 |
 |
|
The Asian marketing scene continues to move at lightning speed. The importance of global brands, segmentation by ethic group, religion, and class, the continuing critical mass of the youth market in places like China and the grey market in Japan are key trends any global marketer must keep up with. This is not the place to revisit the classic marketing mistakes in Asia, other than re-stating the critical importance of testing markets, both consumer and industrial, and not to assume similarities in differing markets, no matter how close in nature they may seem. Despite continued concerns that the causes of the 1997 crisis have not been fully addressed, to many Asian consumers at least the bad days of the last 3 years are receding from memory. Classic indicators of recovery and healthy economies including new car sales, and advertising sales are growing substantively in many countries, including those worst hit by the Asian crisis. The crisis, in one way, proved that even a major economic crisis could not put a major debt in the positive perceptions in some of the world's fastest growing and now increasingly wealthy middle classes. Yet marketers have to tread warily. Many international and local companies acted as if the growth of the 80's and early 90's was virtually unstoppable - that you could make as many mistakes as you wanted and still end up with a buck. That perception accounted for the bubble economies - and they eventually went burst. The excellent Marketing Intelligence and Planning journal, from which these feature articles have been extracted focuses on scientific approaches to examining and more importantly planning marketing in international markets. As these articles demonstrate, a more intelligent approach to marketing in a region will return handsome dividends. See also the related links on market research, focus groups in Asia and other resources at the end of this article.
Some excellent articles and case studies in this weeks selection focus on China, Hong Kong, Vietnam and Indonesia and Japan with others on international marketing research that has general import.
Girrrl power and boyyy nature: the past, present, and paradisal future of consumer gender identity The new, Spice Girl-less millennium, "offers an opportunity to wipe the slate clean, to abandon concepts, models and formulations once thought liberatory now considered incarceratory; to start afresh on the other side of the year 2000". Foremost among the concepts to be updated is gender identity. In a postmodern society, traditional notions of femininity and masculinity come across as antiquated and illusory. The consumption ethic has deconstructed the historical male-female mind-body producer-consumer dichotomy and made identity construction a consuming pastime. It has also turned gender into a pastiche of possibilities. Yet in the utopian cyber future that awaits us, what will become of gender identity? In the ethereality of the Internet, where existence is ephemeral, is gender identity a meaningful and necessary concept? This paper reviews the historical (modern) significance of gender identity to marketing, explores the postmodern consumer condition, and prophesies a paradisal vision of gender identity in the consumer society to come.
Keywords: Advertising, Consumer behaviour, Gender, Post-modernism
Distraction, destruction, deliverance: the presence of mindscape in marketing's new millennium Marketing-driven consumer culture is often indicted in the degradation of the ecosphere. Futurists envision an ecological crisis in the new millennium. Marketing and consumer research can be enlisted in the aversion of this crisis. Political and philosophical regimes of environmental reclamation and redemption must be mobilized by conversion experiences in the individual's soul. In this paper, I propose that marketers instigate millenarian activities to trigger a revitalization movement in the service of ecotheology. Such a provocative enterprise is well suited to the discipline's posture of eminent domain at century's end. I offer some suggestions for the shape that such a revitalization might take.
Keywords: Ethics, Futurology, Consumerism, Ecology, Education, Post-modernism
The hair of the dog that bit you: successful market strategies in post-crisis South-East Asia In the wake of post-crisis South-East Asia's declining growth and declining per capita income, local companies are restructuring their operations and re-evaluating their strategies along with multinational companies (MNCs). This article explores the winning market-expansion strategies of two companies in South-East Asia's changed business environments - the MNC, Unilever in Indonesia; and the local company, Asia Commercial Bank (ACB) in Vietnam. The first section identifies how Asian post-crisis business environments have changed. The next section explores the back-to-basics market strategy followed by the foreign MNC, Unilever. The ensuing section sketches the deliberate strategy of normal operations and transparency followed by the local ACB in Vietnam. Based on these case studies, the final section makes some recommendations for MNCs and local companies considering market-expansion in post-crisis Asia.
Keywords: Multinationals, Local economy, Marketing strategy, Market entry, South-East Asia
Marketing and company performance of Chinese small firms in Hong Kong This paper reports the mail survey results of the marketing practices of 158 Chinese small firms in Hong Kong. The findings suggest that broad small firm marketing principles, though specifically generated from the Western countries, may not be fully suitable for some specific socio-cultural contexts, for example Chinese society in Hong Kong. Thus, care should be taken before making generalizations about marketing in Western situations and in assuming that marketing tools and techniques are equally applicable across all places. Socio-cultural influences should be considered when attempting to understand marketing practices of Chinese small firms.
Keywords: Small firms, Company performance, Marketing strategy, China
A model of behavioral intention to buy domestic versus imported products in a Confucian culture This study examines the predictors of Korean consumers' behavioral intention to buy imported and domestic products, based on Lee's revised Fishbein model. The revised model incorporated two salient Confucian concepts - face saving and group conformity. There were two phases to the study, qualitative (focus group interviews) and empirical (experimental survey design). From the focus group data, parallel self-report mail survey instruments were developed and sent to Korean students studying temporarily at a large midwestern university in the USA. Instruments were randomly assigned to subjects using a between-subject experimental design. Findings indicate that there is a positive relationship between Korean consumers' attitudes toward a product and their product evaluation. Further, there is a positive relationship between their attitudes and their intention to buy either domestic or imported products. The components of cultural pressure, face saving and group conformity have a weaker influence on attitudes than product evaluation, and they are significant predictors for domestic products but not for imported products. Finally, managerial implications and marketing strategies are discussed for multinational and domestic marketers.
Keywords: Consumer behaviour, National cultures, Country of origin, Confucianism
Toward a framework for entering China's pharmaceutical market The pharmaceutical industry in the People's Republic of China (PRC) has been highly regulated, particularly ethical products. Promulgation of the socialist market economy and the recent reforms in national healthcare industry have compelled impetuses for change in the distribution systems, forms of investment of multinational pharmaceutical companies, and product/market strategies. The conventional wisdom on pioneer marketing may be challenged by these situations in the PRC. This study examines four markets that encompass both specialty and general pharmaceuticals so as to explore whether there is a product category effect on entry strategies. The findings indicate a possible synergistic effect of product category and order of entry. In addition, product life cycle has a direct impact on order of entry whereas brand position has an effect on product category. Both government policies and corporate strategies have implications on product categories and order of entry. The recent reforms in China have helped to build a foundation for pharmaceutical companies to conduct business in a manner that is similar to that of the developed countries. The entry strategies for pharmaceuticals may therefore involve more complicated considerations in accordance with these new arrangements in the legal and regulatory environments. Further research into relationships among these variables and the mediation effect is therefore indicated.
Keywords: Marketing strategy, Market entry, Phamaceutical industry, China
Relationship selling and customer loyalty: an empirical investigation Examines how customers' loyalty is influenced by their relationship with the firm at two distinct levels: the specific relationship customers have with their salesperson; and the overall relationship customers have with the firm. The findings highlight the importance of strong customer-salesperson relationships in the development of customers' overall evaluations of the supplier firm. Furthermore, both types of relationship were found to impact positively on the probability of customers exhibiting behavioral loyalty.
Keywords: Relationship marketing, Trust, Customer loyalty, Sales method
Strategic outsourcing: evidence from British companies Outsourcing has become an increasingly popular option for many organisations. But they vary in terms of activities being outsourced, reasons for and benefits from outsourcing, and how the decision was made. This article presents an empirical research on 14 companies. It found out: in most cases it was the "peripheral" support activity being outsourced with cost reduction as the primary driver; outsourcing decision was being made early in the process without active involvement of the in-house provider; and there were problems in supplier selection and management. The research identified pre-outsourcing decision process and post-outsourcing management as the two key areas that gave cause for concern, and offered recommendations for improvement.
Keywords: Outsourcing, Decision making, Supplier relations, United Kingdom
International pricing - a market perspective Examines the factors that must be taken into account when determining the international pricing of a product, utilising specific examples from industry. Argues that specific country preferences require organisations to adapt pricing. Promotes a framework for analysing the micro environment and identifies ways in which organisations can use international pricing to gain a competitive advantage. Proposes the need for a predetermined management mentality and points out that until pricing is given the attention it deserves, and is respected as an essential element of international success, organisations will under-perform. Presents limitations and offers direction for further research.
Keywords: Pricing, International marketing, Competitive advantage
The use of performance information in the management of service delivery Reports on a programme of research undertaken to understand the manner in which leading service organisations develop, use and integrate measures of their outlets' activities and performance. In particular, looks at the extent to which academic guidelines for adding value to performance measurement systems are applied. Four service sectors where service delivery is seen as being critical were selected for the research. In each of these sectors, one of the top four organisations (in terms of turnover) agreed to collaborate in the development of a series of case studies. The research found linkages between objectives, drivers and key performance measures. However, the organisations still have some way to go in moving performance measures from being something that keeps score to something that helps people and teams improve their performance. Clarity of the communication of results and their relationship to corporate priorities is also an area where major development is still required. Finally, there is a tendency for performance measurement systems to be technology driven rather than needs driven. As a result, the complexity and breadth of measures now available may actually make it more rather than less difficult for service outlet managers to manage.
Keywords: Service quality, Performance measurement, Customer satisfaction
Application of a new brand monitoring strategy to grocery products at a convenience store At a store of chain retailers in Japan, a manager must select some new products from the list offered by the head office and, at the same time, he must determine which products should be replaced by the new products he selects. For the purpose of supporting such a decision, the authors have already proposed a new brand monitoring strategy for a certain category at a retail store and provided its mathematical model. Reviews their model emphasizing its practical aspects, and applies their model to actual data on grocery products collected from a convenience store with a discussion on the characteristics of their model.
Keywords: Retailing, Stores, Grocery, Brands, FMCG, Japan
The qualitative contents of television advertising and its penetration: the case in Japan Examines the penetration of television advertising in relation to the qualitative contents; continuity of the advertising; exposure patterns; and whether or not the advertising is for a new product. Results were found that advertisements with positive cognition and/or effect achieved deeper penetration than those with negative such. It was also found that series advertising using the same spokesperson and/or the same tone of appeal achieved deeper penetration than non-series advertising and that penetration began to reach saturation by non-series advertising earlier than by series advertising. Long-term exposure raised its penetration level when its frequency of contact increased. Short-term exposure made penetration begin to reach saturation earlier than long-term exposure. Further, it was found that advertising for existing products achieved deeper penetration than advertising for new products.
Keywords: Advertising, Advertising effectiveness, Television, Product launch, Japan
Time series analysis of daily scanner sales: extraction of trend, day-of-the-week effect and price promotion effect Access to daily store level scanner data has been increasingly easier in recent years in Japan and time series analysis based on a sales response model is becoming realistic. Introduces a new method of combining time series analysis and regression analysis on the price promotion effect, which enables simultaneous decomposition of store level scanner sales into trend (including seasonality), day-of-the-week effect and explanatory variable effect due to price promotion. The method was applied to daily store level scanner sales of milk, showing evidence of the existence of day-of-the-week effect. Further, a method of incorporating several kinds of price-cut variables in regression analysis and the analyzed results were presented.
Keywords: Time series analysis, Regression analysis, Sales promotion, Pricing strategy, Japan
Beyond relationship marketing: technologicalship marketing Argues that relationship marketing is not a complete paradigm shift. Without effective use of technology, relationship marketing is not an effective strategy. Hence, relationship marketing, based on technological advances, can be considered as a new paradigm. It is demonstrated that everything companies do to build consumer loyalty is affected by technology. It is shown that traditional, relationship, and technologicalship marketing are fundamentally different. The technologicalship marketing allows for different types of synergy effects, solutions, different customers, and different types of interactions and relationships.
Keywords: Relationship marketing, New technology, Marketing strategy, Technology led strategy
Attitudes toward church advertising in Hong Kong Investigates whether there is any room for church advertising in Hong Kong. The research was a cross-sectional survey and questionnaires were used as the instrument to collect the required data. The results clearly demonstrated that church advertising should be further developed. But, the clergy should be more cautious in using advertising because the study found that not all kinds of church advertising received the same level of acceptance among Christians, non-Christians, and even the clergy.
Keywords: Advertising, Churches, Beliefs, Religion, Marketing, Hong Kong
As always we have only skimmed the surface of relevant articles this week and only those that are particularly relevant for Asia-Pacific managers. Many other articles are available as well including those focusing on other countries and international perspectives.
Awakening Dragon - Piset Watanuvutakal's column often addresses Chinese marketing issues |
| |||||||
Asia Pacific Management Forum Asia Market Research dot com Branding Asia dot com
asia's only dedicated daily ezine for the asian business, management, strategy & marketing professional
research articles news independent columnists business strategy market & street intelligence
| email updates | email this page | discuss | search | today's asian business strategy news | advertise | about |
| daily asian news, research & commentary for the international business strategy, market research & strategic management professional |