Sample Marketing Term Paper on Marketing Strategy

Marketing strategy

Introduction

Company A is an established service provider, handling staffing and business consultancy in China. The company has established office, one in Hong Kong and the other in Shanghai. Both offices enjoy autonomy in decision-making but all work towards united goal. The company is a family-run business that has been in operation for 30 years. Currently, the company has 200 employees who help in the day-to-day running of the company. There is need to have a marketing strategy in order to enable the company grow significantly and have a greater influence in China.

This paper intends to describe the most appropriate market strategy that can be used by the company through appropriate consideration of necessary factors. The factors to be considered in this case are customers segments and area of specialization. This is an important topic will provide deeper understanding of handling market strategy. Most importantly, the company will use the market strategy to enforce necessary changes in order to ensure growth and development.

Marketing strategy

            Marketing strategy is vital in ensuring the business maintain its competitive power by providing necessary direction. This strategy will express the company’s direction and objective in extending its marketing capacity (Kleinaltenkamp, n.d). There are challenges in getting into the Chinese market, which is characterized by high level of competition and great dynamism. These present a great opportunity for the company to offer consultancy pertaining establishing business in the Chinese market. The company intends to extend its services within the Chinese market, by first, establishing a strong reputation within Hong Kong, and then extending to other Cities in China. The main focus is providing consultancy services to German Small and medium-sized enterprises(SMEs), on how to venture into the Chinese market, how to gain suitable business momentum within the region, and most importantly assist the Small and medium-sized enterprises to find the right employee, and provide legal advice. The main challenge German SMEs experience when investing in the Chinese market is how to start and build necessary momentum that will assure them of success in the competitive market.

                In order to be able to build a strong marketing strategy, customer’s recognition is the first step. In this case, the company intends to engage German SMEs within the Chinese territory. As a result of good relationship between German and China, there are several German enterprises venturing the Chinese market. The main reason why the company creates major focus on the German SMEs is because currently, German is the top European inventor in the China. German and China enjoys a strong relationship based on trade between these countries. The company will materialize on these great opportunities to establish a reckonable brand in China.

            There are many business consulting firms in Hong Kong; however, the area of specialization definitely reduced the great the numbers of competitor. By creating a major focus on German SMEs, competence in the handling German culture will be required. These aspects require a mixed Chinese-German management in the company in order to be able to relate effectively with both culture.

            In order to maintain and meet a large number of customers, the company will engage in promotions that will express the quality of services offered by the company to the public. This will be effected through intensifying marketing promotion campaigns in trade fairs and holding sessions in conferences within German business network. On important occasions, the company will be engaged in giving speeches in major conferences on event related to German culture.

            The company offers consultancy services, mainly to German SMEs, on how to venture and succeed in Chinese market. There is great competition and much dynamism in the Chinese market, a fact that discourages many foreign investors. However, with reliably advice from the company, the investors will be able to establish themselves within the Chinese market. The company has already established some reasonable ground by building a great reputation for the 30 years it has been operating. Currently, the company is in the “expert status”, which signifies a great opportunity for more advances and growth.

The relationship between marketing instruments in the marketing mix

            Marketing mix is composed of a set of controllable marketing instrument that a company uses to get vital feedback from the target market. It carries all necessary tool required by a company in order to effectively influence demand for its products. Marketing mix is necessary in creating a market plan and its execution. Normally, there are four groups of variables that are evaluated in market mix, commonly referred to as four Ps. They include:

            1) Product-Involves the good/services that the company intends to offer. It entirely describes the characteristic of these good/services, their uniqueness, and why the company intends to engage in providing them. The instrument involved includes features, variety, design, quality, packaging, brand name, and services.

            2) Price– This is the cost expected from the product. The instruments involved include: credit terms, discounts, payment period, and allowance.

            3) Place– The process that makes products (goods and services) available for customers to purchase. The instruments involved include; inventory, logistics, location, transportation, channels, assortments and coverage.

            4) Promotion- This involves the process used to communicate the availability of the product in the market, its features, and advantages which attracts the customers to purchase them. Tools involved in this process include public relations, advertisement, sales promotion, and personal selling.

Evaluation of Marketing Strategy According to Various Relationships

            Different companies employ different marketing strategies in order to effectively promote or convey vital message about the product or services offered. There are several essential approach that can be used in coming up with effective marketing strategy. Markets consist of customers, who differ in one or many ways. Customers may differ in terms of customer’s perception, locations, attitude, and culture. Through market segmentation, the company is able to divide a big heterogeneous market into smaller units that can be handled more effectively with services and products that match their unique needs.

            The most appropriate approaches that can be used by the company to capture significant market is niche or concentrated marketing strategy. Concentrated marketing, which is also referred to as niche strategy, creates target on one particular market segment or audience (Kleinaltenkamp, n.d). The strategy normally focuses on small groups of people because the nature of its design appeals a specific segment.

The greatest benefit in this strategy is that it concentration on smaller units eliminates competition from competitors, who are largely involved in the wider market. Actually, small market segments may not be the specific targets from other competitors. Therefore, it is likely that in smaller groups or niche, the supplier in most cases may hold a quasi monopoly position and therefore enjoy great benefits associated with monopoly. Unlike differential market strategy where concentration is divided in order to capture the entire market, niche strategy ensure necessary concentration is given to one particular group thus increasing the intensity of coverage. Normally, there are increased challenges in ignoring the aspect of customer segmentation as employed undifferentiated market strategy.

In our case, the company intends to market its services to a particular kind of group, which is German SMEs, who want to enter the Chinese market for the first time and have no idea how to do it. This fact eliminates all other SMEs, including the ones from China. The main reason behind creating a significant focus on German SMEs is that there is ready market because of great influx of German SMEs and few consultancy firms in Hong Kong and Shanghai. Since the company has two offices, which work independently, one in Hong Kong and the other in Shanghai, it is expected that each office will focus on its own area to focus on German SMEs.

Creating such a focus will helps the company concentrate and specialize in handling one group in order to increase perfection and ensure the needs of the specific segment are thoroughly met. In order to have measurable area, it is important for the office in Hong Kong to consider the region of Hong Kong, while the office in Shanghai to consider the region of Shanghai as the main area of focus. Hong Kong and Shanghai are both famous cities, known not only in China but also globally for their great influence in the global markets. There is great numbers of companies established in these regions as a result of high the demand from the high population in the region. Considering the nature of the company, a medium sized company would comfortably handle niche strategy. 

Conclusion

            Marketing strategy plays a crucial function in development and expansion of a company. Companies have make use of different marketing strategy in order to gain wide access to the available market. However, for the family-run consultancy firm, the niche strategy will be employed. As explained; there are greatest benefit in using niche strategy, because concentration on smaller units eliminates competition from competitors, who are largely involved in the wider market. Normally, it is likely that in smaller groups or niche, the supplier in most cases may hold a quasi monopoly position and therefore enjoy great benefits associated with monopoly. Small market segments may not be the specific targets from other competitors and therefore this provides opportunity for the business to grow and expand. It is also important to consider marketing mix when employing marketing strategy in order to have a clear direction, which the company should take.

References

Kleinaltenkamp, M. (n.d). Market Segmentation. Chapter 2