Successful Marketing in Japan Essay Example | Topics and Well Written Essays - 2000 words

Successful Marketing in Japan - Essay Example This piece of paper addresses major factors that are to be considered by foreign businesses that intend to launch their lucrative business in Japan and explain what they should do to respond to the cultural myopia that prevails in Japan. Mastering the marketing in Japan Japan, being the second largest economy of the world, occupies a significant position in almost all industries and business activities worldwide. From the 1940s onwards, the country has been able to build a dominant, modern and internationally-oriented industrial economy which was based on innovative product designs, high quality production, advanced services, increased domestic consumption etc (Genzberger, 1994, p. 1). Japan is not only a strong economy in terms of production, exports, innovation, advanced services etc, but also a powerful market that large numbers of businesses from other countries seek opportunities in Japan. But, administering and mastering the marketing in Japan is considered to be a difficult ta sk. There are different barriers to marketing in Japan. Some of the major barriers to selling to Japan are import barriers, obstructive bureaucrats, non-transparent regulations, huge language barrier, conglomerate monopolies etc (Genzberger, 1994, p. 175). For any businessman from other countries to launch, run, operate and succeed in Japan’s market is therefore a difficult task, but there are many lucrative businesses that have strategically approached the market and found success in its path. As Reid (1999, p. 41) observed, even though Japanese market has long been considered to be obstructive to penetrate, experts on business in Japan have found that this is quite misleading. Various business strategies have been found to have helped foreign businesses in Japan’s market. Goodnow and Kosenko (1993) identified key strategies that North American companies used for marketing in Japan. Management philosophy, high technological capability, acceptance of Japanese subsidiar y etc are some of such effective strategies. Reid (1999, p. 41) pointed that foreign companies have not only succeeded in marketing in Japan, but also established leadership positions mainly in Japanese consumer products market. Many foreign players have turned to be established leaders in the Japanese market. For instance, Coca-Cola generates around 30 percent of its total profits from Japan, 70 percent of Dunhill’s sales are from Japanese people and IBM employs around 20,000 Japanese people. Factors to be considered by foreign corporations to conduct business in Japan Cost element While comparing the relative costs that may incur in marketing in different countries, it can be found that marketing in Japan is more costly than marketing in many other countries (Genzberger, 1994, p. 175). When it comes to various business expenditures, almost every thing including rent, salary, transportation, advertising, banking etc are highly expensive than that of other countries. Cost has been accounted to be 50 percent of all the reasons behind the failure of companies in marketing in Japan. For those corporate who have a quality product, advanced technology, innovations and more importantly those who are willing to undertake the high initial costs for market entry in the