as to win the battle with local business enterprises (i.e. Bowersox and Cooper, 1992).
Since 1990s, multinational Corporations (MNCS) gradually become the leading actors of foreign companies who come to explore the market of China. Along with China’s WTO entry, a tide of investment by MNCS surges in China. And now about 450 of the 500 largest multinationals in the world have invested in China. About 30 of them have founded their headquarters in China. In addition, MNCS have founded more than 600 research organizations. At the same time, MNCS have devoted to build their marketing channels in order to maintain the overall presence and success they enjoy in the Chinese marketplace. However, scholars study (i.e. Luo, Y.,& Park, S. H 2004, p.145; Tsui A. S et al 2004, p.133) has shown that many foreign companies have not won the battle against their increasingly marketing savvy local rivals in spite of a significant proportion of their marketing budgets in China. As some literature points out, “adaptation of distribution strategy to meet the particular sets of circumstances in foreign environments is likely to be necessary in virtually all cases” (Rosenbloom and Larsen, 1993). Both successful joint ventures and failed investments have been also reported recently,however the few empirical investigations have been severely limited in industry or enterprises. Research addressing issues of the channel conflicts, the applicability of channel theory derived from developed market in developing market has appeared, but few focuses on identifying the key driving factors and their managerial implications for foreign investors to successfully enter China’s market. The practice show that the theory of marketing channel developed within western market is not always applicable for the MNCS in China (which are deemed emerging economy, Zhang & Marsha, 2004). In Chinese market, except relying on high quality products and the scope superiority, what’s more important is the marketing strategy in accordance with particularity of the China market. Thus, the major objectives of this paper are to identify the successful marketing channels practices of MNSC in China and present the comprehensive realities of China's MNCS marketing channel strategies (especially the channel structure, member recruiting and conflicts management). In addition, it identifies and explains the main factors that influence channel structures in order to understand the planning of channel structures deeply. On these bases, it also aims to identify the marketing channel issues--standardization and localization arising in China. The specific research questions include:
(1) How the marketing channels of MNCS in China structure and what the driving factors that impacting the choice of MNCS when make channel structures decision, or which one is most important among the typical factors (i.e. product, consumer, company and et al)?
(2) How MNCS recruit Chinese channel partners in order to win the competition advantage and lower the channel cost?
(3) How MNCS harmonize the channel partners’ view and behaviors with their marketing strategy or what kind of tool they frequently rely on?
This
thesis adopts realistic study method. It selects some typical MNC, which are of the most brand value in China and have succeeded in building and managing channel in China. To obtain a systematical understanding of the channel strategy of these MNCS in China, the research focus
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