Volkswagen in China, Marketing Assignment

4040 Words17 Pages
1.0. Introduction. Marketing nowadays is the essential element of successful organizations (Kotler, 1999). And of course all products that are produced by companies are made to be sold and provide the profit for producers in this light marketing is the most important tool because it effects profitability and sales dramatically and provide the healthy turnover for the company. According to Kotler marketing is “the process that satisfies needs and wants through an exchange process” (1999). The Chartered Institute of Marketing enhances this definition to 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably '. Marketing is based on several marketing concepts (Appendix 1).…show more content…
Moreover Chinese government is becoming more concern about environment, chronic traffic jams, pollution and created new laws and pacts that leads to increasing of taxes and barriers for foreigner’s car production in China. 3.3. Social-cultural impacts. For adopting the right marketing strategy is crucial to evaluate and take into attention all social factors, social constructed behaviour and interpretations which is affected by their broader social force, structures or process (Saunders, Lewis & Thornhill, 2003) that may influence company in the foreign market (Hill, 2001). In comparison with Western countries China has many different cultural habits and beliefs, types of behaviour and traditions that impact even business sphere. For example the “Guanxi” issue - interpersonal connections are more important than your knowledge, based on trust (Malcolm Warner, 2003; Jie Tang and Anthony Ward, 2003) adopting that concept can determine the success and stability of business, domestic partners may decrease cultural problems and issues and minimize the risks ( Cai Qian ,2007). The other social aspect is that China is the most populated country all over the world with the biggest market in the world. The next important social impact that may influence Car producers in China is that there is a big gap in income distribution of population.. At the same time the average population income is

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