
In terms of technological aspect, the three countries have been able to utilise advance technology. This includes their acceptance of information technology especially for business operations and or organisational needs. This aspect will give a new product like office automation software to grow in the market and make use of state of the art technological facilities to enhance the quality of the service given by both public and private corporations.
Screen 5: Societal and Cultural Factors
Social and Cultural aspects are also important to consider when deciding to enter a foreign market. Likewise, Culture is an important factor in understanding an industry, because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization. (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture.
It can be considered that in terms of social context China gives more attention to social security. In addition, China are also considering new trades and partnerships to different company which can offer them better quality products or services. In terms of culture, China is always adhering to the concept of ‘GUAN XI’. Like China, Russia has also a strong culture and society. Russians’ social context is considered to be impulsive when it comes to consuming products or services. In addition, the society is open to investors who will provide technologically advances products and services. In Mexico, it can be noted that the social and cultural condition are diverse. This can be a big factor for this office automation software to become marketable in the country.
Market Entry Recommendations and Justification
In involving in a marketing entry into a foreign, it is important the marketer of the new product (office automation software) must be able to conduct a market research which will investigate the potentiality of the acceptance of the products and services they are offering. Investigation should include the evaluation of the host countries (China, Russia and Mexico) that the company will enter. It is recommended that the marketer must conduct a comprehensive market evaluation and must determine the best market entry strategy to be used to ensure that they will meet the organisational goal of business expansion and to be able to stay in the competition for software industry. ]
In addition, it is also important that the marketer must try to investigate the possible risks, problems and issues that the company may face as it enters the Chinese, Russian and Mexican. Above all, the company should develop an effective advertising and promotion campaign to make the customers be aware of the products and services offered and how these products meet the office and management needs of the customers from these countries.
Marketing Mix Strategies
Part of a marketing strategy is the utilization of the marketing mix. The marketing mix principles is controllable variable that is why it can be adjusted on a frequent basis to meet the changing needs of the target market and other dynamics of marketing environment ( 2004). In relation to marketing plan, marketing mix includes both short term and long term strategies makes for a more profitable marketing mix. Long term strategies build brand/company awareness and give sales revenue a permanent, gradual boost. Short term strategies create a temporary, immediate revenue boost by giving buyers an incentive to purchase. By implementing both long and short term strategies, you can attend to immediate sales goals while building your business reputation and goodwill (2004).
Product
The main product of the WiserSoft Company is the WiserSoft Office Automation. As part of the WiserSoft Office Automation, this technology gives managers the ability to quickly define a company’s sales processes and standardize the cycle. Real-time sales pipelines give managers unprecedented levels of control and ability to manage the process. Rollup forecasting lets executives keep an eye on the big picture. Moreover WiserSoft in its Group Collaboration Software had introduced the concept of ‘involved parties’ in which the office intended to interact with. Collaboration software enables communication between all the office’s involved parties, but where suitable, it also allows Involved Parties to communicate amongst them through the Collaboration Suite that the software has been provided.
When an office had started it runs its business through the email inbox. The employee may spend a great deal of their day adjudicating and relaying messages. However, when this new technology had arrived it provides many features that helped the flow of the office functions. WiserSoft can automate and remove the workload and carry out tasks without ambiguity avoiding misunderstandings. The human resource management creates large files containing all the documents of the office that are often too big to exchange via email. Time and money is lost while couriers carry CD’s between offices, manufacturers, clients and others. Through the WiseFolders which are directories on the WiserSoft server which is Internet enabled allowing personnel and employees check in and out large files effortlessly.
Moreover, WiserSoft workflow identifies files coming and going out or being reviewed and updated and notifies designated parties via email of the changes occurring. On-line or off-line it does not matter in the WiseFolders in the WiserSoft, even if you need the latest documents, presentations and reports for your business this technology can provide all the things that you need. The uses of workflow with a WiseFolders alert the key people when a document is updated or added. WiseFolders security is driven by the unique role and company based security model. WiserSoft Forms allows the office to recreate different paper forms in an electronic format for any purpose such as, surveys, assessments, quality control or reference forms.
Pricing
One of the advantages of the company is when it comes to its pricing tactic. In order to be known into the market place and as a new entrant, the company will provide its target market with an affordable cost while providing them a high quality products and services. The company will be given the customer and client a price that is lesser than its competitors so that the consumer will be enhanced to buy and patronise the WiserSoft Office Automation Software.
Placement/Distribution
To be known in the market place, the product will be distributed directly to its clients and consumers. And to be known internationally, one of the strategies that the product will utilise is going on a joint venture with distinguished distributor of Software, providing them with great offers, so as to market the product of the WiserSoft Company. The company will also find a Software Industry Alliance in the China, Mexico and Russia to be known globally.
Promotion/Communication
To promote the company and its product, the company will use video advertisements, print advertisements and the concept of e-marketing. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or the consumers in the working place.
Moreover, since the trend in the market place today is the usage of e-marketing, the company will provide a website that any client can access. The use of the Internet is changing high-tech marketing overnight while different industries have been trying to use it as part of their marketing strategy. It does not only reconfigured the way different firms do business and the way the consumers buy goods and services but it also become instrumental in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel ( 1999). E-marketing is a powerful tool used by different business organizations around the world. It is defined as the process of achieving marketing objectives through the use of electronic communications technology.
ASSIGNMENT 2: CASE STUDY ANALYSIS
Introduction
The case was about the problems encountered by Parker Pen as it implements its globalization marketing strategy. The following are the perceived problems and issues that Parker Pen has encountered during their implementation of the globalization strategy.
1. Management Complexities
One of the issues that have been pointed out to Parker Pen is their inability to establish a good management and marketing strategy that would further enhance the corporation’s position on this kind of industry. In addition, the company also lacks the ability to strategically plan their marketing strategy Good management strategy will ensure company’s growth if implemented properly. Strategic management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables any organisation to attain its objectives,
2. Lack of having Internal marketing
One of the perceived problems that can be attached in the situation of Parker Pen in 1985 is the lack of the management to have an internal marketing. Internal marketing is a marketing approach within the company, aimed
at visualizing and supporting ideas, projects and assessments that are
useful to the company. The internal marketing creates an exchange
system based on communications between the company and its employees
to adapt an organisational environment and international relations to
the operators’ needs as well as an active participation to achieve the
company’s targets. In this manner, the company’s goal of having an industry a product which will be marketable in the global world are not achieved because the management has not been able to effectively coordinate their objective in the internal environment of the company.
Because of this, there are certain issues and conflicts which are not easily solve resulting to a greater conflict which affects the implementation of the globalization strategy.
Alternative Solutions
With the perceived problems above, the following can be considered as an alternative solution for such problems. The alternative solutions will include, having a strategic decision making, implementation of strategic management and having an effective internal marketing.
A. Strategic Decision Making
The company must be able to have strategic decision making for the future to continuously sustain the strength of the company. Good decision making can be attributed as one of the vital factors that will help the business to achieve its core mission and objective. This alternative is helpful in a way that it can make the company more competitive and survive in the marketing environment.
B. Implementation of Strategic Management
Strategic management is guiding an organisation relative to challenges and opportunities appearing in the contingent environment. This environment is composed of those external elements that most directly affect organisational goal achievement and new goal development. Thus, organisation system design and management should complement strategic actions taken for productive subsystems, as well as those providing output delivery and other support functions for the organisation. To the extent possible, the organisation bases its actions on strategic planning that, rather than a one-time effort, is an ongoing process of adaptation of original conceptions of mission, goals, structure, roles, and so forth relative to environmental dynamics (1992).
C. Imposing Strategic Internal Marketing
Traditionally, marketing has been utilised by the private sector in decisively increasing the capabilities of an organization. Marketing can be considered as one of the most important element underpinning successful business creation ( 1994). Perhaps because of its complex applications, marketing has been defined in a variety of ways (1988). The marketing concept was first promulgated in the late 1950’s (1990). The importance of marketing concept incorporates oft-repeated elements such as: customer orientation; integrated marketing efforts; and resultant profitability (1990). Having a strategic internal marketing may enable the Parker Pen to solve different issues and conflicts which have been one of the causes for the failure of the globalization strategy.
Recommendation and Justification
In order to solve the problems which have been faced by Parker Pen in 1984, the recommended solution would be the implementation of strategic management. Strategic management is the process of specifying an organisation’s objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It provides overall direction to the whole enterprise ( 1999). It can be “viewed as a set of theories, frameworks designed to explain the factors underlying the performance of organisations and to assist managers in thinking, planning and acting strategically” (2002).
Historically, the principal benefit of strategic management has been to help organisation formulate better strategies through the uses of a more systematic, logical and rational approach to strategic choice ( 2003). One of the potential benefits of strategic management is it make sure that the organisation only follows one direction or path and that is towards the achievement of its business mission, objectives and success. Through the used of strategic planning as part of the strategic management concept, the company will be able to determine the best approach to be used in order to efficiently attain the said goals. In addition, strategic management is also beneficial in ensuring not only the success of an organisation but also its survival by adapting the whole organisation to changes in its environment and making sure that the organisation remains competitive (2002).
One of the advantages of strategic management is it enables a firm to proficiently identify how a certain organisation should deploy its resources in the environment and adapts the organisation to satisfy the long-term objectives of the firm. It is important to note that strategic management deals with several time spans. The organisation needs to be more than just competitive here-and-now. The competition for industry leadership is just as crucial to firms as is the competition for developing the right competencies in the right time. Thus, strategic management is also about integrating time horizons and activities related to all three kinds of competition. This often means finding those issues that should be kept invariant for the time being and adjusting other activities and issues accordingly ( 2000).
Implementation
In order to solve the problems faced by the Parker Pen and in order to make their product be competitive in the global market, the company should be able to revise their marketing plan, into a more integrated and complete marketing plan. Traditionally, marketing plan has been utilised by the private sector in decisively increasing the capabilities of an organisation. Marketing can be considered as one of the most important element underpinning successful business creation (1994). The importance of marketing plan aligned with the business strategy helps the business to initiate their strategies into a more progressive and competitive manner.
Strategy implementation has been heralded as the key to corporate strategic success. The Parker Pen may implement the said changes after the planning stage has been cleared and discussed. In order to apply the Strategic management concept to the company, the management of the Parker Pen must be able to accept the whole concept of the improvement, which means that all the people within the organization must agree that there is a need for a total transformation especially for the quality of products that the industry will be offered. Furthermore, the management should be willing to participate to all the improvement, value each and every ones opinion in order to achieve total quality management and provide a total quality operations and services to satisfy their customers. Managers and experts disagree about how to effectively implement Strategic Management to their organizations.
The scope of strategic management is inherently greater than that of operational management. With long time spans and complex organisational-environmental links, it is often impossible to determine the causes of a particular success or failure. Hence, it is difficult, if not impossible, to learn or foresee whether a certain strategic decision is good or bad for the firm. Furthermore, strategic management is concerned with non-routine issues and innovation at the organisational level; thus, strategic management is complex and ambiguous. As already mentioned, complex and ambiguous problems requires different approaches than simple and straightforward ones. In other words, managers who are used to managing day-to-day operations and solving the problems there may find it a challenge to be part of strategic management.
In the real world of strategic management, implementation begins at the moment it is decided to undertake a strategic analysis; and activities such as analysis, choice, and implementation are concurrent and feed off each other.
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