Executive SummaryCompanies can clearly balance the goals of the customer (in relation to customer loyalty, satisfaction, profitability and sales) compared to other company performance targets if it knows the customer’s behaviour keenly. For example, a company’s balanced performance evaluations. A significant consideration at this juncture is an overall altitude of organizational commitment to customer objectives, without taking this commitment customer information systems will have a very limited impact. Marketing managers should embrace the concept of all inclusive decision making process in order to formulate viable and marketing strategies that will boost the competitive edge of the company over its rival firms in China.
The company can only cope with such changing business environment if it constantly carries out research in the market. It should be noted that no matter how attractive an opportunity can be in China BAT Company cannot fully utilize it if it does not have the distinct competencies to handle it. One of the main rationales of segmenting a market is to allow your sales agenda or marketing stratagem to centre on a specific division of scenarios that can purchase the products.
When market segmentation is done properly, it is likely that the highest returns on marketing expenditures will be achieved. What determines the success of market segmentation strategy is whether it is focused on an individual customer or business that defines the definite accomplishment. International BusinessThe issue of going global by various multi-national firms in this modern world has become a common scenario because host companies are often faced with the saturation of home markets for their products. Therefore in an attempt to increase there market share in the market place they practice diversification with the hope of achieving considerable returns and at the same time attain the desired profitability margins.
As a researcher, i will focus on British American Tobacco based in the U. K and has its headquarters in London in its attempt to market its tobacco products in Asian continent and particularly in China. From the research I carried out the U. K is considered a developed country and over the past few years its economic conditions have been rated to be among the best in the world.
However, given that now BAT Company has successfully opened subsidiaries in the U. K in nearly all regions it is now considering to go global and the management has identified China as the best target market for its products. Reports suggests that China on the other hand is a developing country with recent reports suggesting that soon it will supersede the likes of The U. K and the U. S in terms of economic growth. (Lee and Carter, 2005)Research indicates that China in the early history was considered to be a socialist country but over the years it has embraced the concept of capitalism which allows the factors of production that is labor, capital and entrepreneurship to flow from and outside China.
With such a system it has now presented an opportunity to BAT Company to invest in China because of the growing demand for tobacco products. However, China is still considered conservative in terms of marketing practices and BAT Company may face problems like; China has been traditionally reported to be protecting the host companies from unfair competition from large companies and therefore this will not be favorable to BAT Company because they will be some other practices that will hinder the attainment of objectives of the company.
This is unlike in the U. K where globalization concept is left to freely control the market operations that are in the U. K the market forces are left to determine a particular industry and no such protection of host companies from competition of outside. (Kotler, 1996)