Sony and the Marketing Mix - Essay Example

The Board of Directors of Sony Corporation Global Solutions plc December International Marketing Report Introduction Sony International Corporation is a Japanese multinational company with its headquarters in Tokyo Japan. Its founders were Akio Morita and his counterpart Masaru Ibuka. They popularly used the nickname; the Sonny boys since they are the ones who came up with this outstanding innovation saw the light of the day in the late 1950s when the two decided to go commercial with the Sony concept. It is among the leading assemblers of electronic gadgets for both consumers and the professional markets. Sony is one of the leaders in the entertainment industry as it manufactures entertainment gadgets like video games, televisions, and many more. According to Interbrand top a hundred Global Brands in the year 2011, Sony emerged position thirty-six among other a hundred brands. It is also among the top a hundred effectively managed companies across the business world (Koontz & Weihrich, 2006:104). This was because of its renowned heritage of creativeness and innovativeness. Sony boasts of having products in the electronic, games, entertainment, and in the provision of financial service sectors. In this regard, this essay will delve on a critical analysis of Sony’s marketing mix across the international markets. Further, it will highlight the International Process Theory that correctly describes Sony’s internationalization with supportive evidence. Lastly, it will discuss the extent to which Sony’s company country of origin influences consumers’ perception of Sony’s products by giving proper justification. Sony and the marketing mix Marketing mix is a business-marketing tool, which encompasses the four Ps in the influencing of consumers towards accessing a company’s products and services for the attainment of its goals and objectives (Lamb et al, 2008:148). The four P’s are price, place, promotion, and product that when mixed reflect the nature of different services within a market. Sequentially, Sony Company has managed tot use this marketing tool in the diversification of its products and its price range to favor its consumer base. Additionally, Sony has capitalized on favorable places in which they distribute there products and have implemented various promotion strategies to increase awareness of its products to its target market. Product In essence, a product is anything presented to a market for the market to be aware of its existence, after which they will buy, and then use it to satisfy either a want or a need (Richter, 2012:29). A certain number of factors influence a products uptake within a market that may range from the brand name that a market associates its products to a number of others. In addition, the packing aspects of the products and the safety standards applied within the use of the product also influence the sale of products. Remarkably, the style, packaging, quality, and warranty associated with the product are attributes that also propagate a consumer towards buying of certain products within a market setting. For instance, consumers tend to access products from company’s who offer variety and improvement in the quality of already of already existing goods in a market. In this regard, Sony Company offers a number of products to the electronic, games and entertainment fields. For instance, the company manufactures television screens and projector, cameras, home theatre systems, computer hardware, mobile phones, and car entertainment devices. Additionally, Sony is a manufacturer of home recording devices, storage media, and charging devices. Ideally, Sony has further divided some of its products in to other sub categories especially on the television products. This has made the company able to service its market thorough the innovation of tailor made products that suit their various clients. These customers include households, offices, and public gatherings. Ideally, their products are able to meet the needs of their customers without financial constraints as their quality dictates the price. Pricing Undoubtedly, the price decisions within any organization are through extensive consultation with the marketing department (Lamb et al, 2012:469). This is no different for Sony Company as the marketing team is in charge of price allocations. Ideally, price is the only variable in a marketing mix that is changeable with relative ease. In addition, price is a key factor in the assessment of the value gained by consumers through the acquisition of a company’s products. Subsequently, consumers relate price to the quality of the product on offer for retail particularly for those that have intensive technology application (Hundsen 2008:422). For instance, the pricing products manufactured by Sony ranges from moderate to high prices because of the quality standards associated with its brand name. Sequentially, the price of its products draws relation to the use of the products and the targeted market within which the manufacturing intended to attract. Therefore, certain attributes within Sony’s products like style, portability, purpose, user, and performance levels have different price levels attached to them. Therefore, the more the qualities and technology applied translates to the escalation of the price range because of the attributes. Moreover, Sony’ products tend to associate with the luxurious kind of lifestyle in which satisfaction is on wants rather than needs. Therefore, Sony’s appealing nature to the idle and upper class levels of society have enabled it to stay relevant in an intensely competitive market. This translates to high profit returns and cognitive presence in the market making it a globally recognizable brand. Place Place is the third variable in a marketing mix that denotes the decisive factor in which the distribution and the availability of the product to consumers are the key aspects (Gitman & McDaniel, 2008:295). Usually, the sale and distribution points are relatively in an area where customers can easily access them for the satisfaction of their needs. In essence, the location of products depends on the nature of goods on sale where the marketing team establishes a distribution channel that is intensive, effective, and ideal to the market (Czinkota & Ronkainen, 2007:19). For instance, Sony Company practices ideal distribution of products from the mother company through Sony World because of its high handedness of durability and quality products. On the contrary, its market in the Asian continent does not experience additional qualities like guarantee since the company considers it is as its region in terms of marketing. In this regard, intensive marketing of the company’s products within this region is the topmost priority Sony Company. The company uses the three levels of distributions that are the zero level, one level, and two level channels. Essentially, the zero level of distribution involves the manufacturer directly interacting with the customer in the distribution of products without invoking the services of any intermediaries. Secondly, the one level channel of distribution involves the manufacturer having to use a retailer for services to get to the consumer (Dransfield, 2004:578). Lastly, the two level distribution channels are the longest form of product distribution where the products go through a wholesaler and a retailer before they get to the consumer. Remarkably, Sony attributes its increase in sales to the internet because it has narrowed down the distribution link to one that is of ease to the consumer. With the internet, a consumer only needs to order for their desired goods within Sony related sites where information on the location of the nearest retail shop is visible. The product information concerning price of Sony’s products is accessible within the click of a mouse button in this way of on line shopping. Subsequently, Sony has managed to make shopping and accessibility of their products easy to their consumers making it a worldwide brand of choice. Promotion Essentially, product promotion is a vital aspect within a marketing program that connects with effective communication to favor the needs the consumer and the marketer. The promotional aspect is the only convincing factor that a company may use to attract customers in to continued uptake of the company’s products (Barker & Angelopulo, 2005:138). It helps creates awareness to the market and consumers within regulated means to influence preference of a company’s products and services over the others available within the same market. In essence, Sony has capitalized on communication for it to capture the Asian market and the larger market too. It ensured that promotional costs factored in its budgetary allocation for its 2011 financial estimates. A greater percentage of the promotional allocation went to the creation of awareness through digital avenues. In addition, the components of production as a part of a marketing mix include product advertising, direct marketing of products, personal selling, and public awareness of the products. Moreover, Sony also uses sales promotion in which it incorporates incentives as a way of structural improvement on sales capacity. They include free samples, lotteries, early bird pricing, coupons, discounted offers, scratch card promotion, among many others. Ideally, Sony has managed to use its favorable public rapport to maintain significant relations with its employees, consumers and other relevant stakeholders. The use of its website as an interactive tool has necessitated the company to have lasting relations with those it connects with both on public or individual levels. In essence, the feedback from the client base and other stakeholders helps a company improve on the quality of service that it sells to its market. In this regard, the attainment of the title of top most hundred brands was because of the involvement of the promotional aspect within its marketing mix to ensure that their products were dominant in the market. Sony, marketing mix adaptation across the international markets Subsequently, Sony has used the four in establishing a marketing mix, which worked out well as part of its marketing strategy. For instance, the company used advertising to publicize its products through different media tools. It has also made particular interest in advertising through topics of interest like sports to tap in to a wider market. Additionally, the company has used print media to get the information to the consumers in a large number of nations. They have also allowed for direct response advertising within its operations in which a consumer gives the seller a direct response about the impact of the product in their life. Remarkably, the company has applied the use of advanced technologies to improve the quality of its products. This has made them the trendsetters in their respective market because their innovations have made others follow suit. Some of these advancements include three dimensional viewing, high definition cameras, and state of the art computer gadgets. In addition, Sony has also ventured in the portable devices world by manufacturing audio devices with features that the young generations have embraced as a part of their daily lives. Further, the electronic manufacturing giant has also devised mobile phones that perfectly fit in the twenty-first century. This is through the incorporation of mobile phone applications within its communication gadgets that fit in the modern lifestyle. Therefore, Sony’s product value in the marketing mix has established an extremely worth rapport between the company and its customers hence Making it appear on the top a hundred global brands. Sony Internationalization process within this theory In economics, internationalization is the process by which a company becomes more involved in markets across its geographical scope. It can be a way in which a company becomes a multi national company (Magadart, 2009:24). The process follows different steps in its implementation where the first step involves the company selling its products in a local market. Secondly, the company ventures in international markets after which it establishes international sales frame works. This marks the company’s multi national status. Theories of Internationalization The industrial network approach This theory implies that a company through its networks involved in the manufacture, supply and consumption of a company’s products and services establishes lasting ties. The company engages in this process through formal and informal mechanisms to penetrate different national markets. Essentially, the industry’s network perspective establishes the deficit in the formulation of a market entry strategy. This theory stresses on how a country’s sales agents facilitate the internationalization process effectively. In addition, this theory encompasses the progressive learning and development of market information through industrial firm that allow the company to establish root in foreign countries (Johnson & Turner, 2009:241). In essence, this framework affirms a company’s network expansion and penetration within mutually supported structures. The Uppsala Model This model depicts how companies gradually intensify their operations within foreign markets across their own home market (Johnson & Turner, 2004:150). This model revolves around notable features that include a company gaining exposure from its domestic market before venturing in to foreign markets. Secondly, a company spreads its operations to neighboring culturally and geographically nations then it moves on to distant cultural and geographic countries. Lastly, a company may start with foreign operations by exporting its products without featuring in the domestic market then including intensive and tasking operation strategies. In essence, the Uppsala model insinuates that exports begin from low levels then gradually intensifying in to regular exports as part of expanding its market presence. The Uppsala model explains the obstacles that foreign markets may present in the internationalization process. However, this model despite its challenges in implementation it is an fundamental aspect of ascertaining whether venturing in to foreign markets will be worthy (Shepherd & Katz, 2009:125). A business strategy model In this model, a company’s decision to go international is rational with its base firmly fixated on the transactional cost that the company will incur in its operation cost. Its main criteria are on a vertical inclination in that the organization applies its various experiences from across the world to draw conclusions. Essentially, this model necessitates the need to associate theory and practical approaches in order to ascertain the most suitable way of going about the in the nationalization process. The company invokes the services of a number of variables during its decisive process of going international. These market specific variables may include the market attractiveness ability, perceived proximity to the market, accessibility to the market, and communication challenges involved. Sequentially, a company may use the technological existing in tits intended country of investment to its own advantage. By bringing, the new product in to the market will increase the company’s reference by the consumers because of its ability to meet their needs or wants. In this regard, the company that incepts these new goods in to a foreign market enjoys monopoly until a competitor emerges to shake its market dominance. The eclectic paradigm and transactional cost model In this model in economics, the transactional cost aspect comes in to play in that transactions may occur within an institution only if the costs of the market are slightly higher than a company’s internal cost. This theory involves three more component s that compliments it in to being a framework for internationalization (Dunning & Gray, 2003:16). The three are ownership, location, and foreign advantages. The first component involves the attributes drawn to the product that make the company own it. For instance, they may be the company’s trademark logo, work force skill, and the technique employed in the manufacture of the product it gives a company’s product foreign advantage. This is because of increased competitiveness, which influences additional investments in ensuring market presence of a product. Secondly, the location implies the availability of raw materials for the processing of the product, the minimal wage cost, and the taxes imposed by the government in the sale of the product within a country (Fletcher et al, 2004:107). This means that the immobility and nature of the raw materials within a permanent source makes it possible for a company to make foreign direct investment due to the consistency of the supply. Finally, the internationalization variable invokes the sole production of the product rather than a partnership venture form of product ownership. In essence, remarkable net sales across the border influence a company to invest in a foreign product markets. Sony Company and the internationalization process theory In line with the internationalization theory process, Sony Company seems to have implemented the Uppsala model in the process of it going global. In essence, the company started with its roots in Japan where it sold electronic gadgets through its founder members. Its growth in to foreign was gradual as its growth took shape when it penetrated in to the North American market (Ebner, 2011:2). Ever since, the company has diversified its products in to a wide and customer oriented way. The Uppsala model has proved advantageous to the company since the company now enjoys global preference due to its quality and portrayal of luxurious lifestyle. In addition, the model is visible in that the company started by venturing in to its closest cultural and geographical neighbors then gradually penetrated other distant markets like the United States. Ideally, the production of Sony’s products is mostly for foreign markets since the demand from these markets has gone to extreme appetites level. The company has expanded its foreign market stability levels that have made its brand name be a household name. Japans influence on consumer perception of Sony Corporation The country of origin (COO) in business refers to a product’s country of manufacture that receives protection from both local and international laws. It can be a way of drawing a distinction between products form those of rival companies. In essence, similar products with a different a country of origin had the consumer draw different perceptions of the two products in question (Helsen & Kotabe, 2009:92). The country of origin has an influence on a consumer’s view of the product quality and willingness to buy and consume the product. On the other hand, consumers tend to have more preference to products from their own country than of those manufactured in other countries. In this regard, the country of origin has immense significance on a products penetration and demand within a market (Wa?chter, 2003:2). Further, the consumers tend to utilize a product’s country of origin rather than the product itself in terms of the product satisfying a customer’s luxurious wants rather than the needs. Therefore, a product’s country of origin depicts class and superiority to the consumers. This gives way to stereotyping of products by the consumers according to the product’s country of origin. For instance, the mention of some countries to some consumers without trying the product makes them conclude that the product on sale is weak and unable to satisfy their needs. Sequentially, country of origin plays a role in the assertion of whether a customer base will take up the product or not. In reflection to Japan as Sony’s country of origin, the consumers view products from this country as those that are of high quality and technologically up right (Gillespie et al, 2010:180). Mostly, the products from this country have associate to warranty, which stands as a mark of quality and trust. Moreover, the products from this country tend to have relatively high prices than the ones from other countries because of the quality attributes around their products. This is no different for Sony’s products, as their guarantee emphasizes that their products last as per their description. In this regard, Sony Corporation country of origin has made the brand name be one of the most acknowledged in the electronic world because of Japan’s remarkable strides in the technology field. Their product sale across the globe is in millions of dollars because of the attributes given to Japan as a technology hub. Conclusion Sony Corporation deserves to be among the top a hundred best global brands due to its ability to connect with consumers across the globe. The company is able to infuse the marketing mix strategies to continue to stabilize its market presence. In addition, the company’s internationalization process through any of the theories above may make the company’s asset and customer base increase tremendously. This will be through tapping in to foreign markets that the company might have not ventured in to. In essence, internationalization is a process that which may take the company’s the rest of its life since new markets emerge as time goes by. In this regard, it is vital for Sony to adapt to the changes presented to it in order for it to maintain its title among the best global brands. For this reason, the company needs to continue exploring avenues that may make it better in order for them to make higher strides. This may be through regular conduction of SWOT analysis to ascertain the company’s status from to time-to-time. Finally, the company will improve on its world rank position in the best brands positioning only if it is willing to acknowledge that there are steps of progress that need covering. Bibliography Anonymous Interbrand Top 100 Global Brand 2011 Retrieved from 31 October 2012 http://www.slideshare.net/Briancrotty/interbrand-best-global-brands-2011-10192970 Barker, R., & Angelopulo, G. 2006. Integrated organisational communication. Cape Town, Juta Academic. Czinkota, M. R., & A. Ronkainen, I. 2007. International marketing. United States, Thompson. Dransfield, R. 2004. 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