Volkswagen in China, Marketing Assignment

Marketing is an important tool for any business. It is how a company makes their product known to the public. Without marketing, the consumers will either not know that the product even exists or will not know all the applications of the product; who makes it, what it is and what it is made from, when came on the market, where it can be purchased, how it can help the consumer and why the consumer should even purchase the product in the first place. According to Tom Ash, Marketing is the process whereby demands for products, services and ideas are anticipated, managed and satisfied (2011).

Global competition from Chinese auto manufacturers has adversely affected the American auto industry. Chinese manufacturers like Toyota have advanced rapidly and are now able to mass produce and sell cars at a cheaper price than some of the American auto manufacturer. Besides, Toyota has

Another value that is very important in Chinese culture is trust. Trust lies at the heart of successful long-term intercultural business relationships. Therefore, Oldtown employee must be prepared in gaining the Chinese Manager in China trust to deal with business. In China, the cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values or assumptions about how business works. When trust is developed, partners can navigate difficult issues over time by fostering a candid exchange of ideas, issues and agendas. Developing trust can significantly reduce what Westerners often complain of in their dealings with Chinese counterparts: unpredictable behavior and a lack of transparency. As a Chinese executive at Google put it, “In China, your success depends on how well a person trusts you.”

Only 35 people per 1000 own cars in China which compared to the United States, 600 per 1000, shows there is ample room for growth in the market. Most major car manufacture has a presence in the market, but political forces limit the penetration of these companies. According to report in Business source complete, the Chinese government is even pressuring domestic companies to grow and force out foreign competition. But this goal of the Chinese government cannot be realized until the smaller local manufactures can somehow combine so they may compete with larger foreign firms.

China is at present the biggest auto market on the planet. It is likewise one of the biggest car parts makers and exporters on the planet, with fares, essentially to the United States, constituting around 33% of its production. The Chinese government has given subsidies to automobile parts producing in China, and vital choices by Chinese policymakers and outside organizations have implications for the U.S. also, worldwide global economies. China has seen a general decrease in destitution and a drop in imbalance. China has been under the administration of the Communist Party of China (CPC) for over 60 years, and the initiative has possessed the capacity to force its choices on the nation without experiencing consultations and transactions (Valey, 2012) .

resulted in the social acceptable for the new energy vehicles in China, which also completely

China has been a focus of many foreign investors, owing to various reasons which serve to create attractive business opportunities. For instance, the country has been experiencing rapid infrastructural developments, reducing cost of doing business within the society. It has also been remarkably stable in terms of both political and economical pillars of the state. It has also a wide market due to its high population, providing market for products and services of many businesses (Hill, 2014).

Moreover, according to Global Times, the Chinese government continues to support to have at least 500,0000 new energy vehicles and subsidize local new energy vehicles until 2020 to deplete the air pollution emerging from passenger vehicles. In 2010, World Bank recorded China as the world’s carbon dioxide contributor with 8.3 gigatonnes carbon dioxide in that year alone. The Beijing Other policies include reducing and exempting taxes on new energy vehicles and levying emission discharge fees on fossil-fuel vehicles. Apart from that, the central government ordered the local authorities to lift restrictions that limit the number of use of foreign new energy vehicles. All these support will boost Tesla’s business operations in the long term both directly and indirectly.

Over the years, China has been developed rapidly not only in terms of their economic growth but also industrial development, which bring opportunities for investors to invest in China. There are some main areas of PEST related to automobile industry in China that investors might want to consider before they intend to invest in the industry. Recently in China, there is an ongoing promote rule of law. A legal system has been developed to restrict of official authority and revolutionary excesses after the Cultural Revolt. On the other hand, China has transformed its economic into the market orientated that positively impact on not only in China but on the whole world as well. Since there is a high growth of economy ongoing in China, it is a huge opportunity for investors to develop their business in China especially the automobile industry. Alongside the large population in China, it helps to create an opportunity for General Motor to magnify its business and it also help to increase job opportunities in China. In addition, it cannot be denied that China is one of the greatest opportunities in technology field because there are a number of high technology development has been established for researching and developing in China for technological innovation purposes over the past years. All these rapid development in China causing a serious impact on their environment that include in increasing the pollution while decreasing the natural resources. Therefore,

Some of the main issues that companies in the automobile industry are currently facing are, “reporting and regulation, sustainability and the environment, plant location, closures, and relocation, emerging market companies, evolving distribution channels, consumer trends, private equity investment, improving operational efficiencies, market entry and expansion, and business operating model structure” (“Automotive,” n.d.). Issues such as reporting and regulation are often results of the government attempting to regulate the industry because they feel the current situation is not adequate. Along with this, many companies are concerned about the sustainability of the company, as well as the environment. With this in mind, some companies have made changes in their operations to make an attempt to preserve the environment. However, other issues in the industry such as plant location, closures, and relocation can be the result of other aspects of society related to government restrictions, downturns in the economy, and lack of space available with an increasing population. On the contrary, emerging market

In this day and age, marketing plays a pivotal role in the business environment. Marketing is dynamic, complicated and challenging. The basic concept of marketing is to identify the need of human and society, and research how to satisfy and create those need. According to American Marketing Association (AMA), defining that marketing is the processed activity which communicate and exchange valuable offerings to customers (AMA, 2013). To be more precise, the main mission of marketing is choosing target market, creating, delivering customer value in order to develop the partnership with customer, and contribute to the organization and relevant stakeholders (Kotler & Keller, 2011). In a word, ‘marketing is to meet needs profitably’ (Kotler & Armstrong, 2011).Therefore, when it comes to launching a new product is not easy in such intensive marketing environment, it is estimated that the failure rate of new products is at 90 percent in Europe and even at 95 percent in United States resulted from high development cost, bad launch timing, poor design of product and incorrect segmentation, targeting and positioning (Kotler & Armstrong 2011). As a result, marketing is not only regarded as selling, in other word, selling is not the most vital part of the marketing process, Peter Drucker who is a prestigious founder of modern management asserted that the making selling unnecessary is the objective of marketing. The aim of marketing is to realize customer profoundly so that the product

Chinese automobile industry grew rapidly in the past years, that’s related with the open policy in China government, the fast modernization and development in automotive industry, and other factors. The Chinese automotive industry has been the 4th largest vehicle producer in the world. The Automobile industry contributed to Chain’s total GDP growth nearly 20%, and total automobile sales in China was around 4.45 million, which included 4.39 million made in China. The Chinese automotive industry has two types, one is the domestic one, and the other is the cooperation with international partners. These two types of company domain Chinese automobile industry.

#### This is incomplete ### China has emerged as the center of focus in the automobile industry. From its mere production of trucks in the earlier years of development and the further production of saloon cars for specific members of the political class, the country has evolved to be leading producer and consumer of cars. This has been through various pitfalls in the process of growth with success and failure of certain policies. One of the significant events that were followed by a spur in the growth of local production was its accession in the WTO. Nevertheless, with the mix of other macro economic variables, the future trend of the industry may take a different direction due to possible factors for instance domestic foreign investment (DFI) and possible market saturation or even economic downfall.

earlier this year Chinese government changed their focus from numbers to quality and made a

In general terms, marketing is all related to the places of buying and selling of goods and services to satisfy customers’ needs. Nowadays marketing is the most important issues for success of every business marketing is the activity, set of institution, and process for creating, communicating, delivering, and