Impact of economic and political factors on marketing in Brics nation: A case of Toyota
economic political代写 With markets in developed markets almost saturated, it is a strategic dream of every company to expand ···
Overviewe conomic political代写
With markets in developed markets almost saturated, it is a strategic dream of every company to expand its antennas into the international markets, and especially the developing countries. The Brics nations provide one of the most lucrative of the developing nation markets. Most of the companies that have successfully established themselves into these markets are a living exemplar of business success. Brics markets are heavily diversified and unequal as well, with a middle class that fuels a consumerism which makes them profitable and promising.
Nevertheless, penetrating these markets calls for an aggressive marketing strategy.economic political代写
An international marketing venture like any other business endeavor can go wrong. Developing such a strategy is heavily reliant on understanding the economic and political realities that face the company. (Schlegel, 2016) These factors can either be internal or external. External factors are those that the company cannot control while internal factors can be controlled and exude at the company’s level.
To better exemplify the influence of these factors on marketing, the case study of Toyota, an automobile MNCs headquartered in Japan is invaluable. Toyota has successfully established itself as an affordable and quality motor vehicle manufacturer through overcoming marketing challenges posed by these factors. This paper hence seeks to illustrate how economic and political factors can impact on marketing and how to overcome these challenges for a profitable international business endeavor.
Economic factors and their impact economic political代写
While considering the marketing options that a company should pursue, marketers should have an in-depth knowledge of the target market. This includes the economic condition, system, and policies of the nations as well as its own economic constraints. Economic factors such as income distribution are important mainly because they not only influence the purchasing behavior but also affect other aspects such as product differentiation, branding, and pricing.
Toyota succeeded as an automobile brand, due to tailor-making its motor vehicle to match the economic potentials of the developing markets. Reflecting on aspects such as main economic activities, which can either, be industrial or subsistence is also imperative as it impacts on products choices. Essentially, the nature of the economy influences how you approach consumers and is affected by international treaties, inflation, taxation or customs, and prosperity indexes.
Effect on marketing strategy economic political代写
Developing nations comprises of an emerging middle class. The main difference between a developing and developed nation is that the latter has a large share of a middle class that fuels a high demand for luxury products and services. In the developing nations, however, this class cannot afford expensive products and services due to economic constraints. They are essentially price sensitive and can mainly afford to spend on affordable but quality products. Pricing is affected a great deal by several economic factors including taxation and rate of inflation which would force a company to price their products in stable currencies. Taxation is also very important as it impacts the margins the company can enjoy in a particular market.
In the case of Toyota, the middle class in emerging nations was targeted with cheap and affordable motor cars especially in China. (Fitzsimmons, 2004) This was a successful strategy because it took into consideration the economic abilities of the developing nations. Today, Toyota price leadership model in BRICS nations have highly fuelled the demand for the Toyota cars.
Product selection and branding economic political代写
The product and service that a company chooses to bring to the market .Is essentially a sacrosanct component of the international marketing strategy. A market analyst must always conduct an in-depth analysis of the type of products to sell and how to brand the product. In product selection, aspects such as income, economic activities as well as policies play an important role. Economic activities influence the brand, especially in the case of Toyota, which sells more pickups and probox models in developing nations such as South Africa because of their cargo capacity.
Countries often influence the type of products that they allow into their markets through taxation regimes. A country may choose not to allow a particular standard of a product. For example in South Africa, the country does not allow vehicles that have a high environmental pollution index. This impacted on Toyota’s product branding and selection aspects such as fuel, engine quality, and size of the vehicle.
Product quality economic political代写
Ensuring standardization of quality is a tough and agonizing choice for marketers. This is because quality impacts on pricing and pricing is very sensitive, as an issue in developing countries. Marketers are often faced with the risk of adulterating the quality standards, such as durability and class, to face off with existing economic reality. A company that prides itself as a haven for quality hence needs to redefine what will constitute the standards for a particular market. Failure to establish quality guidelines that are acceptable to the markets may lead to numerous unfavorable outcomes. In the case of Toyota, the company had to invest in a particular set of standards and best practices across its assembly line and manufacturing plants across the countries it operates.
Advertising strategy economic political代写
The nature of the BRICS economies heavily influences the advertising and promotion strategy. This is especially when it regards the medium as well as the promotional message. Income and nature of economic activities are related to the medium of marketing. because they influence the choice of mass communication mediums in the target market. In addition, they also determine the choice of marketing message, which should resonate with consumers.
While for example, everybody owns a TV in the USA, the same is not true in South Africa. In china Toyota has successfully used flyers to advertise its models. (Amasaka, 2009) Most of the consumers are subsistence farmers and are highly likely to use the services of radio stations; in this case, the use of radio as the preferred advertising medium is the best option.
Political factors and effect on marketing strategy economic political代写
Political factors are exceptionally part of the external environment that at large is often beyond a company’s control. Societies and nations have different ways of determining; who gets what, when and how, which is essentially the popular definition of politics. (Lasswel, 1963) Political factors are largely elusive as well because of the dynamic nature of body politics which often reflects instability, political ideology, international agreements, and security. (Schlegel, 2016) Political ideology is characterized by ideas, and ideas and marketing are inseparable.
Marketing thrives in a positive and enabling environment, a quality that is heavily indebted to the ideology of the day; it can either be liberalized-democratic or totalitarian, controlled political system. Stability of leadership and political structures is also inherently important for marketers as it ensures the stability of the marketing strategy as well. The lack of security can also spell doom for marketers because it impacts on the ability of the product .To reach the market hence affecting several marketing aspects as well. Essentially, political factors provide incentives for FDI or act as barriers and hence should be of concerns to marketers.
Effect on marketing strategy economic political代写
Market department staffing options
One of the essential politics that constitute developing nations has to do with jobs for its populations. Companies seeking to penetrate these markets should take notes of existing legislation .That bars companies from barring expatriates in specific departments. There is no company that can convince the political system of the day that, marketers and salesmen ought to be brought from abroad. Toyota, for example, ensured that it overcome this challenge by training and staffing its marketing and sales department in India and Russia with nationals of those countries. It is also in the best interest of the companies to involve locals as they bring on board locational specific market knowledge. More also, diversity is a very important aspect for any country.
Marketing department offices economic political代写
Marketers are often faced with the tough option of selecting the perfect location for their branches. This is imperative because it impacts profitability, pricing, and costs of putting up such an office as well. Establishing offices in countries that exudes insecurity. political instability.And erratic political ideology would never be in the best interest of a marketing department as well as the company. For example, for its market in sub-Saharan Africa and South Africa included. Toyota office location preference is in Nairobi, which has largely been stable and is strategically located. Faced with a better option among the BRICS nations. China would be preferable than North Korea, a non-BRICS nation, as the strategic marketing and administrative headquarter for Toyota.
Recommendatione conomic political代写
Economic and political factors should form the predictive . and intellectual basis of developing. Implementing as well as evaluating a company’s marketing strategy. Because strategy is a set of activities that a company has regarding its growth (Jannesson, 2013).It is important to back up this with extensive research .In order to comprehend the various facets of motivations in these countries as people are motivated differently. (Maslow, 1943)
If a company cannot afford to conduct geopolitical surveys. It should ensure that it purchase it from the various international data collection companies. Especially those that have harnessed the power of social media. Investment in the survey is essential . Because it can help a company anticipates political events that can impact on its marketing strategy. As well as economic factors that countries are likely to pursue at the face of economic realities.
References economic political代写
Amasaka, K. (2009). “The effectiveness of flyer advertising employing TMS: key to scientific automobile sales innovation at Toy. China-USA business review, Vol.8 Issue 3,p1-12.12p.
Fitzsimmons, E. (. (2004). ” chinese buyer sees no benefit in greener models”. Asia’s Media & Marketing Newspaper,, p16-16 1/3 p.
Jannesson, E. (2013). Strategy. Berlin: springer.
Lasswel, H. (1963). Future of political science. New York: Atherton Press.
Maslow, A. (1943). A Theory of Human Motivation. Psychological Review, Vol. 50 #4, pp. 370–396.
Schlegel, A. (2016). Truly Global – The Theory and Practice of Bringing Your Company to International Markets. Victoria BC, Canada: Friesen Press.