Consumer Experience and Experiential Marketing - Case Study Example

Marketing Student’s Name: Instructor’s Name: Course Code: Date of Submission: Executive Summary This report discussed the various concepts of marketing. According to this report, there are various methods which can be applied by a company to enter into foreign market and they include licensing where the company can license a local company to manufacture products and sale them on behalf of the foreign company. There is also a joint venture where the company can join with other organizations which manufacture food products to enter into foreign markets. The marketing strategy recommended in this report is community marketing. In addition, the report discussed the ethical issues which the company can encounter and they include changes in consumer patterns and social-economic issue. Finally, the report recommends that the company can manage these issues promoting diversity at the workplace and conducting market research to understand the local culture like learning the language. Introduction Marketing is an important function as it helps to determine the success of any organization in both internal and global markets. This is because it helps the marketing team to create awareness of the products and services to customers. Effective marketing should the buying behavior of the customers and this can be achieved by conducting marketing frequently. Culture and social aspects greatly influence the organization of the marketing function (Bernd & Lia 2013). This is because the marketer should consider the most marketing technique to use which can appeal to the target market failure to which the target market will develop a negative attitude towards the products being promoted. In this regard therefore, this report will discuss the various concepts of marketing which should be considered when expanding the market into Turkey and the method of entry into the global market and the marketing strategy to use in expanding the market. Market entry strategies There are a number of strategies which can be applied by the organization to enter into the Turkish market. The first strategy to enter into the foreign market is licensing. This is the strategy whereby the organization will permit a company in Turkey to manufacture and sell products on its behalf. The licensed company can use the same manufacturing process and trademark in manufacturing the products. This strategy helps to create awareness of the products in the foreign market and it will be easy for the company to expand its operations into the foreign market. Advantages of licensing include; It is a good way of starting the business in the foreign market because it lowers the risk of entering into the foreign market. This is because the manufacturing fully rests on licensed company and in any case it’s the one which will suffer the loss, but if the products succeed in the new market the company will benefit when it takes full control of the foreign market (Blythe 2001). It also reduces the capital which could be tied up in the foreign market as a result of installing the necessary equipment to manufacture and offer products to the customers. Instead this capital can be used to expand the operations of the company. Licensing also provides the option to buy into partner. However, licensing has some disadvantages which include limited participation form. The licensed company may have limited participation due to inadequate in agreement and use of the trademark. In addition, the partner acquires the manufacturing knowledge, thus will start manufacturing the products on its own which can be a disadvantage to the parent company. Another method which can be used to enter into the Turkish market is joint ventures. This is where investors share more than single ownership to the right of operations (Ziethmal & Bitner 2003). The advantages of joint ventures include sharing of risks. The partners share the risks which are associated with operating in the foreign market. In addition, there is financial strength since the companies join their financial resources, hence they can be able to conduct intensive research which can improve their operations. This will help to improve the entry strategy of the companies into the Turkish market. Furthermore, joint ventures can be the supply source for the third party thus is effective supply of the products to the end users. On the other hand, joint ventures also have disadvantages. The first disadvantage is that the partners do not have full control of the venture. This is because the management rests on both parties to the venture hence there is no one party which is regarded better than the other (Van 2002). It may also be hard to recover the capital if there is a need. This implies that the capital will be tied up in the joint and this becomes hard for the individual companies to recover capital. Finally, there may be disagreements between the partners and this may lead to immature break up before the joint venture achieves its goals and objectives. In this regard therefore, the most appropriate entry strategy that can be effective to entry into Turkish market is licensing (McDonald 2002). This gives the organization an opportunity to minimize the risks of entering into foreign market and also the capital, which is to be tied up in the foreign market thus licensing is the most appropriate strategy to enter into the foreign market. Marketing strategy The marketing strategy recommended for the company when entering the Turkish market is community marketing. This is the technique whereby the company focuses on the needs of the existing customers and developing strategies to maintain them instead of using resources to attract new customers (Randall 2001). Since the market entry strategy is licensing the local company will have created awareness of the products and services to the customers. In this regard, the marketing strategy to be used is community to maintain the existing customers who will then improve the good reputation of the company thus attract new customers. The advantage of this strategy includes; it helps to promote loyalty among the customers. This is because the company focuses on the needs of the customers and develops strategies which help to meet their needs. The customers will learn to trust the operations of the company and in the process they will develop confidence in the quality of products and services offered by the company hence they will be loyal customers of the customers. Community marketing also helps to satisfy the customers. The company focuses on the needs of the customers and offers the products and services which help to satisfy their needs (Proctor 2000). This will help to increase the satisfaction of the customers and in the process, they will be satisfied better. This will enable the company to have return customers which will benefit the organization since it will improve the sales. In addition, community marketing helps to create a good relationship between the community and the organization (Philip 2011). This is because the company will be engaged with corporate social responsibility and help the community improve its standards. This helps to improve the reputation of the organization in the society which helps to attract more customers while using little resources. However, the disadvantage of community marketing is that it is a slow method of growing the operations of the company. This is because it is a slow method of sensitizing the products and services of the company (Brassington & Pettitt 2002). The different communities have different needs and therefore it is hard to satisfy the needs of each community, thus it will be hard to reach out a greater scope of customers. Ethical issues affecting the operations of the company There are a number of ethical issues which the company can encounter while expanding the operations to the foreign market. The first ethical issue is the cultural issues. The target market in Turkey may prefer different food products other than the one the company manufactures at home. This is because their social norms prohibit the consumption of some certain foods and this will affect the company’s operations (Ellwood 2002). In order to manage this issue, the management of the company has to conduct market research the culture of the target market and offer products and services which appeal to the target market and this will help to eliminate the cultural issue. Another social issue is economical issue. This is the issue which affects the consumption pattern of the target market. When the economy is low, the purchasing power of the customers will be low and this will lower the buying power of the customers (Fill 2002). In order to manage the economic issue, the company should segment the market into various segments so that there will be price discrimination depending on the ability of the customers to pay for the food products and the services offered. This will help to cater for the different needs of the different market segments. The social class can also affect the operations of the company. There are different social classes in the foreign market. There are those who are highly educated and would like to associate with other learned people and this implies that their segment will be different from low educated people hence there will be no free association of people (Fifield1998). To manage this issue, the market will be segmented into different social classes which can either be rich and low income earning market segment. The consumption patterns also can affect the operations of the company. There will be different social patterns in different seasons of the year. For instance the demand during summer and winter could be different and if the company does not put the necessary measures in place it will affect the operations of the company. This ethical issue can be managed by focusing on the demand and manufacture food products which can help to satisfy the demand. Lifestyle diseases can also affect the operations of the company. There are lifestyle diseases which affect the consumption patterns of the consumers. This could affect the sales of the company’s since the customers will be conscious of the ingredients of the foods (Hatton 2000). This challenge can be managed by offering food products whose ingredients which cannot increase the impacts of the diseases hence the customers will buy more of the company’s products. Recommendations In order to manage the cross cultural effects, the management of the organization should develop an effective communication strategy which could not provoke the local community (Hoyer & MacInnis 2001). This implies that the promotion will be effective in the target market and it will help to develop a positive perception of the products. Appropriate language should be used when conducting marketing and this will help to increase In addition, the company should conduct market research to understand the local culture of the target market. This will enable the company to develop effective strategies like the advertisement and pricing strategies which will be appropriate to target market (Kerin & Peterson 2013). This will help to include the ethical issues in the strategies, thus manage the resistance from the customers. Moreover, the company should be able to develop diversity at the workplace. This strategy helps the management of the organization to develop multicultural in the organization which will help in understanding the local culture (Kotler & Chernes 2012). The local employees will help the company to understand the local culture, hence avoid strategies which can lead to conflict crash. Conclusion Marketing is an important aspect which helps an organization to achieve a competitive advantage as well as penetrating into new markets. There are a number of strategies which can be used to enter into foreign markets. The first one is the licensing and joint ventures. Licensing helps to reduce the tied up in developing the new markets while joint venture helps to share risks of entering into new markets. The marketing strategy that can be used to promote the company’s operations is community marketing as it helps to create loyalty among the customers. The ethical issues which can challenge the company’s products include consumption and the cultural issues. These issues can be managed by practicing diversity at the workplace and conducting market research to understand the local culture, hence avoid conflicts with the target market expectations. References Bernd, S & Lia, Z 2013, Consumer Experience and Experiential Marketing: A Critical Review, Minneapolis, Lominger. 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