| Case Study of Marketing in Iraq for Chinese Mechanical and Electrical ProductsSince Iraq invaded Kuwait in 1990, Economic sanction like embargo has been imposed against Iraq by the United Nations and almost snuffed out the Iraq's economy. Concerning of humanitarianism and the basic demand of the Iraqi, a Memorandum of Understanding signed between the government of the Republic of Iraq and the United Nations which allows Iraq to export its crude oil in exchange for humanitarian goods such as food, medicines, the equipment of electricity, water supply, petroleum industries, and so on.Our company, which deals with the export of mechanical and electrical products, is engaged in the Iraq's tendering business. Although Iraq's market is much different from that of other countries at present, I learn in practice that it is possible to find out the general marketing rules in Iraq's market by using Modern Marketing Theory.In this essay, I try to analyze the case of marketing Chinese mechanical electrical products in Iraq, and try to find out the rules in common to benefit our export.This essay gives the general information of Iraq first, then emphasizes in its foreign trade, Sino-Iraq trade under "oil for food" agreement. Subsequently, it concludes the characteristics of Iraq's market: huge potentiality in Iraq after the Gulf War; all import should be carried out on the nature of governmental tender and supervised by the United States, the United Kingdom and other developed countries, which are in bad relationship with Iraq.Case 1 demonstrates the target market selection of our company's business with Iraq, according to the market characteristics and analysis of Iraq's trade system, customs and economic, political environment.Case 2 to Case 5 are the real cases of mechanical and electrical products' marketing of Chinese companies in Iraq, and are analyzed to the reasons of their success and failure with Modern Marketing Theory. Through analyses, I get some general marketing rules and similarities as follows:Function of Customer ValueAll marketing activities are to meet customer's demand, which key is to maximize the Customer Value. In Case 2, our company's price is the lowest one among all the bidders, but we lose it in the end. Our failure can be well explained by the Theory of Customer Value. The factors that influence Customer Value are of many aspects, including quality, specification, price, image value, time cost and labor cost etc. The price is not the only factor, so one can even lose it with the lowest price. The maximization of the Customer Value is the key to success in competition. Establishing the competitive advantage: The leader of a company should realize the competitive trend of their field and its competitive advantage. In Case 3, to ensure the profits of both companies, our company cooperates with West House in order to meet the preference of the Iraq client to occidental famous brand. This co-operation makes our production occupying both technology and brand of West House and the low-cost advantage of Chinese production. And then establishing the competitive advantage of our company. Finally, this bid was awarded to our company due to this cooperation. At the same time West House attained profit. Both West House and our company take the advantage of this cooperation.Holding on to the competitive advantageIn order to hold on to a long tem competitive advantage, keeping long term business relationship is more important than attaining a new client. Such as "case 4", The First Automobile Manufacturing Co. lost the client due to ignoring quality of product and after-sale service. "Case 4" provide us with a very good lesson of how to hold on to a competitive advantage.Influencing factors to purchase decisionIn the industrial market, the purchase decision makers, products, delivery terms, payment terms, service, supplying capacity of the manufacturer and so on act a main role to the purchase decision. As mentioned in "Case 5", our company... |
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