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The Mobile Phone Market in China - Essay Example

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MARKETING STRATEGY The mobile phone market in China BY YOU YOUR SCHOOL INFO HERE DATE HERE The mobile phone market in China 1. Introduction China represents a newly industrialized country that is providing new opportunities for expansion and growth of businesses that develop and market mobile phones…
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The Mobile Phone Market in China
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"The Mobile Phone Market in China"

Download file to see previous pages At the same time, there is a heavy reliance on group affiliation and group membership in China that continues to feed growing consumption demand ratios for mobile phone products as a means to stay connected with other Chinese family members and peer acquaintances. There is also a growing demand for mobile services in the business environment for executives and generic employees alike, representing a whole different market segment other than just the middle class Chinese buyer. Therefore, there are multiple market segments that are available for targeting which will require the creation of an integrated marketing campaign for business and generic consumer markets. China, however, is a saturated market for mobile phone marketers, with such competition as Nokia, Motorola, Toshiba, Panasonic and other local Chinese manufacturers under partnership with NEC and other Chinese service providers (Myers & Yuan, 2008; Wang, 2005). This must be taken under consideration prior to market entry as unit volumes of competitor mobile phones have exceeded 134 million in 2008 (Fu, 2007). Subscribership to mobile services of varying variety has reached 480 million in China by 2008, a 20 million unit increase since 2007 (Fu). Thus, in order to be competitive in this market, the business must develop a marketing strategy that targets key demographics using a marketing strategy that is differentiated from competition and caters to local market needs. In 2006, Mitsubishi was forced to exit the Chinese mobile market due to a lack of acceptable market presence and failure to adopt marketing strategy to fit the local Chinese consumer (Myers & Yuan, 2008). Toshiba also was forced out of the market in 2006 after a joint venture with Nanjing Patina Wang Zhi Corporation was unable to meet market demand (Myers & Yuan). These are important factors to consider that have opportunities for new market entry and also to illustrate the importance of consumer influence in the Chinese mobile market. Despite the saturated presence of competition, research has identified much significant potential for revenue growth in China if the business develops an appropriate integrated strategy that targets multiple buying groups. The goal is to maintain an image of local market fluency that fits the psychographic profile of Chinese consumers related to their lifestyle, preferences, and social tendencies. This report provides research data on the Chinese consumer, the mobile market, competitive practices, and describes opportunities for short-run and long-run revenue growth in this difficult NIC market with ample consumer market availability. To succeed in China, the business must be flexible, innovative, and also invest considerable capital into promotion and advertising. 2. Background analysis on China The Chinese market currently maintains a 34.5 percent growth in mobile phone usership, with an increase of 20 million year to year in subscribership to mobile services (Fu, 2007). Growth in mobile phone usage has occurred by new industrial developments, new job opportunities, and also the balance of payments equilibrium that exists in China associated with import and export volumes and capital expenditures. The Chinese government maintains a significant trade surplus with other countries, but is able to offset this through capital outflows into foreign investment (Warren & Keegan, 2009). China has been ...Download file to see next pagesRead More
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