Introduction
In the contemporary world, competition has forced many businesses to focus on exploiting opportunities in the international markets (Wild, Wild & Han, 2006). According to Kotler and Armstrong (2012), the macro factors that affect the international business environment include the economic, political and legal factors. In order to market the front-load washers and dryers in the Czech Republic; the prevailing economic, political and legal factors play a great role in marketing.
Economic, Legal and Political Concerns
Economic factors determine the viability of a business in a given country (Daniels, Radebaugh & Sullivan, 2015). According to Wild, Wild and Han (2006), economic factors determine the interest rate, the fiscal policies, the GDP and the inflation rates. In 2011, the Czech Republic had an economic score of 70.4. The score led to ranking of the Czech Republic among the top 30 freest economies to do business (Jolly, 2012). Based on the free economy and the mean earning of 20,000 USD, Czech Republic presents favorable environment for the washers.
Policies that relate to doing business such as taxes, import tariffs, and money transfer guidelines are dictated by political will (Wild, Wild & Jolly, 2006). The Czech Republic is a democratic country, politically stable, and a member of the European Union (EU). Legislative changes affect the entry and operation of foreign business in any country. In the international arena, legal issues that affect businesses include the type of business ownership, tariffs, foreign policies and local government requirements for the establishment of business (Wild, Wild & Han, 2006). In the Czech Republic, the legal requirements alignment relates to EU trade policies. There are no strict legal restrictions for doing business due to the EU policies used in the Czech Republic.
Product Differentiation and Alteration Strategies
The free trade in the Czech Republic has opened the country to increased competition from the both the international and domestic firms. The competition requires companies intending to enter the market device strategic strategies to gain a competitive edge. One key strategy for the entry to new market is product differentiation. According to Kotler and Armstrong (2012), product differentiation is a marketing strategy such as value addition. For example, the machines will have technological specification to increase efficiency of the machines hence creates a perception of a superior brand.
Product alterations play a significant role in gaining competitive advantage. Kotler and Armstrong (2012) stated that product alteration is a marketing strategy that aligns a product to adapt to the target customer preference or meet the required conditions in the market. The alteration strategies for the machines will be based on target market preference. The front washers and dryers will thus be custom made to meet the needs and favor the operating needs of the target clients.
Marketing Mix
Marketing mix is a crucial tool used by marketers to analyze market situation in order to improve sales. Marketing mix comprises of the 4Ps of product, place, price and promotion (Banting & Randolph, 2010). The product is the service or good that is being offered and its specifications. Kotler and Armstrong (2012) noted that product mix involves defining the customer needs, the unique features, the branding, and the differentiation strategies from similar products by competitors. Product differentiation and alteration will ensure that the machines gain preference over those already in the market.
Place mix is concerned with identifying where the target customers are situated and identifying the right distribution channel to reach the target customers. The place mix ensures that a product reaches the target customer at the right time (Banting & Randolph, 2010). For example, branded store for the font washers and dryers strategically located in the major towns. The promotion methods entail use of various communication channels used to pass the sales message to the customer (Banting & Randolph, 2012). The marketing strategy will include the use of strategically placed billboards and television.
Staffing Approaches
Ethnocentric Staffing
Ethnocentric staffing involves employing expatriates to occupy the most important positions. According to Gupta (2013), expatriates understand the interests of the home country. The knowledge of the home business ensures that the foreign offices align with the standards of home business.
Ethnocentric staffing ensures that lack of experienced managers is not encountered in the case the host country does not have highly trained and educated workforce (Gupta, 2013). The staffing ensures that there is transfer of the important competencies from home country to the foreign market.
Example: ABC Washing Machine Company employing all the top management officials from United States.
Polycentric Staffing
Polycentric staffing approach entails a company hiring nationals from the host country for all available positions. According to Gupta (2013), the method is normally suitable for countries with highly, trained and educated employees.
The advantages of polycentric are that host nationals understand the business environment of their country and hence can guide the company through the prevailing business environment. Polycentric staffing shows commitment of the company to home development (Gupta, 2013).
Example: The management of ABC Washing Machine Company employing Czech Republic citizens to all positions available from clerks to the top country manager.
Conclusion
To overcome international challenges, a company must analyze the macro-environmental factors that affect the operation of the business such as the political, economic and legal issues. Differentiation and marketing application of market mix strategies ensure that a company increases the sales. Thus, the marketing of the front washers and dryers in the Czech Republic will depend on the analysis of the market environment.
References
Banting, P. & Randolph, E. (2010).The marketing mix: A Canadian perspective. Journal of the Academy of Marketing Science, 1 (1), 2-18.
Daniels, J. D., Radebaugh, L.H., & Sullivan, D. P. (2015). International business: Environments and operations. Upper Saddle River, NJ: Pearson Education.
Gupta, A. (2013). International human resource management in sustaining international business operations. Educationaia Confab, 2(5), 43-49.
Jolly, A. (2012). Doing business in the Czech Republic. London: Kogan Page.
Kotler, P. & Armstrong, G. (2012). Principles of marketing. Harlow: Pearson Education.
Wild, J., Wild, K. & Han, J. (2006). International business: The challenges of globalization. Upper Saddle River, NJ: Prentice Hall.