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Marketing Mix Tools When Going From America Into China

1214 words - 5 pages

Consumers consider price, brand, time of delivery, and the quality of the product in making choices on which products to use in the market place, hence the reason it is important to focus on fulfilling the elements in marketing products to consumers. In moving a product from the American market to the Chinese market, similar considerations are necessary since similarities and differences exists in the response of consumers on the use of different marketing mix tools in promoting products in the two countries. Due to the complexity in marketing luxury products in China, it is advisable for marketers to analyze the market in China in order to identify the critical elements for consideration in marketing prior to introducing the commodity in the Chinese market (Kittichai, Ruoh-Nan & Jennifer 60). The techniques used in marketing should slightly differ from the strategies used in promoting the same product in the American market. This is because the cultural perceptions of consumers in the two countries influence the decision of shoppers in purchasing luxury products. In marketing, the focus should be on the effective use of price as a major tool for penetrating the Chinese market as discussed in the paper.
Pricing techniques
The use of the premium pricing together with the skimming technique in which the company will price their products higher than those of competitors before reducing the price with progression in time are the selected marketing mix technique for consideration by sabon. The company will use the first strategy in targeting the high-end market in pricing their products since the strategy works well for Western companies that seek to establish their presence in the Chinese market. Higher pricing in China will capture the interest of the growing upper middleclass and this will provide opportunity for the company to venture in new territories unexploited by American companies. For years, Western marketers have premium strategy and skimming strategy in increasing the purchase of different commodities in china (Yang,et. al.88) The premium strategy works well for established brand since a considerable number of people in China value their status in making decision. Furthermore, it is easier to convince a consumer in the high-end segment of the market to purchase a highly priced commodity from a recognizable brand like Sabon as opposed to purchasing highly priced products for unknown brands. The focus of sabon should be pricing their products effectively in order to motivate the consumers in the high-end market to purchase items of high quality in large quantities.
Market assessment
In order to capitalize on the existing opportunity, the marketer should first conduct a survey to establish the relationship between pricing and increase in sales in the Chinese market before selecting the appropriate pricing technique for use in marketing the soap (Xu & Susan 308). The researcher might use existing information on the performance of Western...

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