International Marketing
Technology has presented a great opportunity for businesses to expand their operations. In the past, it was difficult for organizations to venture into new countries due to the existence of trade barriers and other restrictions. When looking at the current world, borders are more symbolic than the barriers which used to exist in the past. This means that businesses have realized a new opportunity exists in other nations, which generates more income compared to the home country (Morgan, 65). In other words, this is what is called international marketing, where marketing decisions are made based on the potential markets that exist outside the home country’s market. In this discussion, there is much to learn about the international market. The product which is considered is Sony ps5, which is produced in Japan and marketed to Russia. This way, the Sony company can have a huge market and an increased economy of scale compared to what it could have in the domestic market.
Country and Opportunity
Russia is known because of its enormous size and the significant number of natural resources that are found in that nation. This is the reason why Russia played a significant role in the economy of the Soviet Union. Since 2013 to 2018, this region recorded a weak GDP growth due to low investment, poor demographic outlook, and weak structures (Sukhodolov et al., 69). Things started to change from 2018, making to Russian economy to be ranked as moderately free. The freedom score in 2020 is 61, which is an increment of 2.1 points from the previous year. The increase has primarily been triggered by fiscal health improvement.
When it comes to culture, there is much to learn about the Russians. One is about its population and ethnic makeup, where it is home to more than 190 ethnic groups. According to the central intelligence agency, 77.7 of the population are Russians, 3.7 Tatar, 1.4 are Ukraine, 1.1 Bashkir, and 10.2 others. Most of the Russians speak English as their second language while the majority speak in Russian. When it comes to religion, there are approximately 5,000 religions Christianity and Islam are the largest.
In addition to culture, there is the issue of politics. It is vital to consider the politics of the international market so that the organization can know who to deal with political issues. The president is the head of state, and the prime minister is in charge of a multi-party system. Since the death of a Soviet Union, it has not been easier for Russia to forge a political system (Sherlock, 50). There are three branches of government: the executive, legislature, and judiciary.
Before investing in Russia, several legal issues should be considered. One is about registration, where three entities are used. This includes a closed joint-stock, limited liability company, and open joint-stock company. The other legal issue is taxation. There is value-added taxation, which is 18%, but some categories of products are taxed lower than this. The income tax is at 20%, but small businesses pay 6-15%. For the imports and exports, there is the customs duty where all the cargo that crosses the border must pay.
Target Market in Foreign Country
Market segmentation is where the targeted market is arranged into segments rather than targeting individuals. This makes marketing to be more efficient with time, finance, and the resources available. Segments enable businesses to target customers with similar qualities making the process to be fast and cost-effective (Dolnicar, 12). One of the segmentation to be used by Sony is the demographic segmentation. This is where the customers could be classified based on education, geography, income levels, and gender. This way, the product can reach out to many people depending since they will be in groups. Most important is that each group can be addressed depending on their demographic characteristics. The other segment could be based on lifestyle, beliefs, and values. This is known as the psychographic segment. The other one is behaviour segmentation, which is based on the spending habits of the target customers. The geographic area is a segment that relies on the area code, country, city, and other geographic aspects.
Targeting is crucial when it comes to marketing. This is because it makes it easier to reach out to the customers. When marketing a product, it can difficult for Sony to reach out to every individual in Russia, bearing in mind that this is the largest country in the world. Thus, it is vital to consider targeting in such a region. Targeting is breaking a large market like that in Russia into smaller segments instead of reaching out to the entire market, which can be time-consuming. The best thing to do in this case is to target the segments which have been mentioned above.
Positioning is the place which is occupied by a brand in the mind of the customers and how it differs from what the competitors present. The best way to position a product is to ensure that it is unique compared to what other organizations produce so that it can be considered by the customers. When looking at paly station 5, it will have a good position in the Russian market because other companies like Apple, Huawei, and Samsung have a different design from this. Thus, Sony will have a unique position in the mind of the customers.
Additionally, it is essential to consider a competitive analysis for Sony by looking at what its competitors have and what they don’t have, which impact on their operations. The competitors include Apple, Microsoft, Philips, Sam sung, and Qualcomm. One of the strengths that the competitors have is that they are global brands that operate effectively in all the countries. Another strength is having an extensive product portfolio. This is especially the case with Microsoft, which has the highest product portfolio (Razza, 120). One of the weaknesses presented by Microsoft is the decline of the PC market, which is fuelled by the sale of tablets and smartphones. Another weakness is the advertisement revenues, where they have smaller shares in the online advertising industry.
Application of International Marketing Tools
In marketing, the 4ps of marketing mix include promotion, place, product, and price. For an extended period, Sony has been known to maintain a marketing mix that satisfies its needs in reaching to the target consumers (Chung & Lai, 218). Sony’s products can be found in gaming, mobile communication, financial services, pictures, music, and other devices. When it comes to product delivery, different places are used to deliver products. This includes the Sony stores, websites, cinemas, and authorized sellers. The company also promotes its products in different ways. The promotional mix which is used includes personal selling, sales promotion, direct marketing, advertising, and public relations. The other thing which is the most vital is about the prices Sony uses three strategies in pricing: market-oriented, value-based, and premium pricing strategies.
Works Cited
Chung, Jen-Chieh, and Ying-Hsiao Lai. “Consumer Behavior in the Smartphone Segment Market: An Analysis of College Students.” Int. J Sup. Chain. Mgt, Vol 6.3 (2017): 218.
Dolnicar, Sara, Bettina Grün, and Friedrich Leisch. “Market segmentation analysis.” Market Segmentation Analysis. Springer, Singapore, 2018. 11-22.
Razza, Mike, Joseph Varghese, and Wilson Lee. “A Perspective on an Asian Pacific Orthodontic Society Boards: A SWOT Analysis and Proceedings of Deliberations at the APOS Boards Forum Held at the 9 [sup] th APOC, Bali, on September 2, 2016.” APOS Trends in Orthodontics 7.3 (2017): 120-120.
Sukhodolov, Alexander P., Elena G. Popkova, and Irina M. Kuzlaeva. “Peculiarities of formation and development of internet economy in Russia.” Internet Economy vs Classic Economy: Struggle of Contradictions. Springer, Cham, 2018. 63-70.
Sherlock, Thomas. “Russian politics and the soviet past: Reassessing Stalin and Stalinism under Vladimir Putin.” Communist and Post-Communist Studies 49.1 (2016): 45-59.
Morgan, Neil A., Hui Feng, and Kimberly A. Whitler. “Marketing capabilities in international marketing.” Journal of International Marketing 26.1 (2018): 61-95.