Market Entry Srategies Strong Market Base

Question: Discuss about theMarket Entry Srategiesfor Strong Market Base. Answer: Introduction At the heart of successful marketing lies a comprehensive and successful market entry strategy that assures the firm of a strong market base. A market entry strategy refers to a well-planned method or strategy of delivering a firms product to a new target market. In the modern business arena the mode of marketing and the aspect business to business marketing has become widely adoptable. During the planning phase, a company must consider a variety of factors before choosing the appropriate market entry strategy which includes but not limited to the cost of marketing, barriers to entry, and the level of competition in the market. The factors that dictate the market entry strategy may be grouped into two broad categories; that is external and internal factors. While external factors comprise of market size, market growth, government regulations, the level of competition and physical infrastructure; internal factors, on the other hand, encompasses the objectives of the company, availabil ity of company resources, the level of competition, and the companys flexibility. Although two companies may have similar factors, the may choose entirely different market entry strategies. The essay aims at reflecting on how different models and marketing concepts in business to business marketing influences the choice of the market entry strategies. To address this the paper uses the case study of market penetration strategy in Egypt by the G4S - Cash360 Various models exist to explain the business behavior and how it affects the choice of the market entry strategy. Among the models includes the sheth model (1973), the model of Webster and Wind (1972), and the model of Robinson, Faris, and Wind (1972). Howard-Sheth model is arguably one of the most relevant models in marketing that serves to reflect the consumer behavior in the market (Robertson, 2013, p. 38). This were the models which were adopted by the group during the workshop. The model aims at explaining how businesses choose products in the situation of incomplete information provided by another business. According to the model, the business express rationality during the initial purchase phase and other repeated purchases. However, the repeated purchase is as a result of the incentives whose source might be in the environment (Input variables). Hyun and Jin (2012, p. 127) argues that the input variables refers to the stimuli which arise from the market entry strategy of the firm coupled with other related marketing activities. Among the three main stimuli (symbolic incentives, significant incentives, and social stimuli), significant incentives arguably have the most impact on the choice of the market entry strategy. It refers to the physical attributes of the product such as quality and price. In the light of this consideration, the group found that the best market entry strategy for G4S-Cash360 for example would be a pricing strategy (Gross, 2013, p. 168). Pricing strategy would serve to ensure a low but aggressive strategy while at the same time maintaining a fair share of added value. The basis of such added value is the value adding principle as well as adjusted for relationship coupled with incentives for market bond provision. Closely related to the Howard-Sheth model are the Webster and Wind Model which argues that four main factors influence businesses buying decision and therefore dictating the choice of the market entry strategy. According to Lymbersky (2008, p. 193), the factors comprise of individual factors, organizational factors, buying center, and environmental factors. More important to the purpose of this essay is the influence of buying centers and organizational factors on the choice of the marketing strategy. Organizational factors encompass factors such as objectives, purchasing policies, and organizational structure of the firm (Wu, 2006, p.101). It is these variables that serve to influence the functioning as well as the composition of the buying centers thus dictating the market entry strategy for the marketing firm. As such, the business marketing its products and services to another company must study the behavior of the target business and all the related factors that affect its purchase behavior before deciding on the best market entry strategy. For example, environmental factors such as good infrastructure such as roads would support an aggressive promotional strategy and a wide coverage for the Egypt market for the G4S-cash360. Otherwise knows at the Robinson, Faris, and Wind model, the buy-grid model, relates to the buying processes of both the consumer and the businesses. The marketing researchers (Robinson, wind, and Faris) argue that buying decision is not as a single-event process, but involve multi-stage decision-making (Helen et al., 2005, p. 228). The model comprises a matrix of buy-phases as well as buy-classes which are new tasks, modified rebuy, and straight rebuy. In the new task buy-class, the business seeks a lot of information to analyze the alternative purchasing options. In this phase, risk serves as the main factor influencing the amount of information needed. For example, when a marketer introduces a new product in the market for another business, the marketer must find a wide variety of information on the product. Similarly, the group applied the similar model on how G4S Cash360 can penetrate in the Egypt market. As such, Park and Lee (2009, p.64) argues that the appropriate market entry strategy is an aggressive promotional strategy that serves to inform the potential consumers of the availability of the product, its usage, and its benefits over other products among other factors. For instance, in the case of G4S-Cash360, a direct market strategy with aggressive promotion would be the best market entry strategy. Conclusion Different factors, the main one being the consumer behavior, dictates the choice of the market entry strategy for a firm. As such, the firm must pay close attention to the different consumer behaviors among other considerations before settling on a market entry strategy. It is notable that it is the marketing strategy that opens up the market for the companys product; therefore, should the initial choice of the entry strategy be wrong, the entire marketing strategy would experience some challenges. Therefore, the marketers should focus on adopting various and different marketing entry models as per their organization products and services. This will ensure that the company products and services gain easy penetration and saturation. References Gross, J., 2013. Market Entry Strategies for Saturated Markets: Challenges for the Consumer. GRIN Verlag Helen, W.B., Sue, E., and Elliot, 2005. Special Issue: Towards a Theory of Shopping, Journal of consumer behavior 4 (4): 221-303 Hulen, B., 2015. Sensory Marketing: Theoretical and Empirical grounds. Routledge Hyun, H. L. and Jin, Y., 2012. Consumer perceptions of online consumer product and service Reviews, Journal of Research in Interactive Marketing, 6 (2): 110-132. Lymbersky, C., 2008. Market Entry Strategies: Text, Cases and Readings in Market Entry Management. Christoph Lymbersky Park, C. and Lee, T.M., 2009. Information direction, Website reputation and eWOM effect: a Moderating role of product type, Journal of Business Research, 62 (1): 61-67. Robertson, T.S., 2013. A Critical Examination of Adoption Process Models of Consumer Behavior. Marketing Classic Press Wu, S-I., 2006. The impact of feeling, judgment and attitude on purchase intention as online Advertising performance measure, Journal of International Marketing and Marketing Research, 31 (2): 89-108.