Marketingin Czech Republic
Marketingin Czech Republic
TheCzech Republic is experiencing continuous economic growth withincreasing gross national production. The condition associates withforeign market development, oil pricing reduction, and solid domesticfiscal policies (Czech Republic: 2016 Country Review, 2016). Howbeit,this advantageous news should attract caution since the countyendured a notable lengthy recession, which concluded in 2013 afterthe collapse of the pro-austerity government. In this paper, I willdetermine the best approach to market the front load washers anddryers in the Czech Republic considering the legal, political, andeconomic significance, product differentiation along with alternationapproaches, marketing mix, and staffing strategies.
Legal,Political and Economic Significance
Tosell the ABC Washing Machine Company’s products, as the CEO I mustlead my team to identify several legal, political, and economicfactors that may influence product marketing. Looking at the legalconcerns, my company must adopt a legal process for tradingelectronic devices in Czech Republic and have its individual productselling and marketing policies (ref). Additionally, it shouldconsider the social and ethical rights related to the productqualities and follow regulations set in the country for the washingmachine market. In politics, my company will acknowledge thecountry’s government policies and regulations set on foreigninvestment and the selling of products, as well as, those of thelocal government to increase sales. Economically, I should open up amanufacturing plant in the country allowing the production team toproduce low-priced washers and dryers with similar durability andquality as the present products (ref). Acknowledging the $20, 000average income of the Czech Republic, pricing will ensure that thenationals buy our products with minimal financial stress. To benefitthe company, we can include the initial product marketing andadvertisement investment to utilize resources appropriately.
ProductDifferentiation and Change Approaches
Strategicmodifications are significant when marketing a product in a marketwith similar products from other companies. In agreement with Hunt(2011), product differentiation allows consumers to see thedifference between various individual companies, while alternationapproaches identifies the manner by which one changed presentcomparable product strategies. The product differentiation approachesinclude creating low-priced but quality products and gas generatedwashers and dryers to promote green products. The change strategieswill include conducting a countrywide promotion campaign that willallow the customers to familiarize with the products. ABC washingcompany will use the retail, strategic located in-house warehouses,and online platforms to sell the washers and dryers and offerfive-year product warranties. These selling strategies will guaranteethe availability of appliances to all interested consumers (Hunt,2011). Since present washing machine companies in Czech Republicmainly give three-year warranty on their products, giving 5 yearswill serve as the perfect change strategy.
Inaccordance with Londhe (2014), the marketing mix includes theproduct, pricing, promotion, and place. The tool helps firms developa suitable marketing plan related to product distribution, marketing,advertising, or selling. The product includes manufacturing washersand dryers that are cheap but effective and use gas in place ofelectricity. Pricing will be different depending on the targetedmarket’s financial capability ranging from $2,500 to $4,000depending on the consumer segment. The promotion strategies willinclude both online and offline media including the internet,television adverts, and radio announcements throughout the day. Itwill also include promotion campaigns and word of mouth communicationchannels (Londhe, 2014). Place will include town locations in mallsand individually built stores throughout the Czech Republic.Additionally, clients will manage to find the products in theinternet through the website and in social media arenas.
Internationally,there are several staffing strategies to secure the smooth running ofa business (Jordan & Lawrence, 2012). Polycentric staffing iseffective since it will allow them gain employees from the CzechRepublic, while geocentric involves placing the best employees acrossorganizations irrespective of nationality. Further, regiocentricentails transferring staff into another country’s subsidiaryposition howbeit, stay within similar regions whilst ethnocentricemploys parent headquarter managers in major positions in place oflocal workers.
Thepolycentric advantages include reduced employment cost and betterunderstanding of a country’s market. The staffs enjoy careeropportunities and the company gains government support. Thedisadvantages include communication barriers and difficult activitycoordination between head office and subsidiary managers (Jordan &Lawrence, 2012). Examples include middle-leveled firms having minimalforeign branches. Geocentric merits include inability to identify amanager’s nationality in subsidiary companies and develop seniorglobal managers. It demerits includes increased relocation, training,and compensations costs with examples such as Walmart. Regiocentricbenefits allow managers to compete for jobs and affect decisionsregionally and ensure expatriate smooth adaptation. The limitationincluded identifying with regional rather than internationalobjectives limiting globalization like Asian firms that are continentspecific. Lastly, ethnocentrism conveniences include the manager’sbusiness and technical professionalism, effective headquarters andsubsidiary communication, and personnel development among others(Jordan & Lawrence, 2012). The inconveniences are uncertainty ofexpatriate adaptation, government restrictions, high chance offailure, and high managerial costs as experienced by onlinebusinesses.
CzechRepublic: 2016 Country Review. (2016). CzechRepublic Country Review,1-335
Hunt,S. D. (2011). The Theory of Monopolistic Competition, Marketing’sIntellectual History, and the Product Differentiation Versus MarketSegmentation Controversy. JournalOf Macromarketing,31(1),73
Jordan,T., & Lawrence, C. (2012). CHANGING TRENDS IN INTERNATIONAL HUMANRESOURCES MANAGEMENT: MANAGING APPROACHES FOR EFFECTIVE GLOBALOPERATIONS. JournalOf Knowledge & Human Resource Management,4(8),34
Londhe,B. (2014). Marketing Mix for Next Generation Marketing. ProcediaEconomics And Finance,11(Shapingthe Future of Business and Society), 335-340.